What are Social Goods?Social goods are those that could be paid for privately, but are provided for by the state for one reason or another.Problems with social goodsCash is better than the social goodWould you rather have voucher to buy clothes at a particular retailer, or would you rather have the cash value of that voucher. You would always choose cash. Because with the cash you can choose to go to that outlet, or you can choose to go to another outlet, or not to buy any clothes at all. Having cash is superior to being given the product or voucher for it. The same is true for public goods, the Government can give you the cash for your expected healthcare, or the healthcare direct. If the government gives you the cash, you can choose to buy a cheap insurance policy and take better care of yourself, making you and the economy better off! This means giving people the cash is better for the government as well as the citizen. Effectiveness of social goodsQuote 807“Both theory and history demonstrate that food production is simply too important to be left to a coercive monopoly. The more vital a good or service is, the more dangerous it is to let it be produced by a coercive monopoly.” -- Randy BarnettLinkshttp://www.bbc.co.uk/news/uk-politics-20141443 Free services Reference |
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