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[]

Forced riders in taxation[]

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[]

  • 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[]

References[]

  1. ^ Jump up to: a b "The Myth of Neutral Taxation" (PDF). Retrieved November 30, 2013.
  2. ^ Richard Cornes Todd Sandler (July 1, 1994). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved November 30, 2013.
  3. ^ Cowen, Tyler; Tabarrok, Alex (October 9, 2009). Modern Principles of Economics. ISBN 9781429202275. Retrieved November 30, 2013.
  4. ^ Gary Galles (July 1, 1994). "Union Dues and the "Free Rider" Problem". mises.org. Retrieved August 11, 2019.
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