It is often said that “the market will sort it out.” What is often not said is that “this is not necessarily a good thing.” As an example of why this is, I’d like to point out Charlie Crist’s announcement yesterday regarding the critical water shortage in south Florida.

South Florida has undergone some of the most rapid growth (population and economic) in the U.S. over the past 25 years. The amount of baby boomers moving there is enormous and the local economy benefited greatly by way of those retiree’s retirement savings. Because of the demand for living space for these retirees, huge swaths of land were clear-cut and replaced with houses, condos, strip malls, grocery stores, and golf courses (“The only sport you can play when you’re 80”). Then there’s the resources all these people take up… Electricity, gasoline, food, and water.

If you were a gambling man 25 years ago, which of those resourced would you guess would be stressed first? Surely in FLORIDA there could never be a water shortage! Especially in the south where it rains nearly every day.

As it turns out water is going to be the first resource to go. Why? People are taking water out of the aquifer faster than it can replenish itself. Not because we’re a thirsty bunch, no. More than 50% of all water used by Floridians is used for landscape irrigation (specifically, lawns). But water is a renewable resource! Surely we can cut down our usage temporarily until the water shortage goes away? It isn’t that simple and here’s why: There’s too many libertarians and old farts in south Florida who don’t give a damn about the environment. Or to put it even more bluntly, people who will “let the market sort it out” and people who are “too old to care”—about the environment OR looking when they back out of their driveway.

There you have it. But don’t you worry, the market actually will sort it out! Even if irrigation bans are put into effect these people will still demand their lush, green lawns and golf courses. They won’t comply. Even if you have a mass-marketing campaign talking about the water crisis and that they should conserve, they won’t. Even if you double the cost of water, they’ll still pay and will still keep using too much water. Then the water supplies will have collapsed and they won’t have it anymore.

Wait a minute… How can a water supply “collapse”? Surely it will just renew itself—eventually—after it runs dry? Actually, it will never run dry—it will just be infiltrated by the ocean and will be salty and useless. Once that happens, it will take a decade for the aquifer to desalinate itself. It is one of those “market forces” that just suddenly appears with no impact on supply or demand until it is gone. A perfect example of how the “invisible hand of the market” can strangle.

How will the economy of southern Florida be effected by a sudden loss of its primary source of fresh water? Well, I’m sure it will sort itself out. Of course, there will be one hell of an economic (and environmental) crash first and it will be followed up by the kind of environmental regulations that give laissez-faire capitalists nightmares.