| 单词 | state enterprise |
| 释义 | state enterprise A firm founded on the initiative of the state and run by it. The argument for state enterprises is that there are some activities which would be socially beneficial, but are not attractive to private entrepreneurs, and others which would be profitable but involve natural monopoly and are therefore not to be trusted to private owners. An example of the first category would be factories to employ the disabled; of the second, provision of essential public services such as sewers. The argument against state enterprise is that as an owner the state provides a too soft budget constraint, and that the running of state enterprises is liable to capture by their management and workers, who run the business for their own benefit rather than that of the public. It is thus argued that it is better for the state to privatize such firms, subsidize them where necessary, and appoint regulatory bodies to supervise them, rather than running them itself. |
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