Nationalisation
- Created by: audreyhorne123
- Created on: 12-01-20 14:15
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- Nationalisation
- Most of the UK's major strategic heavy industries and public utilities were nationalised between 1946 and the early 1950s, only to be returned to the private sector between 1979 and 1990.
- Nationalisation involves the transfer of industry from private ownership to state control.
- Advantages
- Services, especially natural monopolies may be better co-ordinated
- Benefit from economies of scale
- Prioritise consumer needs over profits- acknowledges positive and negative externalities
- Any profits are shared with the tax payer due to increased Government revenue
- Can provide long term investment
- Disadvantages
- Principal-agent problem causes inefficiency
- Lack of competition
- Political bias- may only do projects that keep the party popular and only short term
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