Arguments against Privatisation

Disadvantages of Privatisation

1. Natural Monopoly

Most efficient number of firms in some industries like water is 1. Therefore it is better to have a public monopoly rather than a private monopoly which can exploit the consumer.

2. Public Interest e.g public services should not be run as profit making bodies

3. Public borrowing will increase in the long run because the government no longer gains the profits

4. Problem of regulating private monopolies

5. Rail Privatisation in the UK unsuccessful

 

Revision Notes and Essays on Privatisation

• Privatisation
• Arguments for Privatisation
• Disadvantages of Privatisation
• Nationalisation
• Privatisation in the UK
• Rail Privatisation
• Regulation of Privatised Industries
• Other Supply Side Policies