What are the advantages and disadvantages of a crown corp?

Answer 1

the advantages of a crown corporations are protecting national interests (a countries goals and ambitions whether domestic or international) to protect industries deemed vital to the economy - which is basically safeguarding the industries that bring in the most revenue to the country (example of this would be CBC, Canada POST, LCBO ETC...) it provides special services that couldn't be provided by private businesses because they wouldn't be able to access the kind of capital etc... and because they nationalize industries that are considered "natural" like bringing hydroelectricity across Canada etc.

The negatives are all the government assistance crown corporations receive such as bailouts and subsidiaries

the argument against receiving government assistance is that if a business is doing bad there's a reason for that and rather to make tax payers pay money for a business that has little relevance to them they should be allowed to fail and this saves governments money..... it's basically a drain on public funds. In the case of subsidiaries is that this is a form of creating unfair competition.

the arguments for receiving government assistance is:a government would ususally enter a bailout if the failing company is very large company and if it fails it would definitely impact the economy sort of like the auto industry and GM& Chrysler the other argument is that they are needed to protect jobs because these jobs are vital to the economy b/c the consumers who have these jobs spend a lot of money on a wide variety of stuff.

I hope this helped... I'm Muslim-Canadian so if you're from Another Country just substitute w/e country you're from with what I've said :)