In order to effectively reconstruct New Jersey, there is need for establishment of a self interest group as opposed to allowing those in power to foresee the reconstruction. A self interest group will have people with common interests and policies. Through the group, they will try to influence the government to achieve such policies. Self interest groups might have potential members and actual members. Actual members are always invaluable in helping a group achieve its goals. The actual members are moved by the intensity of the goal. In this case, it appears to be very intense and I expect to have actual members that will facilitate the achievement of the group’s goal. Also in this case, the size of the group is relatively small. This will hasten decision making and reduced conflicts among members. In addition, there is financial support from the government. As a result, I expect the proposal to be effective. However, there are also some disadvantages associated with self interest groups regardless of whether is a small or large group. The problems mainly include coordination problems and free rider problems.
Coordination problems are those encountered when attempting to structure individuals of a given interest group to have a common objective. The actions of each individual are interdependent. What one person in a group does will depend on and affect the action of other individual. But considering the case in New Jersey, almost all basic needs are destroyed. This may act as key point to influencing people in prioritizing the goals of the entry group. People will have a common goal for not only the benefit of the society as a whole but also for individual gains. Also considering that the movement is a small one, there will be reduced coordination problems. As a result, it is expected that the proposal of reconstruction will be successful.
Free rider problems are those that arise when potential members of an interest group opt not to join the group but instead sit back letting other people to do the work. The same people who did not participate in the work will however benefit from it. Basing on Olson’s laws of large groups, a group that is big will have a higher tendency of facing free rider problems as compared to a small group. Basing on Olson’s law, then it can be said that the plan of rebuilding New Jersey is most likely to experience free rider problems. If individuals are given the cash, there will be that temptation by some to opt to stay out. This will mean only a few people will be willing to spend the money for rebuilding. As a result, some people may decide not to take part in rebuilding. Though one may argue that selective benefits can be provided to those who participate in rebuilding the city, it is still a threat as compared to when it could have been done by the government. As a result, one may expect the aforementioned problems to hamper the success of this plan, but in this situation, the whole group is affected intensely. Basic systems are non functional, for instance, the sewage system. According to Olson’s laws on large groups, this will act as starting point to mobilize all the people of the large group since all of them are affected. Since also the issue has affected a large group of people, politicians will be more than willing to support it since it will consequently affect the way they will be voted. Therefore, free rider problem is less likely to affect the plan.
In conclusion, giving individuals cash can be helpful in helping to reconstruct New Jersey. People understand what they want most and they will opt to go for that. They will be able to prioritize their desires unlike when done by the government. Though there is a possibility of having potential members, they are minimal. The intensity of the situation cannot allow one to just sit back and wait to benefit from others. Though people might have varied interests, but it is expected that most basic facilities will be a common goal for many. As a result, I expect New Jersey to develop once the proposal implemented.