These dividends are instead channeled to wealthy individuals. Short Term view A government many think only in terms of the next election. The government might also have used the airline as a source of jobs for people from underprivileged groups. By privatizing, the government gives up the ability to use the airline in these ways. For example, in the case of health care, it is feared privatising health care would mean a greater priority is given to profit rather than patient care. For example, the UK is suffering from a lack of investment in new energy sources; the privatised companies are trying to make use of existing plants rather than invest in new ones.
All Rights Reserved. On the bad side, the government is no longer able to use the companies to pursue political or social goals. Government will raise revenue from the sale Selling state owned assets to the private sector raised significant sums for the UK government in the 1980s. 2. message . Privatization urges improvements in the company through competition. Improved efficiency The main argument for privatisation is that private companies have a profit incentive to cut costs and be more efficient. I need to.
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