Macroeconomics ECO-2013-Section-77 Kurt Doherty July 29,1999 Assignment #4 To Each His Due All those who live in the United States are accustomed to private property. Everyday situation sometimes lead to what life would be like without it. One can see what the effects are to living in a private society and realize how efficiency and justice are raised to an overall level. This takes place within an apartment building in Washington DC, however many apartments throughout the United States would off the same aspects. Upon living in the apartments, tenants are charged a monthly rent as well as an additional bill for utilities, which includes gas, water, fuel, oil, and electricity. The apartments are considered master metered, which means those living in the apartments are allowed to use as much electricity, water and gas as they want.

At the end of the month the utilities are added up and divided amongst the number of tenants and then billed appropriately. However, the idea of master metered brings up the problem of some getting a free ride off those who conserve. For example, take two people who live in the same apartment complex. One of the tenants is very aware of conserving energy. She always turns off the lights when she’s out of the room, turns the air up a little in the summer and the heat down in the winter. She basically lives her life being a little uncomfortable for the sake of saving everyone in her building a little money.

On the other hand, her neighbor does just the opposite. He never turns out the lights, keeps his apartment ice cold in the summer and nice and toasty in the winter. He even decides against turning his air off when leaves for the weekend, figuring he’ll come home to a hot apartment. He feels he is just paying an average of everyone’s consumption so why should he not be comfortable? So between the neighbors, the bill at the end of the month remains the same because one gives a little while the other takes. Unfortunately those living in an apartment will never compromise on the use of utilities.

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However, if the tenants don’t abuse their use of the utilities and use only what they need to stay comfortable, the monthly bill will average out to be an acceptable amount. It is un-excusable for someone to leave their lights on all day while they are away at work. At the same time it is just as bad for someone to be cold in their apartment in the wintertime because they are trying to keep the bill down for everyone. Federal spending is managed in the same master meter manner. This occurs because the taxpayers are charged the same rate for projects weather they are financed in their area or not.

This allows legislature to act just like greedy tenants in an apartment. They take and take from the money source as fast as possible without recognition of the taxpayers money. Just as stated before, it is important to maintain a balance to keep everyone happy. It is necessary for everyone living in a private society to not only think of themselves but also be aware of how their actions affect others. If everyone keeps taking while others continue to give, sooner or later the givers will give up and the free riders will be stuck without any help from anyone.