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The free market is waiting until there's only a few puddles of freshwater left and charging a million dollars a sip, as the Colorado River is proving[1] (or ove

The free market is waiting until there's only a few puddles of freshwater left and charging a million dollars a sip, as the Colorado River is proving[1] (or overfished waters, or all sorts of things). It's terrible at being proactive, it only benefits a company for exploiting a resource until it's gone, and ratcheting up the price until it is[2]. [1]: https://utahrivers.org/blog-post/2021/12/13/new-report-upper-basin-states-overusing-colorado-river-water https://utahrivers.org/blog-post/2021/12/13/new-report-upper... [2]: https://www.forbes.com/sites/drewhansen/2016/02/09/unless-it-changes-capitalism-will-starve-humanity-by-2050/ https://www.forbes.com/sites/drewhansen/2016/02/09/unless-it...

highwaylights 4y ago
The free market as a religion is a phenomenon that’s pretty unique to the US, though starting to metastasise around the world too. American polarism (e.g. if you suggest there’s a single negative consequence to capitalism you’re automatically a communist) is spreading at the same time. I think we should all be concerned about the consequences.
someguydave 4y ago
California environmentalist activists on the Costal Commission refuse to allow desalinization which is what is truly threatening the Colorado river.
radford-neal 4y ago
"The free market is ... terrible at being proactive, it only benefits a company for exploiting a resource until it's gone ..." To the extent that this happens, it's not unique to a free market economy. The Soviet Union was notable for causing environmental devastation. Theoretically, if real interest rates are sufficiently high, it might be profitable to, for example, over-fish some species to extinction, since the present value of future catches declines exponentially with time, according to the interest rate. However, for the past few decades, real interest rates have been at historically low levels, so it's hard to see this as an explanation for any current short-sighted behaviour.

highwaylights 4y ago

The free market as a religion is a phenomenon that’s pretty unique to the US, though starting to metastasise around the world too. American polarism (e.g. if you suggest there’s a single negative consequence to capitalism you’re automatically a communist) is spreading at the same time. I think we should all be concerned about the consequences.

someguydave 4y ago

California environmentalist activists on the Costal Commission refuse to allow desalinization which is what is truly threatening the Colorado river.

radford-neal 4y ago

"The free market is ... terrible at being proactive, it only benefits a company for exploiting a resource until it's gone ..." To the extent that this happens, it's not unique to a free market economy. The Soviet Union was notable for causing environmental devastation. Theoretically, if real interest rates are sufficiently high, it might be profitable to, for example, over-fish some species to extinction, since the present value of future catches declines exponentially with time, according to the interest rate. However, for the past few decades, real interest rates have been at historically low levels, so it's hard to see this as an explanation for any current short-sighted behaviour.