Also, there are some instances where government ownership is not only defensible from an economic standpoint, but preferable. Utilities and infrastructure are the obvious examples, but Henry Calvert Simmons (one of the fathers of the Chicago School and one of Milton Friedman’s professors) made the argument back in 1934 that any industry which cannot be made properly competitive should be nationalized.

Natural monopolies!

Things get weird when you realise that increasing centralisation and economies of scale could result in a whole lot more things being natural monopolies than we would normally expect.

Time to break up Google and Amazon, I reckon.


The California water crisis would be a whole lot easier to solve if the water was sold on a free market basis, allowed to rise in price so the farmers would switch to less water-intensive crops.

Technically a government run natural monopoly can still charge a market price, eg. by auction where people can bid it up, where that makes sense.


They don’t.

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