When writing about
the Golden State, I generally focus on fiscal policy. After all, California is
trying to become the France of America by imposing punitive tax rates and continuously expanding the burden of
government spending. And since this
leads to the loss of jobs and competitiveness, California offers a helpful reminder that bad
policy has consequences. But let’s now look
at another example of misguided policy in California. The state is suffering a
drought, which obviously isn’t the fault of state lawmakers, but policies
imposed by those lawmakers are turning the drought from a problem to a crisis.
The liberals who run California have long purported that their green
policies are a free (organic) lunch, but the bills are coming due. Lo, Governor
Jerry Brown has mandated a 25% statewide reduction in water use. Consider this
rationing a surcharge for decades of environmental excess. …During the last two
winters amid the drought, regulators let more than 2.6 million acre-feet out
into the bay. The reason: California lacked storage capacity north of the
delta, and environmental rules restrict water pumping to reservoirs south. …no
major water infrastructure project has been completed in California since the
1960s. Money is not the obstacle. Since 2000 voters have approved five bonds
authorizing $22 billion in spending for water improvements. Environmental
projects have been the biggest winners. …studies show that mandates and
subsidies for low-flow appliances like California’s don’t work because people
respond by changing their behavior (e.g., taking longer showers). Despite the
diminishing returns, Mr. Brown has ordered more spending on water efficiency.
In other words, the
government-run system for collecting and distributing water is suffering
because of a failure to generate enough supply and because non-price mechanisms
aren’t very effective at limiting demand.
So what would work?....To Read More….
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