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Nationalization

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 or services that better meet consumer preferences.

Notable nationalizations:



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