Thursday, July 14, 2016

Why We Get More Policing Than We Need: It's 'Free'

Why We Get More Policing Than We Need: It's 'Free': In a press conference Monday, Dallas Police Chief David Brown admitted that the American propensity for sending the police to deal with every minor social problem has failed:“We’re asking cops to do too much in this country” said Brown.

Permit me to provide an additional commentary, as it will simply provide some additional analysis upon this subject. Please note this is not a moral analysis of Government services, or Public Goods, but merely a cursory economic analysis of it. That sort of analysis can be covered by a meta-physician.

1. Moral Hazard-Law enforcement services is a public good. As is the case with most public goods, the price system structure is removed. To wit: The customer does not know the exact "price" for that service. The service is subsidized by the tax payers of the local municipality, but it is not paid each time the cops come out, for example. Hence, the tax payer has the proclivity to "over utilize" the service. The article points this out clearly.

2. Tragedy of the Commons-Due to the fact that the Public Good has no true "ownership", the ownership is the "collective" or the state, over-utilization, as seen in the first example of moral hazard ensues. Scarce resources are mis-allocated, and lost, as this an economic cost to the operation.

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