Public goods and services are commodities provided by the government to benefit all members of society. Examples include infrastructure, education, and healthcare. They are typically funded through taxation and are available to everyone regardless of personal contribution.
Without government involvement, the provision of these goods might be inefficient or absent, as private markets often will not supply them due to a lack of profit incentives.
Public goods have unique characteristics:
- Non-excludability: No one can be excluded from accessing these goods once they are provided.
- Non-rivalry: One person's consumption of a good does not reduce the ability for others to consume it.
By providing public goods and services, the government enhances societal welfare, which is something that minimal intervention may not adequately address.