Farmers markets have caught on in big cities since the 1970s, and a major reason is that governments have subsidized and facilitated their growth. Why? Because farmers markets create “positive externalities,” benefits that are much greater than their costs. They bring neighborhoods together, improve health, and make city life more affordable and enjoyable. And they’re another way government improves our lives.
Every state has some form of vocational education, which is often called career and technical education. But this vital public service suffers from too many providers and not enough supply. This is a casebook example of how government could do a better job, if a leader would step forward. And it may be that only the federal government could play that leading role, as it did in the late 1800s in shaping American colleges and universities.
Public transit didn’t start out as a government service. For more than a century, it was a for-profit industry that government assisted and regulated. When ridership declined and corporations abandoned the business, governments stepped in to keep transit alive. Why? Because buses and trains help cities work better. They also make urban life more affordable and appealing.
With few exceptions, every time you travel on a street, road, or highway, you are on something built and maintained by a government. These are enormously expensive and land-hungry investments, but without them, modern life and a modern economy would be impossible. So, next time you walk, bike, or drive on a city street—or catch a bus to work—give some credit to government for making your journey possible.
If you’ve ever opened a bank account or invested in the stock market, you can thank government for making these everyday investments secure. When did the government get into the business of keeping Wall Street honest and banks sound? During the greatest economic calamity of the past century, the Great Depression of the 1930s. Here’s how the federal government created its regulatory structure, public corporations and banks accepted it, and we have all benefited as a result.