Title: Arguments for nationalisation - Economics Help
Headings: Arguments for nationalisation
Arguments for nationalisation
Arguments for Nationalisation include
1. Natural Monopoly
2. Profit shared with taxpayer
2. Externalities
3. Welfare Issues
4. Industrial Relations
5. Government Investment
6. Free market failure
7. Saved banking system
Evaluation of benefits of nationalisation
Nationalisation vs Privatisation
Related pages

Content: See more at: Natural Monopoly
2. Profit shared with taxpayer
If Virgin Trains set high ticket prices, you know the profit margin will go to a small number of wealthy shareholders. If the same service was run by a nationalised British Rail, any profit from profitable train services would go to government revenues and enable lower tax rates. 2. Externalities
Some of the nationalised industries had significant positive externalities. For example, public transport plays a key role in reducing pollution and congestion. A private firm would ignore the positive externalities, but a government run public transport system could invest in public transport to help improve the economic infrastructure. 3. Welfare Issues
Some industries play a key role in the welfare of consumers and citizens.