Fire Departments And Free Markets
Many have heard about a private fire company in Tennessee that let A Mr. Gene Cranicks home burn to the ground for not paying his seventy five dollar fee. In response to this some have made accusations that this is somehow proof that a ‘free market’ does not work. The error in this is that this is nothing of the sort. There is no free market in this example. Just as many electric and gas companies are inefficient so will any other company that is granted a monopoly by the state. This shows the terror of a monopoly granted by the state. Privatizing and profiting is not in any way a free market concept. This is an example of not having any other company to turn to. A state granted monopoly did fail. And this is expected of a state granted monopoly
UPDATE To be more accurate in this case putting out the fire had nothing do do with any business decision, but it was a mandate of city ordinance. Can someone tell me how a city ordinance is Laissez-faire?
The fire that sparked the controversy apparently broke out about 2:30 p.m. Wednesday at Gene Cranick’s property on Buddy Jones Road, located outside the city limits of South Fulton.
Vowell explained that the property owner was not a paying member of the rural fire subscription service offered to county residents by the City of South Fulton. He said as per city policy, established by city ordinance, the call was declined and the city’s fire department could not respond.via NWTN Today
What do you do when state monopolies and state granted monopolies fail you? You watch your house burn because there is no one else to turn to. You had better believe if they were to refuse and watch this mans house burn and the competition were to become ‘the hero’ that the publicity would no doubt help the competition and hurt the fire department that failed. I would venture to say that this fire department may be closing it’s doors soon and the repercussions of such a thing on the free market would be devastating.
But, this company will thrive without repercussion it will not go under because of it’s ill deeds, or lack of human compassion. It will continue to operate with its government granted monopoly.This is a wonderful example of why monopolies fail and free competition could have saved this mans home.
UPDATE:
George Donnelly had a wonderful commentary and article on this subject that was recently brought to my attention
Non-state firefighting services are not a panacea. Some houses may burn down due to the failure of homeowners to plan ahead. But libertarian firefighters have the capacity to be flexible in payment options. This is one reason why they are superior. Libertarianism promises greater accountability, not a perfect world. Under libertarianism, it will be easier to hold people responsible for their actions. This will in many cases produce better outcomes. No longer can corporations wantonly pollute the air. No longer can states commit genocide in the name of national defense.
Also See the Article At Reason: Let it Burn or Not? Fulton Fire Department Follow-up: Updated with Mangu-Ward Video!
UPDATE:
I was asked about the specific laws regarding this state sanctioned monopoly:
Last year the General Assembly enacted the “Fire Department Recognition Act,” 2003 Public Chapter 312 now codified at T.C.A. §§ 68-102-301 through 68-102-307. This act became effective on July 1, 2003. Today, no county, municipality or other organization, agency or entity is allowed to operate a fire department in Tennessee unless it has been duly recognized by the Tennessee Department of Commerce and Insurance, State Fire Marshall’s office.
Fire departments in existence before July 1, 2003 were required to file an application and receive approval by the State Fire Marshall’s office in order to continue to operate. Upon being recognized as a fire department, the State Fire Marshall issues a certificate of recognition to the department that is valid for a period of three years. Once recognized, the fire department is classified as career, volunteer or combination.
After July 1, 2003, no new fire department may be established or recognized within Tennessee without the approval of the local elected governing body. Therefore, a volunteer fire department cannot be formed and operate in the unincorporated areas of a county without the approval of the county legislative body.
Unless a fire department has a certificate of recognition from the State Fire Marshall’s office, it cannot solicit or receive money from any governmental source. Therefore, a…
found at The University of Tennessee Institute for public service
It appears that South Fulton has removed the page linking to the ordinance that mandated this poor mans’ house burn for non-payment. But google cache is a wonderful tool and these ordinances and more can still be found here. I uploaded a PDF of the fire departments ordinances here.
What better way to operate your monopoly business? It essentially gives the managers of these fire departments say over who can operate a similar business. I would love to be in a business where all competitors had to come to me by law before opening a competing company.














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