The pollution bummer

An illegal stash of dumped waste oil was uncovered on our fair rock a couple of weeks ago. Meanwhile, the doo doo factor in our tranquil lagoon made the papers, as fecal bacteria were discovered in a number of spots along our western coast; our lagoon is a big, blue-green toilet.

There is a difference, of course, between being concerned about the environment and being a foaming at the mouth, Marx-quoting eco-loony. In Saipan’s case, though, I think everyone has some legitimate concerns about the environment.

In terms of economics, pollution is what’s known as an “externality.” You could probably get a Ph.D. merely studying externalities. An externality is a cost imposed on others when someone consumes something. For example, when I drive my car (an act of consumption), the smog coming out of the tailpipe is something you wind up breathing. You, then, are incurring a cost for my consumption. This is a rub in the free market, since it’s not a cost you chose to incur.

Actually, it’s a rub in reality too, since my car isn’t running because my pal John the Ace Mechanic hasn’t fixed it yet.

But hopefully John will heal by Detroit steed and it will continue to crank out its smog.
Eco-loonies don’t understand economic theory; they are generally authoritarian socialists who look to the iron hand of government to eliminate private property rights. Anyone with an understanding of economics, though, understands that socialism and central planning have never–either in theory or reality–been kind to the environment. Chernobyl isn’t located in Nebraska.

But we’re still stuck with the fact that externalities such as pollution are a distortion in the free market. In some cases, strict laws appear to be the most optimal solution. Consider, for example, the illegal dumping of waste oil. This is an easy one to solve. Outlawing this activity has minimal bad economic side effects, so I’m all for heavy fines, or even jail time, for scoundrels who illegally dump such things. Book ‘em Danno.

When it comes to our lagoon, government will, as well, logically be looked at to engineer a solution. I’m sure somebody somehow can cook up a rational solution to the waste problem.
Will such a solution be expensive? No doubt. Can the CNMI “afford” it? Who knows? We’re up against sort of a third-world economic mismanagement situation in which mismanagement costs the economy money, which makes the necessary infrastructure hard (or impossible) to afford, which, in turn, is a handicap for the economy.

This is no idle threat to our economy.
Remember when the Puerto Rico dump caught fire, belching thick smoke over Garapan’s skies? What kind of reaction do you think we got from the tourists? And what kind will we get if our beautiful lagoon becomes as foul as Lake Erie?

I, for one, have some serious concerns about the state of our fragile environment. The issue is whether or not something intelligent will be done about the situation. Notice I said “intelligent,” not shrill, not blindly dogmatic, not hyped. An understanding of economic principles of development and externalities would help, too, but I’ll wait for the tooth fairy to come along before that ever happens.