America and places beyond have heard the story about how firefighters in Obion County, Tennessee let a house burn down because the homeowners, the Cranicks, had not paid the $75 annual firefighters’ fee. (The department is from South Fulton, but serves areas in the county beyond the South Fulton city limits.)
At Reason.tv, there’s a video from Russia Today in which Reason editor Katherine Mangu-Ward discusses the incident with progressive journalist Mike Elk of In These Times. Libertarian Mangu-Ward is sharp, but the left-of-center Elk easily gets the better of her in this exchange.
There are a few quick points that might have made Mangu-Ward’s position stronger. I think she should have led with them.
First, it’s not a free market in firefighters’ services if the annual fee is merely a service charge, with no other option for services. A market would have more than one supplier. South Fulton, Tennessee doesn’t have a market in firefighters’ services — it has one government provider that passes a tax along as a voluntary fee. (South Fulton’s firefighting services are, in fact, a government monopoly.)
Second, a market would have allowed the Cranicks to pay a greater amount when a fire actually threatened their house. Pricing based on shifting demand is a hallmark of a free and properly functioning market. The homeowners would have had the option of paying a $75 annual fee, or paying far more ($500, etc.) when fire struck. In fact, the Cranicks made that very offer, but authorities refused it. That refusal is economically irrational, and demonstrates that officials in South Fulton weren’t operating under a market-oriented model of firefighting services. Instead, local officials operated under a destructive policy of spite, allowing a home to burn even under an offer a large payment for services.
Third, very few firefighters would watch a house burn. The inaction of the Tennessee department is, to put it mildly, unusual. (So odd that nearby departments have expressed outrage.)
Here’s the video of the discussion — see what you think:
Reason magazine Senior Editor Katherine Mangu-Ward argues that people should be able to pick and choose (and pay for) the services they want, including fire protection, on Russia Today’s The Alyona Show on October 5, 2010.
Approximately 9.16 minutes.