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What's the difference between state provision and nationalisation?

I can't figure it out please help.

Also if i were to say the NHS is provided by the state, would that mean it's been nationalised?
Reply 1
Avatar for shan.17
shan.17
6
Provided by the state isn't the same thing as being nationalised. The UK is a free market economy meaning that the price of everything is determined by competition between business which makes it less dependent on the welfare state for things like fixed funding. But anyways. The NHS is supposedly nationalised in a free market economy because its run by the state through shared funding. So although everything else is sold off to private companies and then being run like businesses, the NHS remains free and available to every UK citizen because it is publicly funded by us AND some funding from the government. The tax we pay on our wages (national insurance) goes towards the NHS when it comes to our own health and therefore it can continue to be free. The only reason its "state controlled" is because its more convenient. I mean....if you were dying with a stab wound and in extreme pain, the last thing you'd want is for someone to come up and ask you "what hospital do you want to go to? or what hospital does your insurance cover?" instead you'd want immediate medical attention from whatever's close by as long as you survive right? The NHS being run by the state helps with that because if you called an ambulance, you'd get taken to your nearest or the main hospital in your area.

Provided by the state is something different. It means the government single handedly is funding something so that others can use it for free. So the NHS wouldn't be considered as being "provided by the state" because it runs on both gov money and money through the taxes we pay.
(edited 1 year ago)
Reply 2
Avatar for KH29
KH29
12
Original post by omgggggggggggg
I can't figure it out please help.

Also if i were to say the NHS is provided by the state, would that mean it's been nationalised?


State Provision is when the government enters the market and provides all the resources.
For example, the Network Rail (operated & owned by the Department for Transport) provides all the rail tracks, depots, platforms, signals, bridges & tunnels for private rail operators & consumers to use. The government will provide the resources for free.

*You can show State Provision on the diagram, by showing a vertical supply curve and a downward sloping demand curve. Price will always equal 0. Excess demand is visible in the market.

Nationalisation is when the market is in the hands of the state.
For example, the National Health Service (NHS) is in hands of the government is funded by the British Taxpayers. Other examples of nationalised assets includes ; BBC, Education, Buses (Local / Regional Authority).

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