What Is Welfare Recreation? How Does It Cause Harm?
In a competitive market free of government interference, the amount of recreation provided is determined by the interaction of buyers and sellers freely determining how much they will consume and produce. In the long run, there is neither a shortage nor an oversupply of recreation. If there is a shortage, the price will rise, encouraging a greater supply of recreational services. If too many recreational services are provided, the price will fall, encouraging a smaller supply. When the federal government enters the game, however, the corrective forces of the market are impeded. Price signals no longer convey the amount of recreation that consumers are willing to pay producers. This situation is possible because the federal government does not need to consider the full costs of providing too much or too little of a good or service. Because activities are largely financed out of taxes, it can charge less than the cost of providing a service, and keep operating. In the case of recreation
