Rail Privatisation Failure – Why we pay more for TrainsWatch this video on YouTube In the Victorian age, the UK led the world in building railways, it was an invention that changed the world. But, by the 1980s, the state owned British Railways was the butt of jokes, stale sandwiches, declining passengers and closed lines. …
Nationalisation occurs when the government take control of an industry previously owned by private firms. For example, after 1945, the Labour government nationalised key industries, such as railways, steel and electricity. The argument was that the government would be able to run the industries in the best interests of society. Arguments for Nationalisation include 1. …
I’m currently reading a book Blood, Iron and Gold by Christian Wolmar about how railways transformed the world. This interesting extract from the political economist Friedrich List, explains some of the economic benefits of railways: “Railways would carry wood, turf and coal at less than half the present costs. Bavaria, where flour, meat and other …
A look at the arguments for and against privatisation. Privatisation involves selling state-owned assets to the private sector. It is argued the private sector tends to run a business more efficiently because of the profit motive. However, critics argue private firms can exploit their monopoly power and ignore wider social costs. Privatisation is often achieved …
The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through: Price capping – limiting price increases Regulation of mergers Breaking up monopolies Investigations into cartels and unfair practises Nationalisation – government …