THE BLOG

Mothers As Benign Dictators: 3 Economic Problems Solved By Motherhood

05/09/2015 06:10 pm ET | Updated May 09, 2016

In this season, we have heard a lot about things mothers worry about, problems they see and experience more than others. I would therefore like to dedicate this one minute read to three problems that true motherhood effectively solves.

1. Communal goods. Goods with more than one proprietor rarely work, see communism. A pasture that belongs to all shepherds of a town usually gets overused (economists call this the Tragedy of the Commons), and a kitchen in a student flatshare accumulates dirt or more. This is because one person can load the costs of his or her actions onto others without paying for them. Well, we only have interest in loading costs onto others if we don't care for them too much. Mothers Care. Big time. Altruism undoes the Tragedy of the Commons because then we care about others' woes as much as our own.

2. Externalities. The cost unloaded unto another is called externality. It does not only happen with common goods, it also happens in pollution, excessively loud music etc. Externalities have been known to happen even between people who like each other. Like siblings, say. So called omniscient planners can detect and prevent externalities. Like, hm, mothers. They know. They see. They act. Turn down that blaster.

3. Natural Monopolies. A natural monopoly arises when it does not pay to have more than one provider of a good or service. There is a risk that this sole provider charges too high a price or excludes people. I would reckon that in many families the car is such a natural monopoly, or the TV...or any asset that is too expensive to buy twice and sometimes hard to use by more than one person at once. In these cases too, mum can take a stand and manage access with fairness and altruism. Bloccupying the TV or car is not a sustainable strategy with most mums....

In short, mothers can undo those problems that economic theory has found a so called 'well meaning dictator' can solve. The issue is that in the great wide world, well meaning dictators are a rare species. In our families however, we may know one or two.