ABSTRACT
Government services are rendered to maintain the identity of the nation-state against the threat of aggression from abroad or of secession or insurrection at home. Certain types of service are commonly distributed by the government free of charge. These include some services that could instead be sold on the market. Tangible goods, on the other hand, are rarely distributed free of charge. They are sold for a price by either government or private firms, partly because the recipient of free tangible goods can often resell them instead of consuming them. Few if any services can be resold. This service of maintaining the political status quo is supplied by the military forces and by internal security forces. It is to be distinguished from the police service, which affords protection against lawbreakers operating singly or in small groups. But the two services are complementary in production. Government services that are supplied free of charge to business firms are termed producer services.
