Externalities of a Roommate

Andy goes to the hospital for a broken nose, but it turns into a rant session for Ben. It turns out the roommate situation between Ben, April, and Andy hasn’t been ideal because Andy and April continue to use his things without his permission. Andy and Ben negotiate for ways to remedy the externality on their own. If property rights are well established (Ben does own his stuff!) then two parties can work out externalities without government intervention.

Effects of a Government Shutdown

Pawnee is going through a bit of a budget crises and they have decided to cut the Parks Department budget so that no parks will be open over the summer break. This also means that a previously-planned concert needed to be canceled as well. The citizens of Pawnee want to know what services the government will provide if they are shut down. Ron relishes in the fact that the services aren’t provided.

A Token Park

Ron believes that the government should be operated by private enterprise (like Chuck E. Cheese) that uses a token system to participate, like taking a walk, going down a slide, or seeing a duck. This would take a previously nonexclusive good and turn it into one that must be purchased to be consumed.

Spending Federal Funds on Parks

The government often provides services for public goods and common goods when the private market isn’t ready to accept that responsibility. Because Ron is a big believe in free markets, he isn’t happy that federal money is being spent on providing common resources for the community.  He believes that the best kind of park would be one ran by Chuck E. Cheese.