Free Rider Problem - Politics

Politics

A common example of a free rider problem is defense spending: No one person can be excluded from being defended by a state's military forces, and thus free riders may refuse or avoid paying for being defended, even though they are still as well guarded as those who contribute to the state's efforts. Therefore, it is usual for governments to avoid relying on volunteer donations, using taxes and, in some countries, conscription instead.

Government is indeed the primary mechanism by which societies address free rider problems. In addition to fiscal measures noted above, regulation is another form of collective action taken by governments to resolve free riders problems such as environmental degradation or excessive resource use.

The free rider problem is also one justification for the existence of governments which provide public goods. Some ideologies, such as libertarian capitalism, are often rebuked, because in such a system all property in a society would be privately owned, away from any state involvement or regulation. Libertarians counter that potential free riders within their system could face social ostracism, which may deter those who accept services without donating any payment for them. Libertarians stress that the need to healthily co-operate and interact with others in society would lessen the risk and likelihood of free riders.