Answered

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Why do governments use tax money to supply public goods and services, instead of selling them to those people who use them?

Sagot :

Public goods and services are just that: public--meaning they belong to all citizens. If the government were to sell these services only to those who needed them, only the relatively rich would benefit.
jepessoa

Answer:

There are two main reasons why governments use tax money to supply public goods and services:

  1. They benefit large numbers of people.
  2. If the government didn't intervene, maybe no private company would be able to provide them.

Imagine national infrastructure on private hands. Who has enough money to build all the highways, roads, bridges, etc., that millions of people use everyday around the whole country? Infrastructure projects cost trillions of tax dollars every year, and only the government entities (local, state and federal) can afford them.

The same applies for public schools, parks, the police, the army, etc.

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