Public versus Private Goods

Changes in technology and advancement in social services have tremendously impacted the delivery of public and private goods, negatively or positively, depending on geographic location. Some part of society may be attracted to technological innovation more than others. Technology has been friendlier to the youth and to the educated elite because of their lifestyles and love of modern tools and technology. Advances in technology have allowed humanity to enjoy the luxuries that come with public and private goods.

Technology is better placed in advanced democracies than in sluggish autocratic or authoritarian regimes where economic strangulation, economic retardation, political obscurantism, underdevelopment, human rights violations, and control of general societal development prevail. Nations that have advanced in the use of technological tools include those in North America, Western Europe, and in Australasia. Economic factors and freedom contribute to technological distribution and use.

Benefits from public goods can be shared unlike private goods that are consumed by individuals who purchase the private good based on their ability to purchase. A public good is like the national defense where its consumption is shared by all as every citizen has to be defended by the arsenals of weapons in use in case of aggression. Streetlights are another example of public goods. Others include clean air and light houses that equally benefit the general public without one person enjoying the significance of that public good more than the other person.

To avoid working in hazardous conditions and overcome the risk of purchasing products of concern, citizens look to their governments for information. It is a government prerogative to oversee economic stabilization and engage in monetary and fiscal policy implementations to deter unemployment and economic downfall.

Efficiency leads to confidence and an increase in purchasing power. Efficient distribution of products and resources elevates consumer confidence. A change in welfare distribution is trade-off that leads to improvement in efficiency. Efficiency is best attained in a perfectly competitive market system as everyone’s monetary income depends on the amount of production in resources owned and returns obtained. However, income distribution is dependent on individual willingness and ability to pay (Hyman, 2011).

Public goods may be categorized as non-rival or rival. Public goods are non-rival in consumption because they can be consumed by many in a given locality. An example of non-rival good is television and radio transmissions. Because of the non-exclusion characteristic, pure public goods are non-rival. Private goods are considered rival in consumption because of the competition among consumers.

The value and worth of public and private goods delivery and transfer of business transactions is best determined when there is efficiency and social equity. Life becomes up to standard and comfortable in nature when there is a streamlined delivery of public and private goods and equitable distribution of social services. Humans tend to decline services that are not worth and out-of-date. Citizens prefer to pay for public goods in accordance with the benefits they get from that public service (Mikesell, 2011). The same applies to private services or public goods.

Changes in income alter human consumption of goods. The introduction of the welfare system such as the food stamps program allows many to become free riders. Free rider is at times seen as having the same characteristics as the Tragedy of Commons. The fact that free riders do not contribute to the food stamps and other supplemental nutrition programs, advocates opposed to spending feel it causes financial strain on the laboring, tax paying citizen. 

According to Hyman (2011), there is no unanimously agreed upon and appropriate manner when it comes to distributing goods and services to consumers. Pure private goods cannot be supplied by the government and financing cannot be made through taxation.

Technology has tremendously altered the way humans consume goods and services. In recent times, technology has played a vital role in the delivery of healthcare and healthcare services. People are getting advanced medical attention and better treatment options. States, counties, and smaller jurisdictions have seen the proliferation of hospitals regardless of whether they are public or private. Technology has simplified how hospitals operate and patients’ waiting periods have been slashed to almost a half. Nowadays, patients can be operated on by specially trained doctors and nurses using advanced equipments and modern tools.

Many from the outside world, including Kings, queens, presidents and prime ministers, CEOs, and ordinary wealthy individuals come to the US to seek medical attention in hospitals such as John Hopkins Hospital, Mayo Clinic, and other reputedly advanced medical institutions treating such diseases as cancer and brain injuries and other serious diseases that cannot be treated anywhere else except the US. Majority of these hospitals, because of advancement in technology and resource distribution, are either publicly or privately owned.

In modern times, businesses have prospered significantly as a result of internet communication. Business transactions have become more widespread with the proliferation of internet technology. The United States leads the world when it comes to conducting business on the internet. Business is more robust and diversified especially during the holidays. Millions of Americans buy gifts over the internet and then send to friends and relatives without even seeing the product being shipped. Shipping companies and the post office have been experiencing increased traffic due to demand and supply.

Thus, this novel business transaction has emerged the most valuable tool in the dissemination of products and information. Business over the internet is being conducted efficiently and equitably. Transfer of products and services has been increasing over time. Big ground transportation companies have taken the lead transferring tons of materials, gadgets, and other equipments ordered over the internet. The airline industry also plays a major role shipping public and private goods far and wide. The marine industry, though slower than road transportation and air travel, has also increased its business acumen. The tonnage of materials being shipped overseas has been increasing yearly as result of the production of advanced freighters that travel great distances.

Big corporations have transformed the way they do business. At times, it is not necessary to ship heavy or light equipments, books, toys, or other necessities abroad. Since many corporations have now branches in many parts of the world, delivery can be done by an overseas company that has the ordered product in its stores. Someone living in New York can order a laptop for a friend or a relative living in a slum in a developing country. Delivery of the item will be performed by a branch store located in the country of destination.

Income plays a great role in modern economics. Many destitute people get public goods provided by their governments while the affluent and wealthy rely heavily on private goods according to their financial capabilities. Welfare economics has undergone tremendous changes and these changes have been made possible by human advancement in the science of economics. The world has become a global village and no wonder the consumption or production of goods has been advancing with each passing day. As the world continues to change and goods and service increase, the manner of conducting transactions will also change for the better unless otherwise unnecessary restrictions emerge.

References

Hyman, D.N. (2011). Public finance: A contemporary application of theory to policy (10^th ed.). Mason, OH: South-Western, Cengage Learning.

Mikesell, J.L. (2011). Fiscal administration: Analysis and applications for the public sector (8^th ed.). Boston, MA: Wadswoth, Cengage Learning.