Arguments for state ownership of business undertakings.
- They promote general welfare of the public by providing social goods such as medical facilities, sewerage, etc
- Avoid wastage and inefficiency since some establishments are nationalised to avoid duplication.
- They encourage private investment in activities which require heavy capital but take long to bring returns.
- They provide services to the public at fair prices since the interest of the public is the main consideration.
- Encourages democratic control through the state and local authority and profits are not to a limited number of shareholders.
