Quote:
Originally Posted by smallpox
Protection of supposedly infant industries can be achieved through certain subsidies and tax breaks. Nationalizing does not help in the long run -- most developed economies are trying to de-nationalize their industries for a very good reason.
Nationalization is inefficient, and ultimately hurts the low skill labour the most.
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if a nations industry is in the hands of an elite that have second homes in miami to fall back on, only the benefit of few is pursued and a firesale is an option. it is the biggest theft to block your own nation to enjoy the benefits of having an industry.
privatization hasnt helped in the long run for many countries in latin america, their choice of privatization is an internal affair and theirs only to deal with'
industry subsidies backfired in argentina for example, where manufactorers got lazy and outcompeted. it is not an alternative.