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Author Topic: There is no Free Rider Problem  (Read 301 times)

Raverlady

  • Guest
There is no Free Rider Problem
« on: July 11, 2019, 12:11:47 pm »
Everybody hates a free rider, right?  Lazy bums!  Society needs to deal harshly with The Free Rider problem!


Except, that is not what that even means.  "The Free Rider Problem" is a term from economic theory that refers to public goods.  There is no incentive in a completely free market for an entrepreneur to make, say, a public park, because as a non-excludable non-rival good, parks will not give him a return on his investment.  So, "free-riders" prevent public parks.

To which the answer is, So?  We don't rely on entrepreneurs for public parks, then.  We build them some other way, say through collective action via government.  Everyone "free-rides" at the park, but that is what it is for.  It's not a problem.

There is no "free rider" problem in society.  It's a "problem" only for "free markets," which do not exist.  So the problem does not exist.  We have parks.

Even a "freeloader," or anyone who doesn't seem to be working as hard as you, is a resource, not a drain on society.  His leisure is a net gain for the group.  There are no "useless eaters."  Everyone is a resource.

If we were a compassionate and logical society, we would understand that we must stop trying to end the welfare state.  The general welfare is our concern and promoting it creates only good, no harm.



P.S. Hi Ladies!





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