Government can reallocate resources away from private goods toward public goods, usually through

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The government can reallocate resources away from private goods towards public goods through taxes (e.g. higher taxes on luxury goods) and government spending (e.g. investment in infrastructure and public services). This is a key role of government in ensuring the provision of important public goods and services that the private sector is unable or unwilling to provide. Import tariffs and quotas, the laws of supply and demand, and positive and negative externalities may have some impact on resource allocation, but are not direct mechanisms for reallocating resources towards public goods.

Government Can Reallocate Resources Away from Private Goods Toward Public