Synthesis

https://upload.wikimedia.org/wikipedia/commons/thumb/4/4f/US_Capitol_west_side.JPG/1200px-US_Capitol_west_side.JPG

The economic principle I examined was institutions are the “rules of the game” that influence choices. There are many situations where this economic principle can be applied to the real world. For instance, while studying environmental regulations and its effects on the economy I found many examples of this principle. First, the EPA. The EPA is the main environmental institution in the United States, it regulates all industries and directly affects the choices they make and what they are allowed and what they are not allowed to do. Failure to comply with the EPA and their rules and guidelines can result in major consequences such as fines, loss of license or permit, or loss of work. This shows just how powerful a force the environment really is because the government is willing to put its own businesses through so much to ensure its protection. Second, is the European Environmental Agency. This agency is the European equivalent to the EPA but they play by some different rules. This agency is much more proactive in their approach to helping the environment. Instead of waiting until after the damage is done by a product or an industry and then fixing it, if there is even a slight chance that a certain practice may harm the environment it is shut down until it can be proven to be safe of is fixed to be safer. This demonstrates that the institution of European culture and how highly they value a clean environment affects the institution of their agency to protect the environment. Third, is the United States congress. Congress has been responsible for implementing many environmental acts and laws, that in turn have directly affected businesses and how they must adapt. Two of the main things that this institution has done regarding the environment is pass the Clean Air Act, and the Clean Water Act. Specifically This means that as the main law making institution of the United States, congress has taken a role in protecting the environment. This shows that even though the U.S. may not prioritize the environment as highly as other nations do, it is still a primary concern that does get attention in our country, but this concern has come at a cost on the local level, causing some job loss and forcing some corporations to move either somewhere locally or somewhere overseas. Overall, you can see that while the economy is very crucial and important to our world, it is in a constant struggle against the environment to gain priority in the eyes of elected officials. In general, one cannot be changed without affecting the other and as a global community it is our responsibility to find a balance that helps foster prosperity among men and among nature.