Can we rely on free exchange between individuals to generate the common good
The free market economy is an example of an economic system whereby natural resources are allocated to satisfy human wants, by the operation of supply with no restrictions of barriers to trade. ... The “common good” is that which satisfies all individuals and can also be that that achieves economic efficiency. Various goods are traded within the free market, the majority tending to be private goods, which are provided by the free market system. They show features of rivalry and excludability, if one person was to consume the good another cannot, as people who do not pay for the good can be excluded from consuming it. Public goods tend not be produced in a free market and are therefore produced as a result of government expenditure. ... That is, the quality of the service or good is not reduced in anyway by the number of people consuming it, an example of this being street lighting. Furthermore, those who do not pay for the good cannot be prevented from consuming it, this is known as the “free rider problem”. Therefore the government must intervene in order to finance and provide these goods by means of general taxation, this cannot be left to individuals. Some economists believe the government need to intervene, as individuals may not be able to generate the “common good”.