Very little water is in "public" hands, just to be clear. And a lot is leased from the states/government. That said, I am not as committed to the good of capitalism as you appear to be, but I hear ya. Ayn Rand would agree ;-)
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I know that water is not everywhere in public hands. But in Germany where I come from there is a public water supply instead of companies selling it.
But in my point of you, you have to divide into should be public and should be private.
Public should be everything which is necessary to live on.
Private everything else.
Yeah, I know, it's very liberal and much capitalism :D
Haha, fair enough.