The Daily Reckoning put out some information about investing in water that I thought provided an interesting perspective people should consider who live in areas where water is hard to come by. If water becomes a rare commodity its price goes up and people who hold stock in water benefit not citizens who live in cities were they are paying continuously higher taxes and fees as water scarcity increases. By trading stock in water, the incentive is decreased to keep the price of water down and to take pragmatic steps to increase the amount of water in our reservoirs and rivers. Think about it for a moment. Stalk holders in water commodities need a return in their investment. That profit can only come from the investment federal, state, and countries make to counter the effects of water shortages. If the drought were to end and the reservoirs and rivers were back to flowing at their capacity then citizens are less likely to accept spending tax funds on water conservation projects. If citizens do not spend tax funds on water conservation projects then how will stockholders in water commodities make any money? Citizens must then be kept in perpetual fear in order to justify spending on conservation programs that fail to ease the annual ritual of fear associated with drought, taxes and fees. This is not to say that leadership has an official plan to keep citizens in fear, only that this is the inevitable result of failing to use imagination to solve a problem like water shortages.
There is a method that if used could quickly increase the water in our reservoirs, lakes and rivers.
Press the title to read more about what leadership can do to help.
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