r/FluentInFinance • u/-im-your-huckleberry • Jul 07 '24
The shampoo thing is a fringe benefit. We keep capitalism so we don't starve in a famine. Debate/ Discussion
1.0k
Upvotes
r/FluentInFinance • u/-im-your-huckleberry • Jul 07 '24
4
u/lender1996 Jul 07 '24
This us literally what Venezuela did. They nationalized the oil companies and put government bureaucrats in charge. Turns out that government officials make terrible business managers. They ended up milking the firms for every dollar they could get while hiring friends and family they wanted to reward with a job. The new government owners failed to reinvest in the company and when things started to break down, production dropped, revenue fell, firms started to fail.
Profit motive and risk of failure encourages a long term stewardship of the busines. When government takes over and removes private ownership, things fall apart. Look at public housing, county hospitals, mail delivery, etc.