Mechanism

Human life is the same as the market mechanism.

The market mechanism can be defined as the technique used to allocate resources. In the UK, we follow the form of a mixed economy where all of our resources are split up between the private and the public sector. The other two types of markets are planned, where all resources are allocated by the government, and a free market where resources are left to be allocated by individuals.

When individuals are left to allocate resources for themselves huge problems usually arise. This is known as market failure. The market, if left alone, is not allocating resources efficiently. For example, a monopolistic company can set high prices for its product, meaning only the rich can access it. Without the interference of the government to implement competition policies or laws, the company can get away with being very inefficient.



If humans are to be left alone then we shall face huge inefficiencies. We are already seeing them today. The world is a finite place.
For example, we are producing more CO2 emissions than the plant life can absorb. we are allowing the sun's radiation into our atmosphere by omitting pollutants . We are wasting land by feeding our demand for meat. We are filling up land-fill sites. We are using machines that damage our organs. We have made a majority of the world poor, whilst the minority are rich. We are over -fishing many oceans. We are over-consuming many resources.

Humans are running on a free economy. Our government is nature itself.

Control

The AA have just completed primary research which shows that the wholesale price of fuel, the price that retailers pay for it, has actually gone down. the AA have said that the price of petrol should have been decreased by as much as 10p-11p. Instead, we find ourselves with rising fuel prices.

This phenonenom shows me quite a few things about our economic climate and brings up certain conditions. Firstly, companies have control of natural resources and are limiting its use to the population. Secondly, the government are taxing fuel and are showing no sign of decreasing this rate. There are reasons why they are doing this.


The seriousness of the statement "Companies have control of natural resources" should not be underestimated. In essence, the equitability of items that are available to us is limited and thus our lives are beginning to be changed because of this. Philosophers ponder the meaning of life, but they certaintly do not forsee it to be in a place where we are limited to what we can do because of other individuals. Of course there is two sides to this argument, those that say that the fuel would not be accessible or refined for us unless these companies existed. However, there comes a point when companies no longer seek to improve the lives of the majority, but instead to control it. I believe we have crossed that point.

My second point concerns the ideology of the UK government. The price of petrol for consumers would be around 50 pence if it was not for taxes. One contributor to a BBC forum stated that the high prices are "exactly what the government wants, as it means they are simply pumping more money into their account". Regardless of this mans displeasure, we do have a deficit and it must be reduced. Goods which have negative externalities, such as motor vehicles, should be discouraged. And this is why I personally do not have a problem with the tax rate the government has set because of the negative externalities which motor vehicles have. On the surface, the tax seems very high on fuel and is having a detrimental affect on the lives of millions. Fuel for our cars is dictating our lives. Put in a much better way, cars are dictating our lives. This is our main problem, and I hope that this is the motif behind the governments high taxes, not the revenue-seeking politicians that BBC contributors despise.

Until electric cars are a realistic product, I do not see myself driving a car. I do not need to at this moment in time and I do not think I ever will with the development of public transport and the opportunity to car-share. I hope others share my view.