26 Freeriding is easier with Anonymity : If everyone knows who contributes, there can be powerful social stigmas applied to shirkers. Large numbers of people : It’s easier to determine the shirkers in a small group and the punishment is more profound when people close to you shun you for not paying your share.
27 Illustrating Voluntary Contributions to a Public Good: The Gulf War Under the premise that defeating Iraq in the Gulf War in 1990 was a public good to be consumed by the industrialized economies and Arab nations, each nation was expected to contribute. The U.S. and UK contributed the bulk of the fighting forces. Saudi Arabia, Kuwait, the UAE, Japan, and Germany voluntarily paid $54 billion of the estimated $61 billion cost.
28 National Defense and Homeland Security National defense is a classic example of a public good. Defense From 1968 to 1978, defense spending fell from 9% of GDP to 5%. Between 1978 and 1986, it increased to 6.3%. By 1999, it had fallen to less than 4%. In 2002, it was 4.5%. Homeland Security The new department merged several agencies from the departments of Justice, Transportation, Treasury, Agriculture, Energy, Health and Human Services, and Commerce. The Homeland Security Department could ultimately have 170,000 employees working in border and transportation security, emergency preparedness and response, biological warfare defense, and computer security. It will also house the Secret Service and Coast Guard.
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