Public good facts for kids

A fireworks show is a public good. It's hard to stop people from seeing it, and one person watching doesn't stop others from enjoying it too.

In Economics, a public good is a special kind of good or service. It has two main features that make it different from other things we buy.

First, it's impossible to stop people from using or enjoying it, even if they don't pay for it. This is called being non-excludable. Second, one person using the good doesn't reduce how much is available for others. This is called being non-rivalrous.

Think about fresh air, knowledge, or streetlights. Everyone can use them, and one person using them doesn't mean less for someone else. A fireworks show is another great example.

What is a Public Good?

A public good is something that everyone can benefit from. You can't easily stop someone from enjoying it. Also, if you use it, it doesn't mean there's less of it for others.

Why are Public Goods Special?

Public goods are interesting because of their two main features:

• Non-excludable: Imagine a lighthouse. Once it's shining, any ship nearby can see its light. You can't really stop a ship from using the light, even if they didn't pay for it.
• Non-rivalrous: If one ship uses the lighthouse light, it doesn't make the light dimmer or less useful for another ship. Many ships can use the same light at the same time.

Because of these features, public goods are often seen as an example of a market failure. This means that if everyone only tries to make money, these goods might not be made or provided efficiently.

Examples of Public Goods

There are many things that act like public goods. Some are "pure" public goods, meaning they fit the definition perfectly. Others are close.

Here are some common examples:

• Flood Control: Systems that protect areas from floods help everyone in that area. It's hard to exclude anyone.
• Public Water Supplies: Clean water systems provide water to many homes.
• Street Lighting: Lights on streets make it safer for everyone walking or driving at night.
• Lighthouse Protection: Lighthouses guide ships safely, and all ships can use their light.
• National Defence Services: A country's military protects all its citizens.
• Parks and Public Recreational Areas: Public parks are open for everyone to enjoy.

Who Provides Public Goods?

Since it's hard to make money from public goods (because you can't easily charge people for them), private companies might not want to provide them. If a company built a streetlight, how would they charge everyone who walks under it?

This is why governments often step in. Governments provide public goods because they benefit everyone in society. For example, a government might build roads, provide national defense, or fund public parks. They do this because the benefit to society as a whole is very large.