Water is obviously a vital resource. Is it too vital for markets to handle its pricing?
In Texas, Allan Ritter, a Republican and chairman of the House Natural Resources Committee, proposed bills that would withdraw $2 billion from the state’s Rainy Day Fund to establish a water infrastructure bank that would lend money for projects dedicated to the state’s 50-year water plan. His proposals received support from Republican leaders, the Sierra Club’s Texas chapter and the Texas Association of Business. (read the article)
Texas Republicans’ inclination is to reduce government involvement when markets can be involved, but, in this instance, previously opposing forces are cooperating to deal with what are perceived to be structural challenges. Water is essential to commerce, agriculture, energy and consumers. Current Texas politicians perceive water as too important of a commodity to be left to the markets to allocate and price.
How long will this perspective about water last? Will other states follow?