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But also the states with its heavy taxes and destructive inflation. Otherwise
Speaking, protection guarantees that sowed the field will be allowed for collecting
Crop. The crop as a result appears plentiful.
When the state badly copes with this protective function, arise
Serious problems. If the private property rights are not defined accurately
Or are not observed, people will appropriate another's property, nothing
Paying in its owners. In conditions when one can force to pay for
Itself others, the market cannot normally function, as the mechanism
Definitions of true production costs of the goods on which it is based,
Will not operate.
Besides, resources, the property rights on which are indistinctly defined
Or are protected, exposed to an overexploitation not enough.
Environmental contamination is a classical example such
The second major function of the state - productive - consists in
Maintenance of citizens with the so-called public blessings which have
Two distinctive features:
(1) they cannot be given to someone to one, without having made them at the same time
Accessible to the others, and
(2) it is difficult, and sometimes and it is impossible, to limit a circle consuming these blessings
Only those who pays for them.
National defence, projects on prevention of flooding or on struggle with
Insects - examples of the public blessings.
It is very difficult to private concerns to make and sell the similar blessings. In force
The nature of these blessings to establish a direct connection between a payment for
Them and their granting it is almost impossible, and, hence, at
The consumer there is no stimulus to get them. They will be paid by others, and it
Can consume their gift.
We take as an example the project on prevention of flooding. If certain
The firm builds a dam for drain regulation, difficultly or nearly so it is impossible
To limit its use only brought the mite in building,
Having refused at this all to the rests. Realising it, potential addressees
Benefits usually do not wish to cover costs of such project, giving
This right to "that guy". In this situation even the most effective project
It can appear impracticable.
The society can win, carrying out potentially favourable project of the such
Sorts through the state. In effect, such activity meant
Adam Smith when formulated well-known "three functions of a crown".
The state legitimate right - to do that people alone or cannot
To master in general, or not in a status to make very well.
How to define, whether the governmental project really is
The effective? It is considered that majority support does the political
Action lawful and effective. It can seem surprising, but
If the project is really effective, costs for its realisation always
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