As I was poring over the morning news the other day, it seemed to me that every few days there is another water crisis somewhere; whether it’s California’s drought, or more recently the controversial decision in which the Detroit water companies shut off the water supply to over 15,000 customers. But are we really looking at water regulation, appropriation, and the morality of shutting water off in the correct light?
Let’s start with some of the basics: Water is essential for survival. Water needs to be purified. But, how is this done? In most cities water companies or public utilities offer the service of collecting the water, filtering the water, and pumping it to our homes. How should a service like this be supported in a market? It should be supported by rewarding the provider of that service with a profit, so that they have an incentive to efficiently use their resources, and make it available to the widest range of people possible. To not pay, would be stealing from the water companies. (more…)