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OK give a single example that is not related to raw material extraction or power generation. (A company receiving massive government subsidies to not go bankrup
by qaq 9y ago
OK give a single example that is not related to raw material extraction or power generation. (A company receiving massive government subsidies to not go bankrupt would not be considered a good example at least in my opinion.)
- Daishiman 9y agoMost European public transportation companies have a majority stake by the government, and they work exceptionally well in executing their mission. A huge amount of banks are government-owned and they're as profitable as their private counterparts. There's a huge number of examples (https://en.wikipedia.org/wiki/List_of_government-owned_companies https://en.wikipedia.org/wiki/List_of_government-owned_compa...).
- qaq 9y agoMost public transportation companies are subsidized. I never dealt with gov. bank that was run well but there are might be some that are. I def never heard of gov. owned software company that was doing well though.
- BerislavLopac 9y agoThat is the whole point. State-owned companies make total sense when their goal is to ensure some common benefit (like mass transport, public utilities, health care etc), as opposed to making profit. With that in mind, subsidies are logical, because the alternative is to have a purely state-owned system (like police or military) which has no income except for government subsidies. Essentially, if you think of government subsidies to private companies as assistance in making profit (which happens often when a government wants to promote a certain industry, even if it's only in form of a tax cut), having commercial companies to take care of common utilities is a way to assist the government paying for those utilities.