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This is a great illustration of the tragedy of the commons.
Giving people individual water meters instead of charging a base rate to everyone in the whole community leads to marked reductions in water consumption!
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This paper is a really clean demonstration that property rights work. The point of property rights is to have both the costs and benefits of your decisions fall upon you. If you don't face these, then you use resources inefficiently. This is the fundamental failing of socialism.
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