The Lessons of the Lighthouse: “Government” or “Private” Provision of Goods

OVER the last few decades, the debate over whether goods and services should be provided by the government or by private enterprise has been altered by a series of historical studies. ¹ These studies suggest that many goods and services that we think are the special province of the government can be and have been provided by private enterprise in the past. These results challenge the theoretical assertions of a number of earlier economists and policymakers that some goods are “public goods” or at least goods that must be provided by the government if they are to be provided at all.