Friday, January 13, 2012

Aging Infrastructure in the US

This post is dealing with he article which we discussed in class.

http://www.statesman.com/news/statesman-investigates/growth-of-large-private-water-companies-brings-higher-2038684.html?viewAsSinglePage=true

This is a very intriguing article. If you that the article at face value I believe you will see that it is unfair to charge people for such a necessary resource like water, especially without a reason or much government regulation for the price they charge.

However, if you look into the reasons why the privately owned companies may be raising the price for water I think you might also see another bigger issue in our country. They mention in the article that much of the rate increase is going to repairing the infrastructure that in many places didn't meet minimum environmental standards. This deterioration of infrastructure isn't limited to water systems in rural Texas, it spreads throughout the United States with aging bridges, levies, and many other publicly owned structures that were mostly built years ago during Roosevelt's "new deal". The publicly owned deteriorating infrastructure is being repaired at a painstakingly slow pace by our government. The private water companies in rural Texas are doing a better job at repairing the infrastructure and charging those who benefit from it. If the government is having problems repairing the infrastructure on such a tight budget, isn't it more efficient to have a private entity repair the issue and isn't it fair to charge only those who benefit from it instead of relying on tax dollars from the general populous and hope the repairs come? So perhaps there is a slightly more palpable reason behind the rate increases than the greedy nature of capitalist America?

5 comments:

  1. I agree, Nick. I don't believe that government should be charging people for things they don't really use.

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  2. Typically, I think the federal and state governments are responsible for their country's infrastructure. But in this case, we are dealing with water. People need water at an affordable price, everyone in this country is entitled to at least clean water, seeing as we are not some third world country. However if these private water companies can repair the infrastructure quicker then they should do it. The price of water will go up and people that benefit from it will have to pay for it. That is just how it will have to be. People need water.

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    1. I agree with this and what Mike said. If a private company can do it quicker and more efficiently then the private companies should do it. I also agree that if people are not using a certain thing then they should not be charged for it.

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  3. I dont think that the money for a new infrastructure should come from raising the prices of the service which in this case is water...something everyone needs in daily life. I agree with Jon that the government should be held responsible for these kind of repairs.

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  4. Because these particular individuals do not have a choice between using private water and city water(for example, the neighbors are able to use city water for 60% less), I don't think it is fair to charge only the individuals who use the water. Was it Mr. White's choice be supplied water by a private company. If he does not have the option to change providers, but needs water, what can he do? Competition is what makes an economy more efficient, but it doesn't seem like the private water company has any competition for Mr. White's service. I think this is a real issue.

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