Why Industry Should Be Nationalised? - Tree of Souls - An Avatar Community Forum
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Old 06-20-2010, 04:56 AM
Spock's Avatar
Ikran Makto
Spock is hopeful.
 
Join Date: Mar 2010
Location: Hamilton, New Zealand
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Default Why Industry Should Be Nationalised?

Sorry I have been absent from posting recently because I've been working on many projects like this one. I am also in the process of organising a debate with ZenitYerkes which should be up and running soon. But please, mull over my political psychobable if you want.

If any of you Anarcho-Capitalists want to debate it then prepare for a hard slog.

Why industry should be nationalised?

Just before I start, I want you to pose this question to yourself. What does nationalisation mean to you? Nationalisation basically means, government ownership, sometimes known as state ownership. This isnít a radical socialist idea, but rather some foresight on my part that utilizes empirical logic to solve practical problems in present day New Zealand. I have been meticulous in my political and economic theories as to outline areas that should be exempt from nationalisation. However, I will elaborate on how the performance of the entire country can be bolstered through nationalisation of sectors such as production, exchange, and services. I am also going to present a case against privatisation; in particular the failure of Telecom since privatisation in 1990. Quite simply, what I am trying to prove here is how the benefits of nationalisation outweigh the negatives.

Now, before I move onto anything else I want to give you an example of a sector that shouldnít be nationalised. Housing is one such example, personally I donít see how it could be nationalised, but in doing so you may be jeopardizing personal ownership. This is something that everyone is entitled to strive for.

You may ask why the health system shouldnít be privatised. One may only observe the debacle surrounding healthcare in the United States, where a 100% privatised system is in use. Very often people are forced to sell their houses simply to pay for simple accidents if theyíre lacking health insurance. Health insurance in the United States is another misdemeanour in itself. But letís not go there today. My point is; healthcare should be kept the way it is in New Zealand. Cuba, a communist country employs a universal free healthcare system. Its healthcare system is ranked one of the highest in the world. This quite blatantly shows the success of nationalisation and what it can do for key industries, specifically in the case of Cuba.

I now want to mention the energy industry; before I move onto specific benefits nationalisation could have. Amid turmoil surrounding the recent failures of British Petroleum I observed one thing inherent in most privatised companies and industries. The maximization of profit. Through this we often see a disregard for the majority; this is often seen as anti-democratic, which in fact, it is. The reason I use British Petroleum as an example is because B.P only spent negligible amounts of money on safety mechanisms as to maximise profit. It can be seen here that private enterprises actually degrade safety. This is where nationalisation could help, simply because SOEís or state owned enterprises are in the public eye. If a government makes those kinds of mistakes it risks being voted out of power come the next election. This can be referred to as the profit motive being sub-ordinate to the social one, a clear positive for nationalisation.

I also want to make a point out of Telecom, New Zealandís largest company. Telecom has seen some success throughout its privatised period, although over the last 2 to 3 years weíve seen a downward slide in Telecomís performance. This has culminated in the events of today. Repeated failures of Telecomís relatively new mobile XT network have let the company down; this is coupled with the lowest share price Telecom has seen in years. We can see further failure in a $713,000,000 drop in Telecomís profit from the years 2008 to 2009. Failure like this can hit privatised companies hard, unless theyíre bailed out by the state to avoid job losses. The government should be saving now to buy Telecom back sometime in the future, re-nationalisation as it were. Speaking of re-nationalisation I just want to point out a good decision by the labour government in May of 2008 to buy back Kiwi Rail from Toll Holdings. Toll had been asset stripping the organisation since 2003. Asset stripping is the action of selling off individual assets for more of a profit than selling the entire enterprise altogether. The enterprise, in this case Kiwi Rail, is left worse off.

My next point is one of tax burden and how nationalisation can help to lower taxes significantly. This is because of the concentration of wealth within the state if near complete nationalisation occurs. Often when a government department isnít performing well taxes will rise, itís even possible that taxes wonít rise, but some other form of government revenue will be increased to compensate, such as G.S.T. My point here is that if there is a wide range of industries and services that are nationalised then the revenue earned from the successful industries and services can be used to compensate, or even bail out poorly performing industries. This is all done internally and no extra burden is added to the taxpayer to bolster the performance of state owned enterprises.

When you vote during the elections you expect some measure of control over your means of earning a living. Nationalisation expands your ability to do this quite significantly. This is simply because the newly nationalised industries would become part of the state; this puts them in the eye of the New Zealand public. Government policy would begin to be shaped around the running of the acquired industries. This gives people the right to exercise full democratic control over state owned enterprises and industries. This isnít an option when dealing with the private sector, and if it was, it wouldnít be a very good look having the government back handing free enterprise at whim. In this instance it can be seen that nationalisation actually increases the level of democracy within a nation, something that in my opinion can only be a good thing.

Another big economic benefit to nationalisation is the concentration of wealth within the country; this promotes a local economy and inevitably will result in more jobs for New Zealanders. Often what happens with privatisation is that large companies will move in, take advantage of New Zealandís resources and ship the profits offshore while utilizing their own labour force. I ask you, how could this be anything but bad news for New Zealand industry?

So it can be seen that nationalisation of industry can have several benefits, including an increased level of democracy and a decrease in cornerstone government revenue services such as taxes. During this argument I have elaborated on the failures within the private sector and relating to privatisation itself, while also offering solutions to these failures through nationalisation. I have never maintained that nationalisation is the answer to all problems, but I believe I have provided an argument that exposes how it supersedes the current dead lock of the failing private sector. If you believe in New Zealandís future then nationalisation is the economic theory for you.
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Last edited by Spock; 06-20-2010 at 05:13 AM.
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