Some Ideas Regarding Nationalization

Zero Lost is Zero Cost

1. If a person is made unemployed in a country where everything is owned by the state then any unemployment benefit they are given is spent upon the state, thus the money given to them by the state just goes back to the state. Unemployment benefit would cost the state nothing.
2. Similarly other types of benefit would take nothing away from the state. Housing benefit, for example, would be spent upon state run electricity companies and state run building firms, state run repair companies etcetera, thus going right back into the state.
3. Nationalization means lower Taxes; lower Prices and the money comes back to you: If lots of money is going directly into Nationalized industries that means a state doesn’t have to tax people as much which would include things like Value Added Tax and that would mean lower prices; furthermore, if everyone is working for the state, any tax that they do pay will ultimately come back to them in one shape or form; through their wages; benefits; pension etcetera.
4. So you see, within a state owned economy money is never lost; it never leaves the system, it just circulates but with Privatization, money leaves the system when it goes into private hands. Basically, Privatization is like a severed artery which money like blood leaks out of; Nationalization is like a healthy cardiovascular system through which money, like blood circulates.

5. Also: Competitive Nationalization and The State Salary Incentive: Imagine that all competing companies were owned by the state; not just one state owned company providing services like British Rail or British Telecom, but all thecompeting companies, for example, say that Mc Donald’s and Burger King were both owned by the state. If a company underperforms, the state shuts it down, sacking the director of the company and taking away his large state paid salary, therefore all the competing state owned companies are competing for survival; only the companies that provide the best service survive but as I said, since the government employees running the companies have large salaries they have an incentive to make their companies better; they don’t want to lose their jobs.

6. In fact, this form of incentive could work at every level; even if every company is owned by the state people could still compete for a better state paid salary (to buy a bigger state built car and a bigger state built house); they would still chase promotion; they would still compete just like in a capitalist system but the money would always go back to the state rather than into private hands.

7. Also Property rented off the state can’t be theft or “A Different Kind of Rich”: Say that a wealthy state employee with a large state paid salary, rather than owning a mansion and a limousine, rents them from the state; then he gets to live in a mansion and ride in a limousine but money is still going back to the state. Ultimately, though he may appear wealthy, he owns nothing. Similarly celebrities, actors and popstars can receive bigger state salaries to pay larger rent on more luxurious properties; they would still have a rich lifestyle but since they are renting property from the state rather than owning it their money goes back to the state.