Home
/
RELIGION & LIBERTY ONLINE
/
Who Pays for Detroit’s Water?
Who Pays for Detroit’s Water?
Jan 22, 2026 5:44 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
From CARES to worries: The post-COVID economy calls for bold entrepreneurship
After months of facing the coronavirus, Americans now face a spreading virus of evictions. More than 5,845,000 Americans have tested positive for COVID-19 since it reached the United States. As a result, almost 18 million people have lost their jobs or were forced to remain at home in order to protect themselves and their families from the novel coronavirus. Beginning at the end of March, the CARES (Coronavirus Aid, Relief, and Economic Security) Act, passed by Congress and signed into...
Donald Trump’s bad prescription for drug prices
The final night of the 2020 Republican National Convention included powerful lines promoting the Trump administration’s drug price policies. President Donald Trump claimed that his recent executive orders on drug prices “will massively lower the cost of your prescription drugs.” His daughter Ivanka likewise said that her father “took dramatic action to cut the cost of prescription drugs.” In 2015, U.S. Americans spent more than twice the OECD average on prescription drugs. Trump signed a price control-based executive order in...
Jimmy Lai verdict expected this week
Like his fellow Hong Kong citizens, Jimmy Lai faces a date with destiny. A Chinese judge will decide on Thursday whether the Catholic dissident publisher goes to jail for up to five years over trumped-up intimidation charges. Lai stands accused of purportedly intimidating a reporter at a Tiananmen Square memorial in 2017. But the evidence shows Lai should have felt threatened. The Apple Daily founder says the reporter has stalked him for years on behalf of rival Oriental Daily News,...
Thank God for single-use plastic bags
Perhaps the only positive thing e from the COVID-19 global pandemic has been the way it exposed a raft of never-needed regulations imposed by every level of government. Unfortunately, rather than repealing one such ordinance which could contribute to the spread of the coronavirus, the UK’s Conservative government has literally doubled down. The government-mandated cost of single-use plastic bags at groceries and stores will double, from five pence each to 10, beginning next April. Environment Secretary George Eustice also announced...
Kellyanne Conway and America’s politically fractured families
Kellyanne Conway likely gave her last public speech in her role as White House adviser on Wednesday night at the Republican National Convention. The Conway clan’s political divisions mirror the growing bitterness that has e ingrained in families nationwide as America es more politicized, more secular, and less tolerant of philosophical diversity. The Conway family’s carnage has played out painfully on social media. Kellyanne Conway distinguished herself as a pollster before guiding Donald Trump’s successful presidential campaign. She has served...
Justice demands ‘Just Money’
Widespread civil unrest, social media fueled hysteria, and political polarization have infected our public life. Vice President Joe Biden suggested on Monday that these problems have been fomented by his opponent. President Donald Trump likewise suggested that it is his political opponents, including Vice President Biden, who are responsible. Both answers are politically convenient for the candidates but fail to take into account the international nature of the revolt of the public against elites of all parties and cliques. Our...
Acton Line podcast: Using social media for good with Daniel Darling
On February 4th, 2004, a sophomore at Harvard University by the name of Mark Zuckerberg launched TheFacebook. At the time, the social networking website was limited to only students at Harvard. And while other social networking platforms like MySpace and Friendster predated the launch of Facebook, it was that February day in Cambridge, Massachusetts that the age of social media was truly born. Today, Facebook boasts 2.5 billion active users, is available in 111 languages, and is the 4th most...
How to beat the ‘social recession’ of COVID-19
Before the COVID-19 crisis began, America was already facing a severe loneliness epidemic – marked by decades-long increases in suicide and chronic loneliness and declines in marriage munity attachment. Now, amid flurries of sweeping lockdowns, the struggle has e harder still, pushing any remnants of munity deeper into the confines of social media. We are facing a “social recession,” argues the Manhattan Institute’s Michael Hendrix, driven by a mix of stress over public health, economic anxiety, and the isolating effects...
Jimmy Lai innocent, Pope Francis silent on Hong Kong
A court has found Hong Kong dissident Jimmy Lai not guilty of intimidation. But that does not mean he, or Hong Kong, can rest easy – especially as he faces the prospect of life in prison without any public support from the most important institution in his life: the Vatican. As global political and thought leaders denounce Beijing’s encroachments, Pope Francis remains uncharacteristically silent. Lai, the self-made billionaire publisher of the Apple Daily newspaper, could have been sentenced to five...
C.S. Lewis and Nicolás Maduro on Venezuela’s plunging birthrate
The birth of a child is life’s greatest joy – unless a dictator is asking you to have children to increase his personal power base, and he has destroyed the economy so badly that you can’t feed yourself. That is the situation in Venezuela. “Every woman should have six children for the good of the country,” said Bolivarian socialist Nicolás Maduro in March. He urged the nation’s women to “give birth, give birth” in order to “grow the country.” In...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved