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Nationalization may produce other effects, such as reducing competition in the marketplace, which in turn reduces incentives to innovation and maintains high prices. In the short run, nationalization can provide a larger revenue stream for government but may cause that industry to falter depending on the motivations of the nationalizing party. [9]
However, Japan's government engages in much less redistribution because its initial wage distribution is much more equal than Western economies. Likewise, the socialist planned economies of the former Soviet Union and Eastern bloc featured very little income redistribution because private capital and land income were restricted.
Permanent nationalization therefore may lead to lower and more rational risk levels in the financial system. Permanent nationalization also provides the government with profits, a source of income – other than taxes – which can be used to recoup losses from past bailouts or to build a reserve for future bailouts. [21]
The White House and Treasury Department may decide to convert the government's existing loans to the nation's 19 largest banks into common shares, just like it did with Citigroup (C), in order to ...
State capitalism is an economic system in which the state undertakes business and commercial (i.e., for-profit) economic activity and where the means of production are nationalized as state-owned enterprises (including the processes of capital accumulation, centralized management and wage labor).
In terms of actual money, this translates into average non-income holdings of $2.3 million per rich person, $291,000 per upper class person, $106,000 per middle class person and $22,000 per lower ...
In 1964, the effective capital gains tax rate was 25%. This means that the actual tax percentage of all capital gains realized in the U.S. in 1964 was 25% as opposed to the nominal capital gains tax rate, or the percentage that would have been collected by the government prior to deductions and evasions. [49]
Government spending on just about any area of government; Monetary policy controls the value of currency by lowering the supply of money to control inflation and raising it to stimulate economic growth. It is concerned with the amount of money in circulation and, consequently, interest rates and inflation. Interest rates, if set by the Government