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)

Why do people accept limited freedom and the obligation to pay taxes?

Because the state will maintain peace by settling conflicts and punishment

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

What is a regulation state?

A state wherein regulations and corresponding institutions directed at preserving and fair sharing of resources

What are examples of collective (public) goods?

  • Infrastructure for the economy
  • Security
  • Defence

What is the function of a facilitating state?

Investing in collective goods (are free so no other producers) which stimulates wealth

What are the results of not equally divided wealth?

  • Inequality in income
  • Threatens health
  • Social instability

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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