Affiliation:
1. Hochschule Hamm-Lippstadt Marker Allee 76–78 Hamm Germany
Abstract
Abstract
The German national deficit reached an unprecedented magnitude following the COVID-19 pandemic. Consequently, determining an appropriate or correct public sector share has become the subject of extensive discourse. A crucial theoretical explanatory approach for the increasing intervention of the state is the theory of public goods. This article elucidates why markets are unsuitable for the production of certain goods, commonly referred to as public goods. Furthermore, the article demonstrates, through the elucidation of impure public goods, that the state undertakes tasks that could be handled by the market itself. Therefore, it is essential to question why the state produces specific goods, particularly in light of Germany’s saving goals.