The Freerider Problem

A dozen Iraqi teens dragged the soldiers' bodies out of the wreckage and beat them with concrete blocks. Germany's Schroeder wants to forgive Iraqi debt rather than pay for it. France declined to give any new money to the U.S.-led effort in Iraq.

It seems America is paying the price--in blood and cash--while the rest of the world reaps the benefits, a world free of Saddam, Osama and terrorism. That's right, the rest of the world is basking in the "spill-over" effects of America's efforts to maintain security and end terrorist threats.

This problem is not merely an international one. Each nation-state must protects its citizens from events like 9-11 through "national defense." Because Joe may contribute to the "national defense fund" while his lovely neighbor Jill freerides off the services, taxation must be levied by the central government on all citizens. Yet, the Bush Administration is not addressing the exact same problem within the international community. The U.S. fronts the cash and cannon fodder and the rest of the world benefits from the positive externality of terrorism reduction. The solution? The U.S. government must demand the rest of the countries in the world pay a terrorism tax--a tax to fund the War on Terrorism! This fundamental excuse for the nation-state as monopoly provider of security must be generalized to the entire world. And if these derelict nations refuse, force must be used to collect this tax. Ladies and gentlemen, this is the only way to produce security in this modern, post-911 world.