Monday, May 24, 2010

Econ 101

While there is virtually no end to the examples of how government regularly proves both its ineptitude and redundancy, this particular instance warranted inclusion in the “you’re literally too stupid to insult” category: Raleigh to raise water rate?. Seems the city of Raleigh, North Carolina, is struggling to fill a fiscal gap left by a successful water conservation campaign. While governments regularly ignore the principles of economics, this case involves the complete subversion of the law of supply and demand. Taking a page directly out of the U.S. Postal Service playbook, Raleigh is looking to raise rates BECAUSE people are using less water.

Of course, the proponents of this change will argue that the increase will amount to a very small charge per household. We can all understand the need to keep government running, can’t we? And who couldn’t afford a few extra dollars a month to ensure that government has sufficient funds to persist? Of course, as is generally the case with government, the idea of cutting back on spending has yet to enter the discussion.

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