Friday, April 19, 2013

Business and the Environment-good business?

        I have heard and read a lot of things about how environmentalists are hurting businesses.  I look at it as helping businesses to be more efficient.  Everything that flows out of a business and is not sold or in some way increasing a profit margin in some way is money that is thrown away.  I think about the fact that any chemical most likely has a way of being broken down or changed into a product that can be used in some other product and then sold at a profit in a market that they have not been a part of.
       Any company that can reduce its total marginal costs below that of its competitors can gain a market advantage in an open market.  It can potentially gain economic profit.  Economic profit is when a company is able to benefit from the gain it has made.  People either complain about the government having too much control or not enough control.  It really depends on who is talking about it.  People that feel that they are being harmed by the government such as taxed too much or being negatively impacted in some way believe that the government is doing too much to control the markets.  An example of this would be the owners of companies that have been complaining about the new Health Care Act, known as Obama Care.   An example of those who believe that the government is not doing enough are those who are losing jobs due to jobs being transferred to other countries.  They want the government to put tariffs or quotas in place on imports of certain items coming into the United States, in order to raise the price of a product so that the total cost of a product is selling at a point where producers in America can compete.  I personally feel that the purpose of government is to attempt to balance markets out, such as getting them to pay for the cost of doing business, such as the cost of pollution.  
wikipedia links to help explain some of the terminology
http://en.wikipedia.org/wiki/Import_quota

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