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aleksley [76]
4 years ago
5

Why would any government choose to participate in "ash-can socialism"?

Social Studies
1 answer:
elixir [45]4 years ago
4 0
'Ash Can Socialism' is when a government takes over the management of unprofitable industries who are facing a tough time due to competition, changing technology, emerging trends and general market changes.

In a perfect capitalist society, many would argue its better for an industry or an organization to fail to pave the way for the future. However, there are many reasons to actually participate in Ash Can Socialism:

1. An Industry supporting thousands of jobs

2. An Industry supporting the socio-economic make up of a region

3. An Industry with a strategic long-term importance for a country

4. Huge ramifications that could occur if the industry fails

In history we have seen Washington government bail out Detroit Car manufactures, the British government bailing out banks and actually owning a stake in them to control them better.

In the United States, very recent examples can be President Trump's promise to keep coal mines open to support rural American communities.


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