Business and its environment –
Privatization –
Whether to privatize, it depends on certain political ideologies.
For profit businesses often end up making money through – 1. Tax subsidies 2. Private tolls
When public services should not be privatized –
1. When the purpose of the service is to bring us together. (e.g. public postal service, public
education etc., banking – these services need to pull our society and community together
rather than divide us)
2. Don’t privatize when the service is less costly when paid for through tax revenue than
3.
4.
5.
6.
7.
8.
through prices set by for profit corporations.
Don’t privatize when the people who are supposed to get the service have no power to
complain when services are poor.
Don’t privatize when those who are getting the service have no way to know they are
receiving poor quality.
Don’t privatize where for profit corporations face insufficient competition to keep prices
under control.
Don’t privatize when there is a chance of formation of monopoly.
When profit motive can destroy an industry e.g. education and defense sector
When it is too complex to make regulations e.g. railway sector
Class 1 – 18/07/23
General discussion Identify and explain three important arguments for and against privatization and nationalization -