Map of ct for The ownership of the factors of production should belong to the private sector. The size of the government should be minimized, leading to lower taxes and lower government spending. This paradigm is supported by the neoliberal economic theory, which argues that state-owned economic enterprises are inefficient. According to this theory, publicly owned enterprises lack the profit-maximization orientation and entrepreneurial incentives of private enterprises, and would lead to production decisions dominated by political interests that misallocate scarce resources. In addition, bureaucratic inefficiencies and the politicization of economic activity would cause a lack of transparency and accountability in the public sector, very often culminating in corruption. The de-emphasis on profitability means that the public sector losses would need to be covered by the state budget, potentially leading to large budget deficits and ultimately to the crowding-out of the private sector in the economy. The neo-liberal argument assumes that private ownership of property rights provides the necessary incentives for maximum efficiency and profitability. Map of ct 2016.