Private Provision of Public Goods
By Arnold Kling
I’ve often been asked for my opinion on what the country’s sunrise sectors are. My response, at first tongue-in-cheek, but becoming more and more serious over the years, is that anybody who decides to compete against the government has a great chance of succeeding. Four activities come easily to mind.
Equipment for private supply of electricity–generators, inverters, and so on–are needed to compensate for the inadequacies of the larger system. Private security makes up for the perceived failure of the state security apparatus.
Private education at every level continues to surge, while public institutions sink. And, while access to publicly-provided drinking water eludes an increasingly large proportion of the population, the number of brands and the sales volumes of bottled water continue to climb.
He’s talking about India, but I think it’s a trend to watch in the U.S., as well.
Thanks to Amit Varma for the pointer.