Part 1

Power: Getting Started

Economist should know that lack of off shore drilling and failure to import foreign oil would impact lives in a negative way. They should foresee the status of the economy and understand that lack of import will make the country to become poor since the economic theory asserts that for a country to become rich there should be both imports and exports of goods (United States, 2011). Economics should foresee the impact on country’s trade deficit. Failure to import oil will cause import and export imbalance. In addition, there is a high global oil production and a country must have sustainable alternatives. The country will not be able to meet the customer demand and it will not maintain its competitive edge in the oil market. Economies should consider the impact of no offshore drilling to county developmental and in specific the area of job creation (United States, 2011). There will no economic activity going on in the country and there will be no development due to lack of mineral resources and discoveries. Citizens will live a poor life due to lack of country development in terms of infrastructure development and environmental monitoring.   

Part 2: Digging Deeper

When chaos arises, economy collapses, problems arise in price control and there is less supply of essential goods. There is no food in stores and there is no cash to purchase the available food.  Consumers lack essential goods due to shortages and high prices (Baker & Cormier, 2014).  There is no supply chain and transportation of essential commodities. The little food which is the previous stock is sold at a high price and middle class consumers are unable to afford. There is also a gas shortage and the available gas is sold at high prices and people create huge lines so that they can afford oil. During this disaster period, there is a higher demand of essential goods.  Business owners find the opportunity to create high profits than normal (Baker & Cormier, 2014). The high demand results to an increase of prices to an extent that consumer of low class cannot afford. The supply is low but the price of goods is high and the act is considered to be immoral and it becomes a problematic to the life of consumers.

 

Both looting and price gouging happens during the chaos periods but there is different based on how the act is done. Price gouging is an ethical act of increasing the prices of goods and services due to chaos in the economy. They do this for the purpose of gaining higher profit as there is no other alternative for consumers (Baker & Cormier, 2014). On the hand, looting is the illegal act of stealing goods during the period of chaos. Looting  in specific is related with  taking goods of value such as luxury and precious metals by force  and police are able to provide control over the theft due to lack of communication infrastructure (Baker & Cormier, 2014).

 

 

 

 

 

 

 

 

 

Reference

Baker, L. R., & Cormier, L. A. (2014). Disasters and vulnerable populations: Evidence-based practice for

the helping professions.

 

United States. (2011). Deep water: The Gulf oil disaster and the future of offshore drilling : report to the

President. Washington, D.C.: National Commission on the BP Deepwater Horizon Oil Spill and

Offshore Drilling.