With the government merrily nationalising banks et al, we must remember that in the short term, this can be 'a good thing' as its aims are short term and undoubtedly this is necessary. It is quite possible that of the vast sums mentioned - much will be recovered.Nationalisation per se, is a problem, however. It is based on two false premises, the first being that the government will run a large body more efficiently and secondly, it will run it in the public interest in a way that private capital never would or could.
Why does the left make the first assumption which simply goes against all the evidence? Governments shore up failing industries which CANNOT be repaired. Consider British Steel. It was grossly overmanned and its wage levels meant that it was unable to compete internationally. This business saw countless amounts of taxpayers' money absorbed for social rather than business reasons.
In other words, there are NEVER profits to cut taxation for ordinary people. It is all theory and fails in practice.
It is this social element which wrecks the second assumption.
Nationalisation is no alternative to capitalism; it is an exercise in optimism combined with wishful thinking.
