Huh? Generally people like to talk about "pricing externalities" but they generally mean they want to price YOUR externalities and not theirs. For example, they will say: you don't pay enough for gas due to blah blah blah. But then they don't have a replacement number of kids and would freak if you upped their social security contribution. I think you can make arguments, though, for free bus service to avoid building new roads, to cite an example of something that is not free but seems to be. Did I understand the question? -XC
I understood the statement to mean that the state takes things that would otherwise be free and adds barriers of entry to the use of them. I was looking for an example of this. I could have misunderstood the statement too.
Oh, well, professional licensing for most things is a state supported barrier to entry. Do you really need "barbershop inspectors?" I think you can have a good rousing discussion of private licensing (think Underwriter's Lab's) versus government licensing on most thing. -XC