"The corporate cure is always the same—lay off workers," said one critic. "Stock buybacks and layoffs are joined at the hip. It's time they were outlawed entirely."
Western governments don’t want ownership. Politicians see ownership of capital assets as political liabilities. They require real labor and talent management and long term maintenance and planning. Western governments want kickbacks from successful privately run enterprises (or, at least, profitably run businesses) in the forms of employee income taxes, which can be turned into sinecures and patronages for their underlyings.
Nationalization is antithetical to how a modern western politician succeeds in their positions.
In Europe we have seen banks nationalized, politically appointed people put in charge. The banks managed back on track and now slowly sold back into the market again to make up for the loss. The shareholders got nothing when the banks where nationalized.
If the government needs to step in, they need to make sure they get ownership. Take it off the market. Shares should just become worthless.
Western governments don’t want ownership. Politicians see ownership of capital assets as political liabilities. They require real labor and talent management and long term maintenance and planning. Western governments want kickbacks from successful privately run enterprises (or, at least, profitably run businesses) in the forms of employee income taxes, which can be turned into sinecures and patronages for their underlyings.
Nationalization is antithetical to how a modern western politician succeeds in their positions.
In Europe we have seen banks nationalized, politically appointed people put in charge. The banks managed back on track and now slowly sold back into the market again to make up for the loss. The shareholders got nothing when the banks where nationalized.
Sounds nice.
And that’s how you permanently destabilize a market economy!
What’s it called when private equity steps in, buys it and then starts selling off chunks of it?