Tuesday, May 30, 2006

The Private Sector and Water

The L.A.Times reminds of how much of California used to get water:
In the late 19th century, private companies delivered water to most of the state's homes and businesses. Today about 80% of the state's people live in large cities and towns served by publicly owned utilities. About 140 for-profit companies provide water to more than 6 million people, mostly in suburbs and smaller communities.

Supporters of government-run water systems point out that they, unlike investor-owned utilities, do not need to pay taxes or produce a profit. But big companies contend that they can operate with less overhead per customer.

At the core of the dispute are philosophical differences over whether an indispensable resource should be controlled by private firms.
There really aren't any "public goods".