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A forced rider in economics is a person who is required, by public or private entities, to share in the costs of goods or services without desiring them or valuing them at their price.
Theory
Forced riders in taxation
The forced rider has been cited in various authors' views concerning taxation.
- Pacifists are required to pay for national defense. [1] [2] [3][ page needed]
- Environmentalists may be required to pay for public works projects, such as dams, which they feel destroy natural habitats in ways they do not condone. [1]
- Healthy and insured individuals being forced via an individual mandate to subsidize insurance for unhealthy and previously uninsured individuals. Previously uninsured individuals are now free riders.[ citation needed]
- In many European countries, every household is required to purchase a television licence whether they watch television or not.
Forced riders in private property
- In a unionized workplace, non-union as well as union members are required to pay dues to the union representing the workplace as a condition of employment. [4] This is the case in agency shop union security agreements.
See also
References
- ^ a b "The Myth of Neutral Taxation" (PDF). Retrieved November 30, 2013.
- ^ Richard Cornes Todd Sandler (July 1, 1994). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved November 30, 2013.
- ^ Cowen, Tyler; Tabarrok, Alex (October 9, 2009). Modern Principles of Economics. ISBN 9781429202275. Retrieved November 30, 2013.
- ^ Gary Galles (July 1, 1994). "Union Dues and the "Free Rider" Problem". mises.org. Retrieved August 11, 2019.