This idea works well in Large countries, however in smaller countries with room for only a few major players. The companies get together and collude the prices well beyond a reasonable market price, and even well beyond a government business price. And the services often degrade rather than improve.skywalk wrote: The test of the free market is the truest.
Now, go back and create more ideas and products and let all the world decide its value.
For instance what we saw in Australia when the telephone system was privatised, was most people thought the cost of calls would come down, instead because its a small market the costs went up dramatically. The power companies are also being progressily privatised and the cost of power in Australia where this is happening is rising dramatically. The government bank was privatised and although there were already private enterprise banks in the system, without a government bank to keep them honest, the cost of banking fees skyrocketed. Interestingly in all of these utilities the government operations were profitable, now of course they are astronomically profitable.
So what suit one country won't necessarily suit another. I think the main thing about any government system is that it is democratic. There has never been a problem with having a socialist or a capitalist government if the people can vote them out of office. As long as the process is democratic the people can vote in the government they want.This usually comes down to the constitution of the country involved - or at least some equivalent.
