Policy Analysis: An Introduction - Public or private policy - arguments for the public sector - Arguments for a public government

9 important questions on Policy Analysis: An Introduction - Public or private policy - arguments for the public sector - Arguments for a public government

Why is there a need for a public government?

  • Keep peace (watchman state)
  • Avoid exhaustion of 'common-pool' resources (regulation state)
  • Secure production of collective goods (facilitating state)
  • Divide wealth more equally (social welfare state)
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Why do people accept limited freedom and the obligation to pay taxes?

Because the state will maintain peace by settling conflicts and punishment
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What is the definition of non-rivalling consumption?

Consumption of a good does not reduce the availability of the good to everyone else
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What are common-pool resources?

Goods that are non-excludable (non-paid) and rivalling (raakt op)
Examples: visvijver, hout, gas, kolen
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What is a regulation state?

A state wherein regulations and corresponding institutions directed at preserving and fair sharing of resources
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What are examples of collective (public) goods?

  • Infrastructure for the economy
  • Security
  • Defence
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What is the function of a facilitating state?

Investing in collective goods (are free so no other producers) which stimulates wealth
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What are the results of not equally divided wealth?

  • Inequality in income
  • Threatens health
  • Social instability
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What are the actions taken to divide wealth more equally?

  • Sociale rechten (artikel 1: freedom)
  • Equality before the law (artikel 1)
  • Social security
  • Educational structure (lack of education is cause of poverty)
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