So, I took part in a discussion on Call Kaye @KayeAdams on BBC Radio Scotland this morning.
It was about the news that (Glasgow!!!) Prestwick Airport (has it been taken over by RyanAir?) is about to be nationalised as it is losing lots of money.
My arguments against nationalisation were:
1. There are 5 major airports in the South East and 15-20 million people. There are 3 in the Central belt and less than 3 millions…
2. There are 2 reasons why businesses fail:
• Management and unions are rubbish
• Demand for the organisation's goods/services is low
I can't comment on #1 but we know the sales have been falling and Glasgow Airport (a proper title) has been taking business from Prestwick. If it cannot succeed then let it fail.
1. I am fed up with politicians using OUR money for their own political ends. We all pay for it in the end – including the workers who keep their jobs.
2. When in history has a nationalised business ever succeeded? Never!
3. When it goes bankrupt capitalism will step in. Someone will buy at 25p in the £ and will have the money to invest and cut prices etc. It can then grow and be profitable.
So, out came the Socialist replies.
• Save the workers' jobs – covered above
• Nationalisation can be successful eg Scottish Water. What competitors does it have? None!
• We can invest. Well, 1. Who can invest? We??? 2. Do you not think the owners thought of that? They decided it can't pay based on what they've already put in. They don't create money out of thin air. Unlike banks and politicians.
• Prestwick has a long runway for 747s. Well, why don't airlines use it??? Derrr…
• It has a railway station. So what??? If that was so great why aren't people using it etc.
• Someone should change the marketing – Yes that is what they said.
• Someone should do something – Why? What?
Let it fail. Let Capitalism work. Let the shareholders go bust. It'll go into receivership. Most of the workings of the airport will continue. A new buyer will come who will buy at a sensible price.
No, no, let's instead borrow from our kids. Buy at top price from the current shareholders. Run it from Edinburgh by non capitalists and the union members/leaders will have a field day/year/decade.
Another good idea – let's hand £1,000s of Billions and £100s of Billions p.a. to bankers and pretend it's for the good of society.
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