Government Intervention (Source)
To correct for Market Failure the Govt will often provide goods and services directly. These services will be free at the point of use and paid for out of general taxation e.g.- National Health Service,
- Education,
- Training,
- Waste disposal
The Reason for Govt Provision is
- Merit Goods: people do not realise or underestimate the benefits of education or health
- Positive Externalities. The consumption of health care services has benefits to the rest of society. Therefore will be underprovided in the private sector.
- Economies of scale in providing National Service
- Providing an universal service leads to greater equality of distribution. In a free market some would be unable to afford to pay.
- Minimum Service Standards: important for public services such as health. The private sector may cut costs by cutting quality of products
Top businesses have spoken out about the damage that a heavy-handed government clampdown on foreign takeovers is likely to inflict on the UK’s interests at home and overseas.
Corporate giants including Rolls-Royce and Samsung have expressed their fears that new powers to block foreign bids will be at the heart of Theresa May’s pledge to create “a proper industrial strategy to get the whole economy firing”.
The warnings came in dozens of submissions on the UK’s industrial strategy to the newly created business, enterprise and industrial strategy committee (BEIS). The department issued a request for written evidence from more than 170 businesses and trade bodies as the Government looks to draw up a new blueprint for British industry.
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