The Libertarian Part of Monterey County executive committee has voted to oppose Measure O, which proposes a government takeover by eminent domain of Cal Am’s water business. Not only is the state a coercive monopoly, it is also an extremely inefficient one. And that is because government has no reason to succeed since it cannot legally fail. Worse, state endeavors are often rewarded with more money and power if they perform poorly. In fact, I coined an aphorism to describe this phenomenon: “Government succeeds by failing.”
And that is what will happen if the government takes control of Cal Am. It is bad enough that Cal Am is a state-sanctioned monopoly, but a complete government monopoly is the epitome of a non-competitive process. If people want lower water rates, they need more competition, not less. That could be accomplished by allowing easy access to Cal Am water pipe infrastructure by smaller water companies.
One good example to cite is the city of Lubbock, Texas, where citizens have the choice of electric utility providers, resulting in some of the lowest electricity costs in the state of Texas. Competition always works; monopolies do not, especially those owned and operated by a government entity.
Measure O will allow the Monterey Peninsula Water Management District (MPWMD) to use eminent domain to seize the local water company. This is the type of tactic that Mussolini used in Italy in the 1930s, nationalized fully three-fourths of Italian businesses by 1935. We don’t need more government monopolies. We don’t need Italian Fascism. Vote NO on Measure O on June 3, 2014.