Why does the government suppor

Ideally, goods and services would be provided in a free marketwithout requiring any government intervention. Market provision isconsidered superior because there is less bureaucracy and moreincentives for firms to be efficient. However, there are some goodsand services which will be under-provided in a free market. Somegoods may not be provided at all. This is considered a type ofmarket failure and therefore for several reasons people argue thegovernment should step in and provide it.

Education is considered a merit good that leads to externalbenefits for others and thus has a positive externalities attachedwith it. The private sector may underprovide such services due toits profit maximisation motice and hence the government needs tointervene. Similarly police protection and national weather serviceis also public good that haave the characteristic of being nonrival and non exclusive. There will be probability of free ridersand thus the private sector will not be able to cover its cost ofprovisions. This will lead to under supply of these essentialservices and hence fhe governmmet needs to provide it.