Economics Is Simple …

… The Fat Cats Just Want You to Think It’s Complicated So That You Won’t Demand Change – Published on Global Research.ca, by Washington’s Blog, December 23, 2010.

… The White House and Congress (having received a lot of contributions from the big water companies), and the Federal Water Reserve – a quasi-governmental agency owned entirely by the big 5 water companies – decide not to crack down on the big 5 water companies. Instead, they exempt them from pollution laws by relaxing reporting requirements so that the companies don’t have to report how much oil and gas pollution has really gotten into the aquifiers. Indeed, the government let’s the big companies write the rules for a series of highly-publicized “stress tests” which are simply a P.R. ploy to reassure the public that the water is safe and the companies sound, even though neither is true. 

The government and Federal Water Reserve also buy all of the polluted water in the aquifiers at 100% of the normal price for clean water (and used it for security for cheap loans to the big water companies), and that water is stockpiled in the bowels of the Federal Water Reserve building (even though the high petrol content makes the water highly flammable, and thus a fire hazard). So instead of the water companies having to pay for their toxic pollution problems themselves, the government takes care of it … at the taxpayers’ expense.

The government also taps into it’s emergency water supply, and gives all of the water to the big 5 companies to help them through their “temporary” water shortage. Americans are starting to get thirsty, but the big 5 don’t sell to average Americans. Instead, they use most of the water in their oil and gas mining operations (it takes a lot of water sprayed on the rocks being drilled to keep the dust down). The big 5 sell some of the water to fat cats who already have lots of fresh water in private ponds and storage tanks, and stockpile some of it. The average American on “Main Street” gets thirstier and thirstier.

The government also props up the big water companies by giving them all sorts of subsidies, incentives and business opportunities which guarantee that they’ll make money. The government offers none of these to smaller water companies, and actually penalizes smaller water companies by charging them extra fees to pay for the misbehavior of the big companies.

The American people become thirstier and thirstier, and without water to grow crops, put in their cars’ radiators, or even wash their hands, America becomes poorer and living standards decline.

The big water companies try to make the situation seem extremely complicated, so that only the “experts” can understand it. By making things seem complex, the American people won’t feel competent to demand changes. Indeed, they even promote academics who are trained to ignore the real world and instead focus on highly complex – and unrealistic – models.

But the situation is actually simple. Things haven’t improved, and won’t improve until:

  • The government gets back to the real system – that is, actually delivering water – instead of ignoring water and stressing the artificial paper profits or oil mining operations of the big water companies
  • The big water companies are broken up, so that smaller water companies focusing just on H20 can step up to find clean water and sell it to normal Americans
  • The big companies are forced to clean up the polluted water, and the illegal mining operations of the big companies are prosecuted.

Simple, isn’t it? (full text).

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