Sunday, October 13, 2013
World of Finance: Nationalization vs. Privatization-3
So when some industry is nationalized the initial celebration becomes a chance to become complacent since the workers know that their jobs are protected and that is the biggest issue with nationalization. Most of the people are afraid to lose their jobs and rightly so and they use every tactic in the book and outside it to be avoid being sold to private investors who may come and start taking decision which may be in the interest of the business but not necessary in the interest of the workers who more or less may feel threatened about the change. I have seen in industries which have been nationalized that they are less efficient and the workers take their own sweet time to attend to the needs of the general public. It is not in all industries but some really become dinosaurs and become a drag on the economy as the government has to put money into it to sustain them to barest minimal levels in order for the workers not be thrown out of a job. If you see and have visited any government place not necessary for some law requirement, you see that how slow the function works. It is because that the people working there don’t fear of losing their job and also believe that people will come to them anyway because they don’t have anywhere else to go. But if you see some industries where there is the slightest bit of competition, the places which have been nationalized have the least productivity and the workers have no incentive to improve upon the productivity since their jobs are secure.