Why Governments become involved with businesses

Control the level of economic activity

Only by creating wealth on a continuous basis can the country:

• extend the transport infrastructure, e.g. building new roads

• facilitate financial investment by companies to replace worn-out plant and premises

• improve education, health and security provision

• achieve its social, political and economic objectives

Decrease unemployment

While unemployed, people are not contributing to the country, indeed they are likely to be receivers of the government’s money in terms of unemployment benefit or income support.

Ensure that minority groups are not exploited by organisations

The Equality Act 2010 exists to regulate private monopolies.

To provide services that businesses are unable to provide

Law and order, and defence of the country - it can be argued that these types of services cannot be provided on a privately funded basis and therefore the government must be responsible for them.

Provide education, health services

Education, health services and training are necessary to ensure a healthy and educated workforce is available for companies to employ.