Ethics and Economics

The Amateur Radio Club I belong to was busy discussing a recent news item about a Fire Department that had let a house burn to the foundation because the owners had not paid an annual subscription for fire protection. The general consensus was that it was probably illegal and certainly immoral to refuse to put out the fire. While I can agree with the sentiment that standing by and watching a house be consumed in flames reflects poorly on the ethics of the department I certainly needed to research the issues before I reached a personal determination about the actions of the fire department.  For the second time in a year the South Fulton Fire Department in Obion County TN made the news by refusing to put the wet stuff on the red stuff because the homeowner had not paid an annual $75 subscription for their services. While the department’s action is really poor public relations a little research tells more about the issues.

The Town of South Fulton has a fire department that is financed by the taxes of the people living in town. The fire coverage for the town is paid for by the taxes paid by the people who live and work in town. Obion County on the other hand does not provide any fire response and from what I’ve learned refuses to allow the formation of a volunteer department that could provide fire coverage outside the town. So if you live outside South Fulton the Town doesn’t provide any coverage unless you pay an annual $75 subscription. The philosophy is that the townsfolk shouldn’t be expected to provide services free of charge to people who don’t pay to support the fire department.

The two fires that cost county residents to lose their home were the result of these two homeowners hedging their bets. The chose not to pay the annual fee for reasons that made sense to them and they lost their bet. There was some argument that the people [probably couldn’t afford the coverage, but it seems to me that if you can afford to make payments on a house you can probably afford $75 for what is essentially insurance. I’m willing to bet that the residents of the destroyed homes most likely had made more than one purchase of a non essential nature that cost more than the $75 subscription.

The issue for the Town and the Fire Department is that it costs money to staff , equip and operate a fire department and if they put out fires for people who refused to pay for the service in no time at all no one would pay for the service and (I’m sure) the department would go out of business. A few of the people with whom I was discussing the story don’t agree with my thoughts, but then again they are people who have trouble understanding economics and the reality that we are all responsible for the results of our action. The people who lost their homes had a choice and they refused a voluntary contract by choosing to keep their money. The rolled the dice and lost and the community should not have to pay the cost for their short sightedness.

Christmas is upon us

With Christmas fast approaching the time for seasonal decoration of the house is here. My Lady revels in the opportunity to make our home glow with the recurrent story of life and hope. In preparation for the makeover I’ve been listening to Christmas music and this is one piece that I think exemplifies the time of year.

http://www.youtube.com/watch?v=45VGDNHJ4Zo

Enjoy and anticipate the season