Running Out of Water?

I just read an article in Time online about the dwindling supply and increasing demand for clean water in the world.

It brought to mind how we allocate water right here in Sarasota, FL. Questions like disincentives for overwatering lawns; use of potable water for lawn irrigation; incentives for conservation and general resource allocation.

The article mentions water usage in the extraction of some oil. What should be done? What is the efficient allocation and what is the equitable allocation of this valuable, necessary resource? Is this a role/decision for government or the market?

All of these questions involve normative economics and present policy questions for government. Also,this is a world problem, eventually this could pose national security issues. Countries with clean water might be targets for countries that do not have clean water.

September 2011 Wall Street Protest

I read an interesting article form the Sunday New York Times about the youthful protest on Wall Street. It brought to mind the anti-war protestors and civil rights protestors in the 60s of my youth. Those displays of outrage had lasting effects on our culture. Will this protest be as significant?

As an instructor of economics, I am torubled by the dark turn our economy has taken. In this article, Kristof refers to "socialized risk and privatized profits". When we as a country allow these maniputlations of our systems, we so so at the great risk of ruin. Lovers of capitalism must stand up and develop acceptable rules of conduct and then enforce them on those who would see to profit from "special" contacts or information.

A society where 99% of the citizens are duped by a few insiders is not stable or safe. Free markets are fine, but not always subject to the complete knowledge necessary for them to be truly free. While we are contemplating fixes to the system, let's at the very least require ethics courses for our business, law and political leaders.