Tata Steel to sell UK all assets

[Jacktari]

Well...Being in the industry myself. Tata sold off Scunthorpe steel works, and already is in profit as British Steel. So it makes me wonder if Tata were deliberately running these places at a loss.

 

Can't imagine why though.

 

I remember reading somewhere, that sometimes it is in the owners interests to run some things at a loss, as the rewards from other connected sectors are greater.

 

As an example, you run your car at a loss to enable you to get to work, from which earn you a greater amount of money.

 

That is why governments sometimes run industries at a loss, as the returns from tax and other sources more than makes up for it.

Keynesian it is called I think, from Maynard Keynes, a famous economist from the 1930's.