Answer to Question #41413 in Macroeconomics for dan
arguments in favour of privitisation include:
Economists offer several arguments in favor of transferring government run firms to the private sector:
- Opening up production and consumption to market forces increase competition, economic efficiency and consumer choice. - Breaking down monopolies into more competitive industries introduces competition into the goods markets. - Enables the privatized firms to compete for finance on the private capital markets both home and abroad. - Ensures that firms become accountable to their shareholders and their desire for profit. - Ensures that businesses are run on commercial rather than political grounds. - Reduces the burden on the government's finances to support nationalized industries.