In: Economics
At coasts around New England, Federal government has set production quotas for the fishermen and the fishermen do not like it. What do you think may be a justification for these quotas and what would happen in its absence?
New England comprises of Maine, Vermont, New Hampshire, Massachusetts and Rhode Island. It is the thickly populated area in the North-Eastern states of United States Country. The history of this place is dates back to 1620. It is marked as the beginning era in which English people settled in Plymouth colony of New England region. Since many colonies from English origin settled here. The Fishing occupation is considered as the main occupation in the New England area. Individual Fishing Quotas (IFC) are allocated to each fisher man involved in each catch area. The IFC permits each fisherman to catch or produce fishes in considerable quantity.
National Marine Fisheries Service (NFMS) is the federal agency of Federal Government which protects the interest of the life security of the fisherman community and also their occupation. Though many incentive plans of NFMS were assisted many fishing sources including New England coastal region. But poor management of the NFMS had witnessed many failures of implementing plan to execute in the New England coastal region. Though NFMS provides funds to the New England Management Council, but the ineffective production plan, heavy cost of production and low income receipts had misguided the New England Fisherman community in the wrong way.
According to my opinion, My justification on incentive provided by Federal Government will be in centered around negative effects which hinders the growth of the New England Coastal region. Let us discuss those negative effects with briefly with the help of following factors. 1) Extent of use of resources in Sea level. - The NFMS has framed some restrictions to exhaust the sea resources around New England coastal area. It badly effects the quantity of catching different type of fishes in certain period. 2) Poor Capital facilities:- In order to restore the fishes in the store houses, too much cash flow are tapped here. But the remaining cash inflow used to catch the fishes was very low. NFMS has the position of re-financing for harvesting in the fish development. The re-financing again needs huge budget. Again Fisherman community in the New England meets the situation of insufficient funds. 3) Primitive tools are still used in New England area for fishing occupation which ultimately yields less return of fishing quantity. Overall above factors proves the inefficiency system of Federal Government of producing quotas to the fisherman of New England area which are not liked by them.