Transferred Costs

Financial strategist of business and industry seek to stay ahead of the game to feed the insatiable profit monster. Here is a question. What is the resource that is limited and you must have it to live? What is the one resource that in some parts of the world it is more precious than gold?

America is coming late to the game in terms of water scarcity. America treats water as if it is not a limited commodity. We use over 12 gallons of fresh water a day per person just flushing the toilet.  We use over 5 gallons  a day taking baths. There are fights among States over the Colorado River. There are fights among States over artesian wells. There are areas in America artificially created by the advent of water. Parts of California, Arizona and Texas are examples.  Remove the inflow of water and they return to desolate lands.

Business and industry knows that the water situation is going to get a lot worst. The costs of fresh water will continually sky rocket. The Strategist have come up with a simple approach for business and industry to transfer the water costs of their products to consumers. The answer is for high water content products not have the water included. They are starting to market concentrate packets of products, just a bit cheaper than the regular product.  The goal is to get you to accept the concept. The consumer adds the water and sustains the water costs. The water costs are negligible – right now.

Look for more and more high water content products to have concentrate packet versions. Soon the complete original high water content product will no longer be available. Business and industry will have successfully transferred a commodity ingredient escalating in price to consumers.

That brings up another question. How will industries that use massive amounts of water in their manufacturing or extraction process transfer costs? The manufacture of aluminum uses a great deal of water. Coal mining often uses a slurry process. Our current energy love affair with natural gas in America uses "fracking". That process requires a lot of water. 

You can believe the strategist are hard at work to covertly transfer water costs.