Nationalization (or
Nationalisation) is the act of taking private assets into
government or
state ownership. It is the opposite of
privatization.
Arguments for nationalization:
- Elimination of a private monopoly in an essential service.
- Removing an extreme imbalance of wealth.
Arguments against nationalization:
- Government inefficiency in running production, trading, or service operations may cause misallocations of labor and capital, with consequent reductions in the standard of living and economic growth.
- Groups may object violently to losing their private assets, particularly when no compensation is paid.
- Lack of accountability to the market, i.e., consumer choices may be reduced and there may be no alternative sources for goods orservicesthat better meet consumer preferences.
Notable nationalizations:
