Renationalization
Categories: Financial Theory
Argentina, creator of Argentine Tango. That’s one place they’re smooth. One place they weren’t smooth? Renationalization. Don't cry for them.
Argentina had many nationalized industries, meaning they were run by the state (“state,” as in government). In the 1990s, all those crazy colors, haircuts, and dance moves got Argentina thinking, "hmm, maybe we should privatize some of this." So they did. Transportation (roads and rails), communications (phones, TV, ratio), manufacturing (steel and electricity), finance (lending, mortgages), and more were privatized. Like baby birds leaving the nest for the first time. A lot of them.
And a lot of them were pretty bad at flying. Mom didn’t really show them how. In the early 2000s, Argentina renationalized many of these industries. Back to the nest you go, little birds.
So yeah...renationalization is when a country does take-backsies on privatizing industry. That means that the industry was controlled by the state, then privatized, then controlled by the state again.
Shareholders of renationalized Argentinian industries were not happy. They invested money into these newly privatized industries, only to have shares reclaimed by the state later with renationalization.
Related or Semi-related Video
Finance: What is nationalizing a company...1 Views
Finance a la shmoop what is nationalizing versus privatizing a
company? all right well first you get a lot of flags you wave them around and [Man waving flags]
repeat like sheep the government can run this airline better than private
industry the government can run this oil well better than private industry the
government can run this school system better than private industry.... and [Man waving flags shouting government chants]
you say it all blankly bleedingly like the four-legger in Animal Farm
well nationalizing a company happens when a government essentially seizes
control of that company or even that industry and just plants a flag in it
claims they own it you know like we own Mars or whatever and then they run it [Astronaut on mars with aliens]
meaning that whoever the voters were who put those government officials into
power often you know the biggest union in that hood then run and control that
company well the United States has flirted with nationalized Airlines a few [Uncle Sam flirting with nationalized airline woman]
times it did so in the 70s when Airlines went bankrupt more times than planes
crashed and it was a complete disaster surprise surprise and after losing
enough billions of dollars at least more than it could stomach the government [Money goes down a toilet]
privatized the airlines again selling those airlines back to private industry
where the best and brightest worked more than thirty eight hours a week and
actually answered their email in less than six weeks a year of vacation that
they took key idea nationalizing government seizes control and runs
privatizing; government sells control and taxes profits how do you avoid this yin
and yang of torture? well find careers in industries that are far far away from
regions where the government gives a rat's derriere [Boy at a lemonade stand]