Forced rider: Difference between revisions

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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.
Childless adults are required to pay for the public education of others' children. Additionally, parents whose children are not using the public school system, such as those enrolled in private or charter schools in the US, are still required to pay for other children's public education, as well.

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.

References

^ ^a ^b "The Myth of Neutral Taxation" (PDF). July 20, 2005. 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. Macmillan. ISBN 9781429202275. Retrieved November 30, 2013.
^ Gary Galles (July 1, 1994). "Union Dues and the "Free Rider" Problem". mises.org. Retrieved August 11, 2019.

[mises-1] "The Myth of Neutral Taxation" (PDF). July 20, 2005. Retrieved November 30, 2013.

[2] Richard Cornes Todd Sandler (July 1, 1994). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved November 30, 2013.

[3] Cowen, Tyler; Tabarrok, Alex (October 9, 2009). Modern Principles of Economics. Macmillan. ISBN 9781429202275. Retrieved November 30, 2013.

[4] Gary Galles (July 1, 1994). "Union Dues and the "Free Rider" Problem". mises.org. Retrieved August 11, 2019.

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+{{Use American English|date = March 2019}}
-A '''forced rider''' in economics is a person who is required, by government or other collective, to share in the costs of goods or services without desiring them. Such goods are typically [[non-excludable]].<ref>{{cite web|last=Cowan|first=Tyler|title=Concise Encyclopedia of Economics |url=http://www.econlib.org/library/Enc/PublicGoods.html |work=Public Goods |publisher=Library of Economics and Liberty |accessdate=27 February 2013}}</ref><ref>{{cite book|url=https://books.google.com/books?id=4neLQXRNntkC&pg=PA111&dq=%22forced+riders%22&hl=en&sa=X&ei=gC0nUarxC9HOigK3oYHQAQ&ved=0CIIBEOgBMA4#v=onepage&q=%22forced%20riders%22&f=true |title=Austrian Methodology: The Preferred Tax Type |publisher=Books.google.com |date= |accessdate=2013-11-30}}</ref>
+{{Short description|Someone required to pay for something they don't want}}
+{{Use mdy dates|date = March 2019}}
+{{notability|date=September 2021}}
+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 ===
-Public goods are non-excludable.  As a result, some people may be required to contribute to the cost of public goods they would prefer not to support.<ref>[https://books.google.com/bookshl=en&lr=&id=4XxbYM8UMtwC&oi=fnd&pg=PA63&dq=samuelson+preference+revelation&ots=6MOaOgtG0F&sig=d_h_e_chvtGOHpEFM51aAVEn7VU#v=onepage&q=samuelson%20preference%20revelation&f=true Providing Global Public Goods]{{dead link|date=March 2013}}</ref><ref>[http://bbs.cenet.org.cn/UploadImages/200642020355785817.pdf Multipart pricing of public goods] {{Webarchive|url=https://web.archive.org/web/20131203060435/http://bbs.cenet.org.cn/UploadImages/200642020355785817.pdf# |date=2013-12-03 }} bbs.cenet.org.cn</ref> An example is compulsory tax payments, where the payees have no control on the usage of the taxes. This is called the "forced rider problem".<ref>{{cite web |url=http://sobek.colorado.edu/~mciverj/Ostrom-PG&PC.PDF |title=Public Goods and Public Choices |format=PDF |date= |accessdate=2013-11-30 |archive-url=https://web.archive.org/web/20050520201711/http://sobek.colorado.edu/~mciverj/Ostrom-PG%26PC.PDF# |archive-date=2005-05-20 |dead-url=yes |df= }}</ref>  Due to the nature of a [[non-excludable]] good, they do still receive the benefits of the good they are forced to pay for via taxation or other compulsory payment.
-===Forced riders in taxation===
 The forced rider has been cited in various authors' views concerning taxation.
-* [[Pacifists]] are required to pay for [[national security|national defense]].<ref name="mises" /><ref>{{cite web|author=Richard Cornes Todd Sandler |url=http://jtp.sagepub.com/content/6/3/369 |title=Are Public Goods Myths? |publisher=Jtp.sagepub.com |date=1994-07-01 |accessdate=2013-11-30}}</ref><ref>{{cite book|url=https://books.google.com/books?id=BdnxxpsF2pMC |title=Modern Principles of Economics |publisher=Books.google.com |date= |accessdate=2013-11-30}}</ref>{{page needed|date=March 2013}}
+* [[Pacifists]] are required to pay for [[national security|national defense]].<ref name="mises" /><ref>{{cite web|author=Richard Cornes Todd Sandler |url=http://jtp.sagepub.com/content/6/3/369 |title=Are Public Goods Myths? |publisher=Jtp.sagepub.com |date=1994-07-01 |accessdate=2013-11-30}}</ref><ref>{{cite book|url=https://books.google.com/books?id=BdnxxpsF2pMC |title=Modern Principles of Economics |date= October 9, 2009|isbn=9781429202275 |accessdate=2013-11-30|last1=Cowen |first1=Tyler |last2=Tabarrok |first2=Alex |publisher=Macmillan }}</ref>{{page needed|date=March 2013}}
-* [[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.<ref name="mises">{{cite web|url=http://mises.org/rothbard/myth.pdf |title=The Myth of Neutral Taxation |format=PDF |date= |accessdate=2013-11-30}}</ref>
+* [[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.<ref name="mises">{{cite web|url=http://mises.org/rothbard/myth.pdf |title=The Myth of Neutral Taxation |date= July 20, 2005|accessdate=2013-11-30}}</ref>
+* 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]].{{cn|date=November 2013}}
+* In many European countries, every household is required to purchase a [[television licence]] whether they watch television or not.
+* Childless adults are required to pay for the public education of others' children. Additionally, parents whose children are not using the public school system, such as those enrolled in private or charter schools in the US, are still required to pay for other children's public education, as well.
+=== 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.<ref>{{cite web|author=Gary Galles |url=https://mises.org/wire/union-dues-and-free-rider-problem |title=Union Dues and the "Free Rider" Problem |publisher=mises.org |date=1994-07-01 |accessdate=2019-08-11}}</ref> This is the case in [[agency shop]] union security agreements.
 ==See also==
+*[[Accessibility (transport)]]
-*[[Free rider problem]], an opposite kind of problem with public goods
+*[[Automotive city]]
+*[[Ghetto tax]]
+*[[Redlining]]
+*[[Transit desert]]
+*[[Transport divide]]
 ==References==