Register a SA Forums Account here!
JOINING THE SA FORUMS WILL REMOVE THIS BIG AD, THE ANNOYING UNDERLINED ADS, AND STUPID INTERSTITIAL ADS!!!

You can: log in, read the tech support FAQ, or request your lost password. This dumb message (and those ads) will appear on every screen until you register! Get rid of this crap by registering your own SA Forums Account and joining roughly 150,000 Goons, for the one-time price of $9.95! We charge money because it costs us money per month for bills, and since we don't believe in showing ads to our users, we try to make the money back through forum registrations.
 
  • Locked thread
Infinite Karma
Oct 23, 2004
Good as dead





Why does nationalization of industries have to be "exclusive" for governments to participate? The government could manufacture anything from generic drugs, to housing, to aluminum cans, and sell them at profitable rates, without preventing private companies from doing the same thing. Sure, most governments aren't set up with the correct bureaucracies to have for-profit arms, but isn't that a solvable problem?

Adbot
ADBOT LOVES YOU

Infinite Karma
Oct 23, 2004
Good as dead





rudatron posted:

Because you're using the income from selling those goods to fund things like the military, police and social services, so a business that doesn't have to do any of that is going to have a price advantage. Therefore, it had to be either full nationalization, or in whatever limited areas you do nationalize, you can't allow anyone else to compete.
The first part of this is simply not true. Successful private companies have a net profit (after paying all costs/salaries) that's distributed to stakeholders. A government-run industry can be structured exactly the same way.

Contrary to your conjecture, the government might also be too competitive, with strong economies of scale, less extravagant executive compensation, and the ability to bypass regulation that private entities couldn't. Strong accounting safeguards would need to be in place to make sure the for-profit entities didn't send industries into a race to the bottom, or become monopolies in their own right. How is there such a disconnect on the operation of government programs?

rudatron posted:

Really though a lot of these schemes, in fact all of them short of full communism, are functionally equivalent to a government running on either a flat tax (inflation) or sales tax (limited-nationalization).
How is either of these things true? Inflation also reduces the real value of debt, which helps low income households. And limited-nationalization isn't the same as a sales tax unless the products cost more than private industry would have sold them for.

  • Locked thread