Essay Sample on Rationing of Public Goods

Published: 2023-01-16
Essay Sample on Rationing of Public Goods
Type of paper:  Essay
Categories:  Government Public policy
Pages: 2
Wordcount: 549 words
5 min read

The governmental regulation of the National Health Service of The United Kingdom is well structured and has many bodies rationed by the government. The regulation in the British national health service (NHS) entered a similar currency in 1990, This was after the introduction of the internal market changes by the conservative government (Buchan,2013). It has a limited budget given to the health care sector. This has made the citizens utilize the little available resources provided by the government to fund their health. It has a body called the National Institute for Health and Clinical Excellence (NICE). The body decides the drugs to be used in hospitals. The rationing by this body faces a lot of challenges and dilemmas. It is an independent body but still viewed by citizens and health providers as influenced and not independent. It involves making hard decisions, especially when dealing with the allocation of funds. An alternative option can be provided where a public office with members of the public can give opinions on how the programs can be rationed. The health providers can chair the decision-making meetings and be part of the decision makers.

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A very clear example of governmental rationing is the 1973 gasoline rationing during the energy crisis in the United Kingdom. There was an attempt by the government to stop officials at the stations from increasing the prices of the available gasoline. The little resource was evenly distributed.

The advocates for more spending on goods have views that contradict with the people advocating for less expenditure on goods. This is likely to affect the marginal cost of public goods. The marginal cost of goods refers to the total cost of production(Eugene &Skinner, 2017). This price always changes even when one-unit increases. It is affected by changing prices and variable costs. The views on spending more on goods can lead to an increased cost of living. The distortions caused by increasing taxes to fund public goods is another reason why there are divided opinions(Mechanic,2015). Any increased taxation has disadvantages which include the risk of the economy falling into recession, the reduction of expenditure can affect the recovery. Raised taxation for the wealthy will not affect the reduced and the general need for employment. Other factors that affect the decisions on spending

In conclusion, economic activities show how people are balanced in a nation. The businesspersons and governments balance the economy when it buys and sells. When there is a shortage in demand for the government while offering its services has to ration some of its public assets to stop cartels from taking advantage of the citizens. The government always ration public programs so that any scare resource is equally shared among the public which is the beneficiary. The views on the need to spend more on government goods can result in a damaged economy. Increased taxation debates affect the public which has both the wealthy and the majority poor. The control measure cannot work as it may result in a recession


Engen, E. M., & Skinner, J. (2017). Taxation and economic growth (No. w5826). National Bureau of Economic Research.

Mechanic, D. (2015). Rationing health care: public policy and the medical marketplace. Hastings Center Report, 34-37.

Buchan, J. (2013). Health sector reform and human resources: lessons from the United Kingdom. Health Policy and Planning, 15(3), 319-325.

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