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Distribution of Public Goods

Chang29
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10/22/2016 8:11:41 AM
Posted: 1 month ago
Distribution of Public Goods

To start some definitions:

Scarcity is the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Types of goods:

Some definitions to explain types of goods are rival and excludable.

A rival good is a type of good that may only be possessed or consumed by a single user. Using a rival good prevents its use by other possible users.

An good is excludable if it is possible to prevent people (consumers) who have not paid for it from having access to it. By comparison, a good or service is non-excludable if non-paying consumers cannot be prevented from accessing it.

Private goods - rival and excludable

Club goods - non rival and excludable

Common resources - rival and non excludable

Public goods - non rival and non excludable (does not mean provided by government)

To reduce scarcity problems, goods are exchanged between people. The exchange of goods can occur voluntarily or violently. Most civilized people will agree that voluntary exchanges are the best method of distributing goods, whether by markets, charity, communal living, or other ideas. Some types of goods cause challenges to voluntary exchanges but with economics people should be able to keep interactions peaceful. Yet, for many people their first reaction is to bring violent government action to influence these exchanges.

How can public goods be distributed with the least threat of violence?
A free market anti-capitalist

If it can be de-centralized, it will be de-centralized.