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Improve the country in one year. Part Two.



Leekbrookgull

Well-known member
Jul 14, 2005
16,237
Leek
Moving on from the original thread,there are a few posts reguarding re-nationalisation. Now several poster's here work in the 'City' so putting your politics to one side what are the real implications of any UK Govt going down that route ? :facepalm:
 


Herr Tubthumper

Well-known member
NSC Patreon
Jul 11, 2003
59,198
The Fatherland
Why have you singled out "city" workers?
 


jgmcdee

New member
Mar 25, 2012
931
Depends on what you are renationalising.

First off is your cost to buy whatever it is back. you can either go the traditional capitalist route and pay current market cap + 20% or so, or the traditional socialist route and just take it back.

Secondly you have to run it. Honestly, having seen many public and private companies in my time I'm convinced that costs, efficiency and bureaucracy are directly related to the size of the company and very little to do with the particular ownership model. The only real differences would be that the profits, such as they are, come back in to the public purse and the additional costs of R&D/infrastructure would be beholden to political will rather than that of the directors.
 




beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,264
the basic problem of renationalising, aside from upfront costs, is that the industies involved still cost alot to run. those keen to renationalise like to focus on the dividend going to investors, but they ignore the captial investments made, usualy from profits or otherwise from those investors. a nationalised utility still has to find the money to invest and if they are subsidising customer bills they have to borrow from the public purse. The cost of that is either borne from general taxation or, more likly, from bonds. so the government has to increase its debt and still pays for the money from someone else. thats why they where privitised in the first place, to get the debts off the nations balance sheet.
 



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