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Nationalization

Definition

Nationalization is the process through which a government takes control of privately owned assets, industries, or services. It involves transferring ownership from private individuals or companies to the state/government.

Analogy

Imagine you have been running your own lemonade stand successfully for years when suddenly the government decides to nationalize it. They take over your stand without compensation and start managing it themselves.

Related terms

Command economy: A command economy is an economic system where all major decisions regarding production, distribution, and pricing are made by central authorities (usually the government). Private ownership is limited.

Expropriation: Expropriation occurs when a government seizes privately owned property for public use without consent but with compensation. This can happen during times of national emergency or for public infrastructure projects.

Socialism: Socialism is an economic and political system where the means of production, distribution, and exchange are owned or regulated by the community as a whole. It aims to reduce inequality and promote social welfare.