목차 1.Private enterprise good, Public enterprise bad? 2.State vs private 3.State-ownedsuccess stories 4.The case for state ownership 5.The pitfalls of privatization
본문 Under capitalism, man exploits man; under communism, it is opposite.
☞ The key goal of the communist movement The abolition of private ownership of the ‘means of production’ such as factories and machines.
☞ Why? They believed that it was the reason for the ‘wasteful’ anarchy of the market.
However
The planned economy based on state ownership of enterprises performed very poorly.
☞ State ownership in the dock Why do the Bad Samaritans think state-owned enterprises need to be privatized? ↓ People do not fully take care of things that are not theirs
Ownership gives the owner two important rights to its property.
☞ Dispose of it.
☞ Claim the profits from its use.
Problems
‘principal-agent problem’
‘free-ride’
‘soft budget constraint’
☞ ‘principal-agent problem’
Even if there are some firms which are managed by their majority owners but most of them are managed by hired managers because they have dispersed share ownership.
☞ ‘free-ride’
Because of that, individual shareholders will not have enough incentive to monitor the hired managers like state-owned enterprises.
☞ ‘soft budget constraint’ Private firms can also expect subsidies or even government bail-outs.
When we are out to make a buck and believe in the state when we are about to lose a buck.
From foreign banker
본문내용 enterprise bad? John Kenneth Galbraith Under capitalism, man exploits man; under communism, it is opposite.
Private enterprise good, Public enterprise bad? ☞ The key goal of the communist movement The abolition of private ownership of the ‘means of production’ such as factories and machines. ☞ Why? They believed that it was the reason for the ‘wasteful’ anarchy of the market.
Private enterpr |
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