Finding Balance In Marke's The Lorax

Finding balance is difficult in nearly every endeavor. From tightrope walking to building study routines, all activities require some sort of equilibrium, a point where two conflicting forces or ideas become equal. Of course, this must relate to economics in some fashion: the art of economics endeavors to reach the ideal economic conditions. In most cases, this is analytically simple (finding the point where marginal revenue equals marginal cost), but when dealing with policy these decisions become more subjective especially when wagering freedom for nearly anything. Everyone has an opinion even Dr. Seuss. In The Lorax, Dr. Seuss explores the eternal battle between technological progress and environmental protection which relate to economic freedoms and safety in a national market.

He caused irreparable damage to the environment, and therefore, his business. If the Onceler planted as many trees as cut down or at least a fraction of the trees that he cut down, he would continue to be in business. This isn’t uncommon: businesses often exploit natural resources to make sure that competitors can’t exploit it. This is a slightly altered example of game theory. In this case, the Nash equilibrium is at a point unfavorable to society and less favorable to the business.
To create an outcome that benefits the society in addition to the firm, governments put regulations into place. The externalities of exploiting a resources that produces air are monstrous. In this case, the exchange can cost society lives. Government intervention works to fill the gap of these externalities, to reduce economic freedom in certain circumstances and regulate through appropriate methods like taxation and cap-and-trade programs. In The Lorax, the government should have intervened with regulations that would make the Onceler plant just as many trees as he cut down. This would minimize the deadweight