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No it doesn't. The government pays market prices for lots of things.
by harryh 12y ago
No it doesn't. The government pays market prices for lots of things.
- sp332 12y agoRare things?
- harryh 12y agoFresh water isn't particularly rare. I don't understand what the point of your question is.
- sp332 12y agoCalifornia's demand for water at current prices greatly exceeds supply. Continuing to farm at current rates will deplete water reserves within a year. That's why I mean by rare.
- harryh 12y agoAh yes. Well this just indicates that the government regulation of the price is leading to a mispricing. The gov't could simply let the price float just like most other products and then buy it at that rate just like most of the other things it buys.
- rayiner 12y agoThe fact that demand exceeds supply when water is basically free doesn't mean it's rare or would be unaffordable if priced correctly. There are tons of affordable things where demand would exceed supply if you priced it at ~0.