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READING COMPREHENSION (20-25)
While there is no blueprint for transforming a largely government-controlled economy into a free one, the experience of the United Kingdom since 1979 clearly shows one approach that works: privatization, in which state-owned industries are sold to private companies. By 1979, the total borrowings and losses of state-owned industries were running at about $3billion a year. By selling many of these industries, the government has been able to repay 12.5 percent of the net national debt over a two-year period.
In fact, privatization has not only rescued individual industries and a whole economy headed for disaster, but has also raised the level of performance in every area. At British Airways and British Gas, for example, productivity per employee has risen by 20 percent. At Associated British Parts, labor disruptions common in 1970s and early 1980s have now virtually disappeared. At British Telecom there is no longer a waiting list as there always was before privatization to have telephones installed.
Part of this improved productivity has come about because the employees of privatized industries were given the opportunity to buy shares in their own companies. They responded enthusiastically to the offer of shares at British Aerospace. Eighty nine percent of the eligible work force bought shares; at Associated British Ports, 90 percent and at British Telecom, 92 percent. When people have a personal stake in something, they think about it, care about it, work to make it prosper. At the National Freight Consortium, the new employee-owners grew so concerned about their company's profits that during wage negotiations they actually pressed their union to lower its wage demands.
Some economists have suggested that giving away free shares would provide the needed acceleration of the privatization process. Yet they miss Thomas Paine's point that "what we obtain too cheap we esteem too lightly." In order for the far-ranging benefits of individual ownership to be achieved by owner's companies, and countries, employees and other individuals must make their own decisions to buy, and they must commit some of their own resources to their choice.
20) According to the passage, all of the following were benefits of privatizing state-owned industries in the United Kingdom EXCEPT
Privatized industries paid taxes to the government
The government gained revenue from selling state-owned industries
The government repaid some of its national debt
Profits from industries that were still state-owned increased
Total borrowings and losses of state-owned industries decreased