Check Over Concentration of Economic Power
The public sector serves as a check over the private sector. In the private sector, the willingness of the industrial houses to invest in heavy industries is lesser as people fear the wealth gets concentrated in a few hands and monopolistic practices are encouraged. This gives rise to difference in income, which is detrimental to society. The public sector is able to set large industries which require heavy investment and thus the income and profits that accumulate are shared by a large of number of employees and workers. This precludes concentration of wealth and financial power in the private sector.