Again, none of that applies in the California alfalfa case. Senior water rights are a rent. The externalities aren’t important because if they paid a fair marke

Again, none of that applies in the California alfalfa case. Senior water rights are a rent. The externalities aren’t important because if they paid a fair market value for that water, it wouldn’t be profitable to grow. Capitalism is unnecessary here; a feudal lord with the same fief on water rights would do the same, capital investment is irrelevant. The trade happens because the government granted a rent, effectively paying to make Imperial Valley farming profitable. Look, I believe in late-stage capitalism as much as the average liberal arts professor, but it’s stupid to blame all problems on it.