Big Mac, National Defense, And The Case For Public Education

Market failure such as environmental destruction provides a clear-cut rationale for government intervention in a market economy. The market generally works, but not always, and in those cases government intervention can produce a better outcome. One shudders to think of what a satellite photo of the Amazon rainforest would look like today in the absence of the Brazilian government’s forceful and effective measures to slow down deforestation. One particular form of market failure is that the market fails to produce or produce too little of certain goods that improve society’s well-being. Such goods are called public goods, which refer to goods consumed by all members of the general public, as opposed to private goods which are consumed by individuals for their own private enjoyment. My consumption of a private good — e.g. a Big Mac [although the health conscious might view the iconic burger as a bad rather than a good] — directly reduces your consumption. On the other hand, my consumption of a public good does not reduce your consumption…