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Question on governments role in market economy?

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In some cities, garbage service is provided through the govt. ( that is you pay for it through your property taxes. In some other cities, garbage service is provided privately (that is, each household hires its own company to provide garbage pickup). Is there justification for government in the provision of garbage removal service? YES or NO? and WHY

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  1. Government make contracts with garbage collectors such as Waste Management and other companies.  One needs to look at social incentives.  If individual people hired a trash collectors. people that didn't hire any trash collector will have an incentive to "free ride".  People that didn't hire a trash collector will dump their trash on people that did hire a trash collector.  The people that did not pay for collection get a free ride.  The government deals with this problem by having a contract with a garbage removal service. It can solve this problem.  

    If you know someone else can cover it, you have little or no incentive to pitch in.  The other person (neighbors) is also thinking the same way your thinking eventually no one pays for it and as a result you have a dirty city.  

    The reason for this provision is to prevent free riding.


  2. states have the right to govern themselves and make their own laws, the government does not control every aspect of the country.

  3. No it is not justified.  The Government is not responsible for hauling trash away.  The Government should be responsible for only three purposes.  1. Military 2. Police 3. Courts.  Protecting and maintaining the rights of it's citizens is its only job.  However, if the state wants to be stupid enough and thinks that taking a private industry and turning it into a government ran monopoly is good, then, whatever...better move out of that city.

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