Global Rise in State Ownership

An editorial opinion piece discusses a global trend of governments increasing public ownership of private companies, ranging from modest equity stakes to outright nationalization. The article cites the U.S. government taking equity stakes in dozens of companies across critical minerals and semiconductors, and UK Prime Minister Andy Burnham's intention to renationalize previously privatized utilities such as water, electricity, and transportation. It notes that assets worth up to half a trillion dollars have been nationalized globally in the past decade. The piece argues that public ownership is generally a mistake, leading to inefficiency and underperformance, and advocates for arms-length regulation and private enterprise instead. It attributes the trend to concerns over supply-chain resilience, national security, deindustrialization, and perceived profiteering, exacerbated by the COVID-19 pandemic and conflicts in Ukraine and Iran.