why would a government wish to privatize its state-owned industries?

Question

what are the advantages and disadvantages for the government, workers, taxpayers, consumers and shareholders if the state-owned industries are privatized?

Answer 1

The hope is that in the long term money will be saved, that greater efficiency will come from the for-profit motivation, and that waste will be cut. Also, the private industry might have to pay at least some taxes. (probably, but not necessarily).

How it often has turned out (at least in the US) is that services are cut, the government ends up paying more for to accomplish the same service but done less well & the bottom line drives the search for profits, not necessarily efficiency.Workers get paid less & lose their benefits & seniority.

Alot of this sort of thing happened during the Reagan Administration. There was very little to no oversight over the new agencies; this may have heavily contributed to their lackluster results.

Overall, privatization has proven to be a big dissappointment, at least in the US.

Interesting question.

;-)

Answer 2

The largest advantage, the private sector will run the industry looking for profit$. The IMF and the World Bank will both be happy.

Answer 3

there are a number of issues between the substantial issues is that, while inner maximum, those agencies can lay off people who have been in any different case certain a place to artwork, and could make different judgements which could impact the way the employer works, which, contained with reference to practise or well-being care, could have a extensive result on the country

Answer 4

To generate money, and get rid of loss making industries, which is a burden on the tax payer.

Answer 5

It will take the some tax burden off the working class, and make employers step up with better benifits.