Home
/
RELIGION & LIBERTY ONLINE
/
Who Pays for Detroit’s Water?
Who Pays for Detroit’s Water?
Dec 4, 2025 2:37 AM

As I was poring over the morning news the other day, it seemed to me that every few days there is another water crisis somewhere; whether it’s California’s drought, or more recently the controversial decision in which the Detroit panies shut off the water supply to over 15,000 customers. But are we really looking at water regulation, appropriation, and the morality of shutting water off in the correct light?

Let’s start with some of the basics: Water is essential for survival. Water needs to be purified. But, how is this done? In most cities panies or public utilities offer the service of collecting the water, filtering the water, and pumping it to our homes. How should a service like this be supported in a market? It should be supported by rewarding the provider of that service with a profit, so that they have an incentive to efficiently use their resources, and make it available to the widest range of people possible. To not pay, would be stealing from the panies.

When one looks at Detroit’s predicament, which is that too many residents are not paying for their water, the residents state that they cannot afford the water bills. However, studies found that about 75 percent of residents are able to pay for things such as cable television or cell phone usage, and only 50 percent are willing to pay for water. Does this deserve an appeal to the U.N. for human rights violation? Is this a grave moral predicament? This past weekend, Detroit News-columnist Nolan Finley mentioned in an opinion piece on the subject:

This is not a humanitarian crisis, as the Netroots entitlement nation proclaims. It’s a necessary forced reordering of priorities. Water, food, clothing, shelter were never bestowed on us because we exist. It costs money to purify water and deliver it to homes. That’s why early on people began munities to share the cost of meeting mon need, and others. Charitable minded citizens have never objected to helping care for neighbors who are unable to care for themselves. But they understandably don’t have much appetite for carrying on their backs those who choose to indulge their wants before their needs.

Finley points out that as a result of people not paying, there have been increases in the water bills in an attempt to cover the higher costs of providing water to the free riders.

There is no way that the people can realistically claim that the DWSD (Detroit Water and Sewerage Department) is being unfair. It is clear that there are payment assistance options, and other options. It seems that most people are able to pay their bill; however, others believe that water is an entitlement that they should not pay for. The water shut-offs are not permanent, they are suspending the shut-offs for about 2 weeks. This is simply an attempt of the DWSD to provide incentive for the violators to resume the payments of the overdue bills and keep their filtered water services viable.

However, Michigan statute requires that all water providers are to be not-for-profit entities. This represents a misallocation of the resources. By ruling out privatization the state rules out a means for a more efficient water system. Privatization is a system that will provide incentive for pany to eliminate rent-seeking (rather than relying on government grants and regulations), maximize efficiency (in order to be rewarded by profit), and promote stewardship (by being efficient with the resources).

The renowned economist Henry Hazlitt touches on this in an article on the subject of water pricing:

None of these problems would arise under a metering system, in which the individual or family user pays for each gallon he uses, and saves on each gallon he doesn’t use. Then each family has a clear and direct incentive to economize. And in a serious water shortage, a city could raise the price it charged per gallon.

This is what the Detroit water suppliers are beginning to try to do. They realize that they need to provide incentive for people to use the water in a reasonable non-wasteful way. As it is, the residents are facing large price increases as a result of the expensive free-rider problem. Most panies have done this as well. They charge by the amount of electricity that one uses, which tends to minimize wasteful applications.

In one of the Acton Institutes publications on this subject: Environmental Stewardship in the Judeo-Christian Tradition the subject of incentives is highlighted:

The fact that property rights are sometimes not well defined and enforced is at the heart of environmental despoilment. The lack of a full rights structure means decision makers do not have appropriate incentives and information. Therefore, it is not surprising that resource misuse occurs when property rights are plete. Of course, simply pointing out the lack of adequate property rights is not a solution to the environmental problem, but it provides some general guidance. (Pg. 102-103)

What this excerpt is pointing to is that it is virtuous to do things that preserve natural resources, and it is a step in the right direction for organizations similar to the DWSD to e more efficient. It is in the public interest to operate with profit as an economic indicator of efficiency, optimal allocation, as well as reducing rent-seeking activities.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
MAID in Canada
The extreme medical suicide policies pursued in Canada have caused people of goodwill to champion the value of a single human life and note the role government-controlled medical care has in driving people to despair. Read More… “You know what your life is worth to you. And mine is worthless,” said Mitchell Tremblay, a 40-year-old Canadian man battling severe mental illness and intent on using his country’s medical suicide program to end his life as soon as possible. Currently, 10...
What Should Social Conservatives Do in 2023?
Following the work of one of social conservatism’s most prominent defenders is a good start for the new year. Read More… In 2021, for the first time in two decades of Gallup polling, America’s social ideology shifted. For the first time in two decades of Gallup polling, social liberals outnumbered their socially conservative counterparts. Although a 4% dislocation may not seem that significant, it serves as evidence of a trend many on the political right have bemoaned for years: More...
A Bond for All Seasons
From Connery to Craig, the character of James Bond, the British superspy with a license to kill, e to represent a certain kind of maleness: from toxic to tender, from selfish to self-sacrificing. But is he merely a reflection of our cultural expectations? Read More… As the producers of the venerable James Bond e to ponder how best to refurbish their hero for the uncertain times ahead—a woman, perhaps, and/or a person of color?—a small but persistent debate among film...
The Chaplain of Kyiv: From Russian Torture to Ukrainian Freedom
“What happens at war is the price we pay for normal life.” Read More… Thirty-five-year-old Viktor Cherniivaskyi is no stranger to pain. In August 2014, he was helping citizens escape a militarized zone, the product of mass Ukrainian protests, the ousting of Ukraine’s president, and the Russian annexation of Crimea. Russian soldiers captured Viktor, hooked up wires to his feet and ran currents through his body, torturing him with electricity and baseball bats for over an hour in the basement...
What Chinese and American Schools Can Learn from Each Other
It’s easy to look at the relative achievement rates of Chinese and American students and assume it’s because of the institutions. But it’s plicated. It’s also the culture, stupid. Read More… In a recent essay for the New York Times, American fashion designer Heather Kaye writes about raising her daughters in Shanghai and sending them to the Chinese public schools. Far from finding the schools backward and totalitarian, she expresses profound gratitude for the experience: “As an American parent in...
The Success of Avatar Is Nothing to Celebrate
The sequel to the record-breaking box office success Avatar is here. The enemy is still America/Europeans. The victims this time: whales. For all its technological innovation, the sheer banality of its theme is the most remarkable thing about it. Read More… The biggest box office success in cinema history, strictly in dollars taken in, is Avatar, the 2009 movie that made 3D a technology audiences would finally flock to. The movie made some $785 million in America, more than another...
Top Gun: Maverick: Our America Is Back
This sequel to a film many critics found risible in 1986 is a Best Picture Oscar nominee. How did that happen? Read More… The surprise hit of 2022 was Top Gun: Maverick, a man and machine heroic picture, sentimental and nostalgic, the sort of thing Hollywood just doesn’t do anymore. At first glance it seemed way too old-fashioned, yet it made more than $700 million in America and just a bit more than that in the rest of the world,...
Jimmy Lai Among Hong Kongers Nominated for Nobel Peace Prize
Nobel Prize or not, such an honor does not end the entrepreneur and freedom fighter’s legal battles. Read More… Hong Kong media mogul Jimmy Lai has lost a great deal. From his news outlet, Next Digital, to his rights as a citizen of Hong Kong, 75-year-old Lai now sits in a prison cell for his pro-democracy activities and may spend the rest of his life in prison under the Chinese Communist Party’s National Security crackdown on dissent of any kind....
A Priest for People with Problems
A new biography of Fr. Edward Dowling, S.J., by Dawn Eden Goldstein offers inspiration amid suffering and a role model for those seeking strength in a “Glad Gethsemane.” Read More… Being fully human plicated. Having a foot in both the material and spiritual worlds and with an originally good but fallen nature, our thoughts, motivations, and desires e into conflict, and we don’t always choose what is best for us. Indeed, the decisions we make in our brokenness plexity can...
A NY Times Journalist vs. Freedom of Religious Conscience
A recent NY Times op-ed rang an alarm bell about the Supreme Court’s supposed preference for religion “over all other elements of civil society.” This betrays a terrible misunderstanding of what exactly the First Amendment protects. Read More… Earlier this week, Pulitzer Prize–winning New York Times journalist Linda Greenhouse came out of retirement on the opinion page of her former paper to warn Americans that their nation is now on the cusp of seeing religion “elevate[d] … over all other...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved