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Economic Logic

Economics can be defined as the communal discipline that involves evaluating the manufacture, giving out and utilization of merchandise and services. The use of some forms of ideas in policy making and administration explains the meaning of the word logic. The livelihood of rice farmers in Glen-Colusa has changed inevitably because of the actions of the west lands water district by minimizing the amount of water.

The land owners receive compensation although the effects of obstruction of water are still felt. The cycle that runs from the farmer to the consumer of the rice is under obstruction since the production of rice goes down and the demand for the rice remains the same if not rising. The farmer depends on water to have an abundant harvest so, since it is under minimization; the farmer is lead to plant a slightly lower amount of rice.

The fact that the land owners are undergoing compensation does not make everything better because the other parties are forgotten and left to suffer alone. Plus the compensation is not on a 'long term' basis. Basing this conclusion on the fact that water is a natural resource, and the water company is not producing the water, the other groups should be compensated.

When one investigates on all the changes that take place as a result of minimization of water by the water company, one will find out that the market price is contrasting with the natural price. The natural price is determined mostly by natural factors like availability of sufficient water, fertilizers and farming chemicals. In the case of market prices, prices are determined by external factors, which are mainly the cause of escalation of food prices (economic logic). Some of the issues include; the cost of transportation from the farms to the selling place, the type of preservation used for the product- some of the products degrade extremely fast so, they have to be refrigerated leading to  a higher price.

Other products do not degrade fast, so they do not need any preservation. Therefore, at the end of the day, the end product is determined by a dozen of factors and the group that is majorly affected is the consumer group since they have no other choice. When the Westland water district buys water from Glenn-Colusa, they minimize chances of more people benefiting from the rice irrigation scheme due to the deceleration of production. The parties that are most affected are the secondary groups that is the buyer and seller. They are justified to be compensation.

Another reason supporting the compensation of the secondary parties is that the act of minimizing water by the Westland’s Water Board has changed their way of life. Life has become more expensive (morishima). According to economics when a good becomes scarce the price escalates so as to be able to recover and perform better the next time. This does not necessarily mean that since the prices have escalated the salaries of the citizen will be increased, so life becomes unbearable each and every day for the people.

In conclusion I believe that, the wetlands water district should give back to the community. The reason behind that decision is that the water company does not have a high production cost since water is a natural resource so they should compensate the remaining parties.

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