Issues and Problems Choices about these issues are not made by some optimal calculation of costs and benefits, but by distribution of political power. Publicly provided goods may suffer from the absence of market discipline. If they are monopolies, they may have problems of waste and mismanagement, lack of innovation, etc. Again, this suggests focus on the institutions making and implementing the choices. C. Modern Governments also have active Roles in the Production and Distribution of Private Goods 1.
Governments Regulate Natural monopolies- telephone, cable TV, power, water, sewers, airports, etc.
Concentration of power is much the same whether it comes from government or from private sources. Governments are often asked to regulate rates, monitor quality of service, safety, etc. Mopping Up Private Spillovers Pollution. OSHA and other industrial regulation. Enforcement of private contracts.