ShmoopTube

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finance a la shmoop. what is the free rider problem? free rider not Easy Rider

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but a great film ask your parents about it and go watch it someday.

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alright and if there was any confusion this video is not about ebikes either. [kid holds up VHS in a movie rental store]

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you know those battery-powered bikes? okay so you're a tax derelict. you hate

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paying taxes so much you just don't. but then North Korea sends over a nuke.

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well it's about ten miles off the coast just about to make you glow in the dark

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forever, when one of our homing robot defense missiles shoots out the belly of

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a nuclear sub, and blows that nuke from North Korea all the smithereen. thank you

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very much. so now the country is safe not so much North Korea but that's a

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different story. well you didn't want to pay your taxes. [missile flies through the air]

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you didn't want to fund that sub or the brave sailors in it or the homing drone

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or the myriad other fancy tech things that powered it. you deadbeat tax non

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payer that you are, you wanted a free ride. a free ride on everyone else's hard

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earned money that they paid taxes on. all right so how do we avoid this problem

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like you? well we have the IRS and they have an army of geeks who make sure you

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pay your taxes, so you can't just freeride on the rest of our backs. and if

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you don't pay your taxes you face serious jail time and we'll have to end

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up paying more than if you just fallin in step and pay your taxes on time along [man is thrown in jail.]

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with everyone else. got it all right free-rider problem solved.

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