Question

Donny argues that the provision of a police force by New York City (NYC) is a public good. a. Would you agree that the New York Police Department (NYPD) is a public good given your knowledge of rival and excludable goods? Why or why not? b. If NYC does not tax its citizens, then there is not enough money to fund the NYPD. Donny argues that taxation is not efficient, because it reduces social surplus and creates deadweight loss. He proposes NYC should get rid of taxes and collect voluntary donations from its citizens to fund the NYPD. Do you agree or disagree with Donny on his argument on the efficiency of taxes? Why? What could be a potential obstacle to voluntary donations funding the NYPD?

Answer 1

Answer,

(a). Yes i agree that NYPD is a public good.

Generally public goods are those products that an individual could consume without reducing it's availability to others and of which no one is deprived.

The main examples in excludes law enforcement, national defence, public parks and even the fresh air we braeth!

And those public goods are generally non-rival and non-excludable because.

1. Non-rival means the goods which don't dimish gradually i supply as people consume them.
2. Non-excludable means the goods that should be available to all and cannot be withheld, even from people who donot contribute to it's public funding.

(b). I personally disagrees with Donny's argument.

Simply, Tax is the money that we have to pay the government, and these taxes are used to pay for the people who work for the government, such as military and police forces, education and health and so on.

Taxation may or maynot reduces the social surplus but it helps in structuring an investment or a financial plan so that the least possible taxation occurs.

And also it is said to be tax-effiecient if the tax outcome is lower than an alternative financial structure that achieves the same end.

The potential obstacle to voluntary donation funding are,

• Some issues for which we just can't develop the kind of money measures that need for funding.
• The problems or the money required are massive in scale, and the organizations(voluntary donations) are tiny up against them, and we have a belief system that keeps them tiny.
• And also there are many points such as COMPENSATION in which anyne would make very much money mayout contribute or help other people.
• Because many or some kind of people are there in the society they're not willing to make that kind of lifelong economic sacrifice.
• And so on...!