Solving the “Tragedy of the Commons”
A government and its financial resources are commonly owned or shared by all citizens. The local government budget must find a way to sustain the resource over time and use it to make a positive difference in the community in the short and long term. The challenge is that each stakeholder of the government has an incentive to use resources from the public budget for their own self-interests. The impact of many budget participants following this course of action could lead to overuse of public resources and long-term financial stress and/or failure of government to produce the best value for taxpayer money. This kind of collective action problem is known as “the tragedy of the commons.”
Publication Date: December 2025
