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:

• British Coal[?]
• British Gas[?]
• British Rail
• British Telecom
• Nationalization of the oil industry in numerous countries, including Kuwait, Mexico, Saudi Arabia, and Venezuela
• All manufacturing enterprises in the Soviet Union, in 1918
• Many retailing enterprises in the Soviet Union, in 1918
• Companies in Cuba (the USA has long complained about these nationalizations).