Forced rider
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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[edit]
Forced riders in taxation[edit]
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[edit]
- 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[edit]
References[edit]
- ^ 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.