Sunday, August 14, 2016

The Free-Rider Problem and Public Bads

Far from producing "public goods" by eliminating the free-rider problem, the state actually produces an unprecedented "public bad" by creating a particularly dangerous category of free-riders - net tax consumers - who can not only free-ride on the efforts of producers, but also coerce the latter to fund their free-riding indefinitely. And if this were not bad enough, the things that can be financed exclusively via such free-riding - wars, conquests, "public school" indoctrination, special interest legislation, etc. - are major "public bads" in themselves.

In other words, the most essential public good is freedom from the peddlers and implementers of the public goods story.

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