America vs. The World

           

https://en.wikipedia.org/wiki/Australia

             The economic principle I’m exploring is that institutions are the “rules of the game” that influences choices.

             My research question to help me study the economic principle is how does the regulation of firearms in the Federal and State governments affect firearm trade?

             The article published in The Conversation titled “ How U.S. gun control compares to the rest of the world” demonstrates this economic principle because it shows how the firearm markets of other nations are more open or closed compared to America because of their laws.

             First, we will look at the heavily regulated and closed firearm market in Australia. Australia is a country where no private citizen can own a firearm. This is because in 1996 after a mass shooting in Port Authur, Australia passed regulation that called for the required seizure of weapons. This seizure came in the form of a buyback program. The market before the program was still a regulated closed market but after the program the firearm market in Australia became very small and closed to private citizens. It is important to note however that almost two thirds of Australians have illegally kept their weapons which has the potential to create and illegal firearm market for those people who want to remain armed. 

            Second, there are markets in European countries like Italy, Finland, and France that are more regulated than the U.S. markets because of their laws. These firearm markets of these countries are affected because of the laws made regarding the ability to buy a firearm. In all three of the countries listed to obtain a firearm you must have a “good” reason for owning a firearm and you must pass heavily psychological screening. This creates a slower and more regulated market in these countries because obtaining a firearm is harder and weapons aren’t as freely available like in America.

             Third, we will look how the free market of America affects countries with more closed markets. Since the American gun market is open and not heavily regulated, U.S. manufacturers try to step in and make a profit to where they can. For example in countries with heavy regulation American firearm companies will sell attachments and other firearm goods to consumers in these countries. This is because it is also easier to go through an American company rather than a company that is in a regulated market.

             In my next blog post I will research: What markets are created by policy from parties like the Republican or the Democratic Party.