What Are Public Goods and Why Do We Need Them?

Miacademy & MiaPrep Learning Channel

This video provides a clear and engaging introduction to the economic concept of public goods, using the fictional town of Marketville to illustrate the challenges of market failures. Through the example of missing streetlights, the narrator explains the two defining characteristics of public goods: non-excludability and non-rivalry. The video breaks down these complex terms with relatable examples, demonstrating why private markets often fail to provide these essential services and why governments typically step in to fill the gap. The content explores both the benefits and drawbacks of public goods. It highlights positive externalities like public health, environmental protection, and community building, while also addressing challenges such as funding through unpopular taxes, the potential for overuse (Tragedy of the Commons), and maintenance issues. The narrator encourages viewers to think critically about how political decisions and budget cuts affect the availability of these resources in their own communities. Ideal for high school economics and civics classrooms, this video addresses the "Free Rider Problem" and the concept of underprovision. It serves as an excellent foundation for lessons on government spending, tax policy, and civic responsibility, helping students understand the balance between individual costs and collective benefits in a society.