The state of California is experiencing a drought and all of the state’s residents have been urged to curb and limit their water usage. Governor Jerry Brown told reporters that he has consumed less water and has cut back on hygiene. In fact, he told reporters in San Jose that he had not taken a shower and his household has “installed a low-flow system and we’re using it quite carefully and quite sparingly.”
Well, these token gestures may be good publicity stunts, but one economics blogger isn’t having any of it. In fact, he’s thinking about the drought matter while taking long showers and leaving the water on as he shaves.
Robert Wenzel, the editor and publisher of Economic Policy Journal, wrote Tuesday:
“If we are going to go absolutely stupid and rank water use in a totally non-free market manner, the Governor is not going anywhere near where he should be in cutting back on his water use. There is no indication his security team is cutting back on their showers. Further, I have seen him around town with his security detail and it looks to me as though his car and that of his security team are washed regularly. And I know for a fact that he flushes after every piss. Why doesn’t he post signs in government buildings that flushing after a piss should only occur at the end of the day, say, after 3:00 PM?
“If Brown wants to be a water commie, and pretend that it is sane to allocate water based on a central planning method, then he personally should set an example and be much less of a water pig.”
The issue currently transpiring in The Golden State is an economics one. The price of water has been placed under market clearing prices, which create shortages. In addition to that, the state and local governments are trying to use central planning methods to improve the water situation. This will further intensify the statewide water shortage. Simply put: with water prices at market rates, it would both encourage conservation and development of new water sources.
Is it time to privatize the water sector? The answer is irrelevant because California would never do it. Instead, it wants mandatory rationing.
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