Public Good
Candlefocus EditorIn comparison, private goods are inherently scarce and have to be purchased individually, with the price and quantity determined by the market forces of supply and demand. Many goods that are provided and consumed in society could be considered both private goods as well as public goods. For example, goods that are provided only if enough people buy them, such as a car or a home, are private goods because they are accessible to only those who can afford them, while goods that are publicly funded, such as libraries or public parks, are public goods because they are available to everyone.
The decision on what goods should be considered public goods is contentious since individuals and countries will have different opinions on the role of government spending. In order to identify public goods, governments will usually consider what goods will benefit all segments of society, such as education or access to clean water, and look at what goods are not adequately produced on the private sector market. The provision of these goods can often be costly, and the costs need to be weighed up against the benefits of providing them.
Overall, public goods are goods and services that are beneficial to all members of society, regardless of individual ability to pay for them. They are typically provided for free by governments and are often a source of contention when it comes to deciding which goods should be provided and how much money should be allocated for them. Understanding the differences between public goods and private goods is important as it can help us to make better judgments about the kind of society we want to live in.