Public goods are defined as products or services, which other people benefit from without paying for it or giving anything in return. It has two different aspects namely: “nonexcludability and “nonrivalous consumption”.
Nonexcludability pertains that all people even though there are nonpayers are still included in receiving and enjoying the benefits of a good or service. On the other hand, nonrivalous consumption means that even if some people will pay for a good or service, non-payers will still benefit from the public goods. An entrepreneur who decided to conduct a firework show could exemplify this.Since the fireworks are held in the field, most people would want to be a “free rider” wherein they would let other people pay while still enjoying the entertainment coming from the show.
Even if the entrepreneur decided that the fireworks will be done in an exclusive field wherein people should pay the corresponding entrance fee to watch the show, the fact that firework show would still be seen by other people who are not in the field without jeopardizing the capability of those who pay in enjoying the show describe nonrivalous consumption (Cowen, 2002).Simply put, public goods are products or services that people can avail without shedding any penny and does not reduce its availability for others consumption and no one can be excluded in using the good. Public education, health and welfare, roads and other infrastructure as well as domestic and national security often exemplify public goods. However, citizens pay for this through there taxes. These services are considered as public good because all people could avail of its services without excluding anyone.
Government has an essential role in creating and establishing public goods but this is not always the case as their goods that already exist naturally. Good examples of such are the air that people breathe, the water they drink, the light from the sun as well as other gifts of nature that enjoy without paying for it. A traffic sign could further discuss the principle that public goods are based on. These signs are always in the view of the public whether an individual knows how to drive or not.
No one is excluded in looking at it. Regardless of how many people see it in a day, its value does not diminishes and it also does not limit other people in using its purpose. If for example, some people will be excluded in looking at these traffic signs, more harm rather than good will take place since almost all people need traffic signs especially when their driving and even those pedestrians also have to be aware of it to protect themselves while they are crossing the road (Drexel edu. , n. d. ).
As such, this only shows that public goods should be consume by all people as it contributes to the well being and order of things besides limiting it to a few people would be inefficient and costly (Kaul, 2000). However, there are also cases wherein the public’s access towards this kind of goods becomes detrimental to other people. This is often observable in the use of natural resources. Some people become complacent with the fact that they could consume public goods freely that they also lost the sense of discipline and concern for other people who also avail of these goods Cowen, 2002).For example, the pollution of the environment is brought about the irresponsibility of other people in terms of their everyday activities.
Some people would simply dump their ways anywhere without thinking that its untoward effects to other people. Being the case, the government has to make sure that public bads are prevented and properly address. They could do so by implementing rules and guidelines in the people’s consumption of public goods.Public goods play an important role in the lives of almost all individuals. Its purpose is to attend to the basic needs of people that are essential in their everyday lives and even in their very survival.
Public goods should be well protected and responsibly use in order to prevent public bads from happening. People must be aware that the goods and services that aid them also has the capability to be harmful when it is not given proper importance.