The Privatization of Roads and Highways - Ludwig von Mises Institute

142 The Privatization of Roads and Highways
utility. Now we must consider Olson’s assertion that economic
rationality and market action are incompatible. We must ask
whether market action in the case of collective goods can function
only if the economic actors are altruistic or irrational. We
must ask if a large group of individuals can collaborate in the
provision of a good whose benefits, once created, cannot feasibly
be limited to cooperating members.
In fact, there are literally hundreds of groups now in existence
which meet Olson’s definition. Labor unions, charities,
businessmen’s associations, and civic organizations are numerous.
Contributions to artistic and musical societies are in abundance.
As I write this, a local nonprofit radio station is featuring
“160 uninterrupted hours of J.S. Bach” and asking for funds. If
contributors respond generously, such programming can continue
to exist. But each potential contributor may reason that, if
many others give, he himself will not be excluded from the benefits.
And the same applies for the Society for the Prevention of
Cruelty to Animals, the N.A.A.C.P., disease research foundations,
etc.
In a recent year, the United Way charity alone raised
$1,039,000,000 for such purposes as individual and family services,
hospitals and health, social adjustment, and community
organization. The American National Red Cross reported donations
received totaling $248,700,000, as well as the involvement of
4,262,000 participants in its blood donor programs. And, in this
era of government assumption of increasing numbers of functions
previously in the private domain, private philanthropy
funds were in a recent year as follows: individuals, $21.4 billion;
foundations, $2.0 billion; business corporations, $1.2 billion; and
charitable bequests, $2.2 billion. 60 One might want to discount
some of the corporate giving as motivated by tax incentives, which
no doubt did play a role. But the generous financial outpourings
60 U.S. Bureau of the Census, Statistical Abstract of the United States, 1976.
(Washington, D.C.: U.S. Government Printing Office, 1976).