Wheat from the Chaff Blog

In a 2008 speech for TVO, Naomi Klein discussed the shrinking public sphere in the United States. Already small by Western standards, America’s public sphere appears to be shrinking by the week. One of the few realms of American society that is still considered to be a public good is firefighting and disaster relief. But even that is disappearing. AIG Insurance (as well as Chubb Alarm) have set up their own private fire fighting forces to help insurees protect their homes… assuming your house is important enough to save. (For Chubb, that means a market value of at least one million dollars.)

Two stories that explain the trend can be found here and here. Notice that the business website (link 2) paints a substantially rosier picture in its conclusion compared to the Bloomberg article (link 1).

A “public good” can be defined as any item or service that is publically funded and available to all. Moreover, it’s good for you if other people also have it. For example, public education is a public good because it’s a benefit for you if other people around you are educated. Presumably firefighting is a public good, too, as the protection of all helps protect you as an individual.

The same is not true of a private good. This type of good does not require equal access to a product or service. The fact that others lack what I have (let’s say, a Porsche) is not a hindrance to me if they can still move efficiently with public transit, a bicycle or a Kia. Inequality in this case is a matter of reward and preference, rather than mutual benefit.

Canada’s ratio of public to private goods is slightly higher than the United States (especially with health care), but less than most western European countries. Even within Canada, Quebec sees child care as more of a public good, while most other provinces do not. BC still views basic auto insurance as a public good (“it’s good for me that other people are insured”), while Alberta or Ontario consider it a private good.

What constitutes a public good varies greatly. Each country tends to have a different ratio of public to private goods, but this ratio is a relatively stable predictor of daily politics. In other words, the dominant ideology of any country can be measured by this ratio. It shows how much we (or the political elites, at least) are other-regarding or egoists.

If we are living in an age of increasing political egoism, perhaps those who defend public goods, or seek their expansion, need to emphasize the self-interested nature of public goods (they help you, too). It wouldn’t hurt to also emphasize the efficiency of public enterprises when delivering goods we all need, in the sense that private enterprises replicate bureacracies and lead to higher administrative costs, like in the American medical system.