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Old August 25, 2016, 11:57 PM
sandalwood
 
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Default Re: The problem of the water supply, business, and government...

Quote:
Originally Posted by Dien Rice View Post
Thanks Richard - I always enjoy reading your writings...

I agree government is inefficient and maybe it being run more like a business could make it more efficient. I ain't no expert in that.

There are probably cases to be made both ways. I think it might not be that simple too.

My late father was an economist, and one thing he talked to us about (when he got into "economics mode") was something called "natural monopolies."

Some services are best run as a monopoly. For example take the water supply. Let's say it is run like any business with competitors. It would mean that any business could run water pipes to your house. You could have 10 different companies running different water pipes to your house. This would not be efficient at all. That's why the water supply is called a "natural monopoly."

Now say that it is run as a private business with no restrictions. What's to stop the water company from charging you an exorbitant rate for your water? Because it's a "natural monopoly," if there were no government controls - you'd probably be paying exorbitant rates for your water. That's one example where running a government can be different from your "usual" business.

Just thought I'd throw that in there... I always enjoy your posts.

Best wishes,

Dien

Dien,

Your water example is a good one. Where I live we are constantly bombarded by the guvmint run water authority to conserve, conserve, conserve. They have even instituted penalties against people who they perceive as being non conservationists.

That's on one side of the ledger.

On the other side of the ledger is their fee schedule. A citizen can buy unlimited water usage for a certain price per month. Currently it is a little bit over $100 with no penalties attached.

Your example explains how our local one guvmint agency does everything you mentioned. I guess we're ****ed either way, hunh?

I think the US should make Australia a possession and transport all your water to our current drought stricken regions. This would benefit both countries. We'd get the water and you'd learn how to become more self reliant. OK, that was a joke but what's a poor working class schmuck supposed to do?
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