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Justification for the state
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==Public goods== While a market system may allow self-interested firms to create and allocate many goods optimally, there exists a class of "collective" β or "public goods" that are not produced adequately in a market system, such as infrastructure or social services. Market forces may not be sufficient to incentivize rational individuals to adequately produce these public goods; therefore, coercive institutions must intervene and guarantee the production of such public goods, whether by assuming their production under the state (e.g., the building of public roads) or by introducing market forces to incentivize their production in the private sector (e.g., providing subsidies for electric vehicles).
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