Tragedy of the commons

The tragedy of the commons, when applied to centrally planned public goods, reveals a paradoxical outcome: systems designed to overcome resource allocation problems often create new versions of the same problem.

When public goods are centrally planned and universally accessible, they frequently suffer from:

1. Diffused responsibility - When everyone collectively owns a resource but no individual bears direct responsibility, maintenance and care decline
2. Moral hazard - Users have little incentive to moderate consumption when costs are socialized but benefits are personal
3. Preference disconnection - Without price signals or ownership stakes, users treat resources as "free" rather than precious and limited

This creates a vicious cycle where central planning attempts to solve one commons problem but inadvertently creates another: public housing deteriorates, state infrastructure crumbles, and shared spaces become neglected.

The deeper insight is that effective stewardship requires alignment between costs, benefits, and decision rights. When central planners separate these elements, they remove the natural feedback loops that encourage responsible use and maintenance of shared resources.