Check over concentration of economic power

The public sector also acts as a check over the concentration of economic power in private hands.

The danger in the private sector

• Only a few industrial houses are willing to invest in heavy industries.
• As a result, wealth gets concentrated in a few hands, monopolistic practices are encouraged, and this leads to inequalities in income that are harmful to society.

How the public sector helps

• The public sector can set up large industries requiring heavy investment.
• The income and benefits these generate are shared among a large number of employees and workers. …