Press "Enter" to skip to content

Just an Observation

In a market driven economy, those who buy products and services in bulk usually do so at a discount. Think about your last trip to a warehouse store. Buy more, and pay less on a per unit basis. Or, think about the last membership offer you received. Your discount was higher for a three year commitment than it was for a month to month commitment.

Keeping all of that in mind, read how different the situation is if the “product” comes from a government entity (subscription) as described in this article by Sean Olson:

The city-county water board tonight could close a loophole that lets some high water users escape penalties for hogging water in the summer months.

The board will take up an amendment that would affect the top 1 percent of residential water users in Albuquerque, who officials say account for 5 percent of total residential water use.

It would impose higher penalties on about 1,500 residential users who use large amounts of water in the winter months, defined by the Albuquerque Bernalillo County Water Utility Authority as December through March, water authority executive director Mark Sanchez said Tuesday.

For example, the No. 1 residential water user had a $2,989 water bill in 2007. Under the proposed change, it would be $4,811. The 2007 bill that included sewer services was $4,335, and that would increase to $6,157.

The proposed amendment would charge $1.41 extra per unit of water to customers using more than 84 units per month in the summer, Sanchez said. Another $1.41 would be added for every unit above 112.

Why the difference? Simple. This is a classic example of how government run services work. 99% of the users have absolutely no idea what the real cost of water is. They comprise 95% of the water usage. Yet, since they are not responsible to pay real costs, they have no motivation to reduce unnecessary water consumption. Instead, the 1% that use only 5% of the water will be taxed. Will the tax make a difference? Probably not. Since these users either need the water, or find the higher water rate cheaper than fixing the leak that might be causing it.

For a moment think about all of this in terms of the recent spike and decline in gas prices. Everyone felt the pinch, and all of sudden people were driving slower and coming up with solutions to minimize their consumption. Everyone was equally hit. People who operate fleets of vehicles were not charged a premium, nor were those who operate less fuel efficient vehicles. This is a much better approach. Sure there has been public outcry about higher gas prices, but conservation is much more likely in this scenario.

Now, think about all of this in terms of universal public health care, and you’ll understand why it is such BAD IDEA.