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Capitalistic Economy Ownership

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One of the basic premises of a capitalistic economy is the ownership of private property. This includes the ownership of private companies, in part or in entirety. What effects can the ownership of a significant part of a private firm by the government have on the firm's decision-making process and on the economic system in general? Explain your answers with examples.

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Since the guiding principle of capitalism is that of individual rights where individuals are free to compete and profitably gain from production, when government is directly involved on firms' decision-making process and on the economic system in general, it politicizes the operation of such firms. Note that capitalism permits the individual towards private investment, while the government usually acts in the best interest of the majority. Where there is generally no government intervention, capitalism thrives by giving provisions to individuals to own as well as utilize wealth any ...

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Capitalistic economy ownership is examined.

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