I blame this on the lack of economic understanding in general public. Take power generation example. If there are no entry barrier and no price caps, then high tariff will incentivize investments in power generation, therefore satisfying the demand and bringing the prices down over long term. On the other hand, entry barriers and price cap leads to lack of investment in the sector which results in sustained power shortage in the country. The public gets misguided by the politicians claiming price caps are necessary to save them from profit gouging capitalist. It is a true statement. Capitalists work for profit. Investors invest for returns. It sounds good in theory that PSU which don’t care about profits will serve the nation better. But in practice, socialism never works. After all, even PSU is run by people, and these people are not saints. If they don’t have any personal incentive to perform then why would they work hard. Furthermore PSU have an absent owner. Which means there is nobody to check if the PSU employees expropriate its capital leading to widespread corruption.
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