Governance‎ > ‎Fiscal policy‎ > ‎Tax‎ > ‎What does tax pay for?‎ > ‎

Social goods


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 goods

Cash is better than the social good

Would 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 goods

Quote 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 Barnett



Spectrum
We should take everything the government does, put it on a spectrum 
Services the government pays you to take
Services that are free
Services that are subsidised
Service is free market
Services at cost
Services taxed


Then a similar thing for 
Activities criminalised
Activities Banned
Activities licenced
Activities looked down on
Activities free from interference
Activities encouraged
Activities mandated

Then work out if items should be in tha t category due to objective criteria,

Links

Link394 Free services

Reference

Comments