▁state - owned ▁fir ms ▁to ▁help ▁implementing ▁government ▁policy . ▁ ▁Prof it : ▁private ▁companies ▁do ▁not ▁have ▁any ▁goal ▁other ▁than ▁to ▁maxim ize ▁prof its . ▁A ▁private ▁company ▁will ▁serve ▁the ▁needs ▁of ▁those ▁who ▁are ▁most ▁willing ▁( and ▁able ) ▁to ▁pay , ▁as ▁opposed ▁to ▁the ▁needs ▁of ▁the ▁majority , ▁and ▁are ▁thus ▁anti - dem ocr atic . ▁The ▁more ▁necessary ▁a ▁good ▁is , ▁the ▁lower ▁the ▁price ▁el astic ity ▁of ▁demand , ▁as ▁people ▁will ▁attempt ▁to ▁buy ▁it ▁no ▁matter ▁the ▁price . ▁In ▁the ▁case ▁of ▁a ▁price ▁el astic ity ▁of ▁demand ▁of ▁zero ▁( per fect ly ▁in el astic ▁good ), ▁the ▁demand ▁part ▁of ▁supply ▁and ▁demand ▁theories ▁does ▁not ▁work . ▁ ▁Priv at ization ▁and ▁pover ty : ▁it ▁is ▁acknowled ged ▁by ▁many ▁studies ▁that ▁there ▁are ▁w inners ▁and ▁los ers ▁with ▁priv at ization . ▁The ▁number ▁of ▁los ers — which ▁may ▁add ▁up ▁to ▁the ▁size ▁and ▁sever ity ▁of ▁pover ty — can ▁be ▁unexpected ly ▁large ▁if ▁the ▁method ▁and ▁process ▁of ▁priv at ization ▁and ▁how ▁it ▁is ▁implemented ▁are ▁seriously ▁fla wed ▁( e . g . ▁lack ▁of ▁trans par ency ▁leading ▁to ▁state - owned ▁assets ▁being ▁appropri ated ▁at ▁min usc ule ▁amounts ▁by ▁those ▁with ▁political ▁connections , ▁absence ▁of ▁regul atory ▁institutions ▁leading ▁to ▁transfer ▁of ▁mon opol y ▁r ents ▁from ▁public ▁to ▁private ▁sector , ▁impro