In: Social Issues

Submitted By ss2222
Words 4214
Pages 17
“The question we ask today is not whether our government is too big or too small, but whether it works, whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified.” – Barack Obama

The world is in economic crisis bringing upheaval throughout the planet. Experts disagree about the best ways to manage paths to stability and prosperity for global societies. The severity of the crisis pressures policy makers toward pragmatism, whatever their ideologies. The big question for every leader involves the effectiveness of their intended actions. Will those actions work? The issues before world leaders range from short-term economic recovery necessitated by the failure of capital markets, to long term survival of humans on the planet earth challenged by climate change and ecological systems, natural resources, and population growth. Potential consequences for world societies and civilizations are enormous.
World leaders need confidence that they can predict outcomes when they implement their plans. They cannot manage their policies without prediction. W. Edwards Deming tells us that management is prediction (Rienzo, 1993). How does the human mind find confidence in predictions? From where does confidence come?
Confidence comes from knowing the systems we are attempting to manage. The purest expressions of knowledge that we have as human beings are scientific laws. Scientific laws allow scientists to predict outcomes with certainty when they engineer physical structures, mechanical technologies, or chemical/biological reactions. Can political and business leaders use processes similar to the ones that produce scientific laws to address the most pressing issues of world societies? The perspective of physicist Nancy Cartwright offers some insight.
Truth is Relative Wherever it is Found
Scientific laws come as…...

Similar Documents

Econonmy of the Philippines 2012

...After floods, mudslides and powerful winds, victims of typhoon “Pablo” must now endure longer term suffering from the loss of their livelihood sources. The super typhoon devastated at least 14,000 hectares of farms planted mostly to bananas, the major export crop of Compostela Valley. Export of thousands of tons of Cavendish bananas to the United States has been suspended because of the crop loss. The destruction comes on the heels of a ban imposed by China earlier this year on Philippine banana exports, ostensibly due to insect infestation. Authorities said nearly 60,000 workers are affected by the destruction of the plantations. A loan facility of P2.1 billion has been made available to banana growers by the Land Bank of the Philippines, but it will still take 10 months to rehabilitate the banana industry in the typhoon-hit areas. That’s the most optimistic estimate and will need nature’s cooperation – not a reassuring thought in this age of climate change. The government will have to do more to assist those thousands of plantation workers and their families who will have no source of livelihood for nearly a year. The typhoon also reportedly destroyed farms planted to coconut, corn and rice, although the palay harvest for the fourth quarter was mostly over when Pablo struck. Those images of children begging in the streets give an indication of the economic disaster now faced by people in the typhoon-affected areas. If relief aid cannot be sustained and new sources of......

Words: 1733 - Pages: 7

Eco365 increase money supply, the interest rates are set low. This in turn encourages banks to make more loans. If there is a decrease in money supply the interest rates are set high. This encourages banks to raise interest rates where loans are more expensive and temptation to borrow is a decrease. According to "Frb: Monetary Policy" (n.d.), “Monetary policy refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals.” Monetary policy aims to avoid inflation by decreasing money supply, and raising interest rates. The goal is to put the brakes on rapidly growing economy. Monetary policy controls the money supply in the econonmy by setting reserve requirements that banks must hold, buying and selling government securities in open market operations, and by adjust the discount rate, which affects the price of reserves banks borrow from the Fed through the discount window ("Amosweb," n.d.). According to " Track The Money" (n.d.), “The $787 billion economic stimulus package was approved by Congress in February, 2009. The package was designed to quickly jumpstart economic growth, and save between 900,000-2.3 million jobs. The package allocated funds as follows: * $288 billion in tax cuts. * $224 billion in extended unemployment benefits, education and health care. * $275 billion for job creation using federal contracts, grants and loans.”......

Words: 624 - Pages: 3

Female Econonmy As a market, women represent a bigger opportunity than China and India combined. So why are companies doing such a poor job of serving them? The Female Economy by Michael J. Silverstein and Kate Sayre Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea 2 The Female Economy Reprint R0909D The Female Economy The Idea in Brief • Women represent the largest market opportunity in the world. • But despite women’s dominant buying power, many companies continue to market mostly to men and fail to explore how they might meet women’s needs. • Companies that can offer tailored products and services—going beyond “make it pink”—will be positioned to win when the economy begins to recover. COPYRIGHT © 2009 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. page 1 As a market, women represent a bigger opportunity than China and India combined. So why are companies doing such a poor job of serving them? The Female Economy by Michael J. Silverstein and Kate Sayre COPYRIGHT © 2009 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. Women now drive the world economy. Globally, they control about $20 trillion in annual consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market......

Words: 4158 - Pages: 17


...Globalization What is globalization on our economy? Economic globalization is the increasing economic integration and interdependence of national, regional and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital. Our econonmy has an increasing rate of which it is using overseas worker to replace local jobs for American workers. The economy is changing fast. What has opened up the market to the globalization idea? Companies realize that they can find goods, services, technologies and capital at a much better value. As a comparison, an engineer in the United States, with a bachelor’s degree with a salary of $60,000 a year can be replaced by an engineer in India, with a master’s degree in engineering and happily accept a salary of $15,000 a year to do the same job. Sense the use of the internet and fibrotic phone service lines came out in the early 1990’s, the ability of communicating with the rest of the world became much more available. The first web browser that became popular with globalization was Netscape. In the early 1990’s, the big (.com) companies layed fibrotic cables across the world. These cables are still used today and have plenty of room for advancement and capacity. With the new technology using the internet, companies and users can exchange currency across the world securely with the company PayPal. I use PayPal regularly with my eBay store. I have sold many items across the......

Words: 603 - Pages: 3

A Study on Progressive Income Tax a Case Study of Us & Brazil and poor. Thereby it explains why there was high inequality rate in Brazil while the economy is growing greatly. The government used a state led approach by providing government support programs which proved to be very effective. However, the government needs to address the indirect taxes at its various states to solve the inequality problem. For instance the government can have a unified indirect tax between different regions in the country and reduce it to encourage equality, that way business will increase in the formal sector which reduces the informal sector helping government to collect more tax revenue and in the same time it helps reduce the burden on the poor or low income groups who can share the benefits of brazil’s growing econonmy. As a result inequality in brazil would be tackled and reduced greatly. In order to achieve the best results out of progressive taxation, it has to be combined with extensive targeted government social and welfare programs. Moreover government should enhance tax collection techniques and enforce strict penalties in order to improve compliance. Most importantly consistent monitoring of the public is needed to keep a watchful eye on efficient and purposeful expenditure of government revenue. As for the US, it should simplify its tax system to decrease administrative costs associated with the tax system. Furthermore, tax complexity makes efficient economic decision-making a hard thing for families and business which might increase......

Words: 4032 - Pages: 17


...actually refer to a capital asset whose yield is intellectual rights.” (Wikipedia, 2008). Knowledge, regardless of its source, can therefore be considered ‘intellectual capital’ because of its economically ‘intangible’ nature. Understanding that knowledge is valuable is one thing, but quantifying its value is a challenge unto itself. The Value of Organizational Knowledge How does an organization assign value to its knowledge and quantify the knowledge assets in its possession? Doing so requires identifying a method or methods by which intellectual assets can be valuated. Daniel Andriessen attempted to identify a methodology for measuring the intangible, identifying knowledge as the first of seven “characteristics” of the “intangible econonmy” (Andriessen, 4). According to Andriessen, “a value reflects the concept an individual or group has regarding what is desired. It serves as a criterion to determine a choice from existing alternatives” (Andriessen, 11). Andriessen identifies four methods for determining value. First, the financial valuation method, which assigns monetary value to an object. Second, the value measurement method, which involves using a non-monetary criterion and translating it into an observable phenomenon. Third, the value assessment method, which is dependent upon the personal judgement of an evaluator. And fourth, “if the framework does not include a criterion for value, but does involve a metrical scale that relates to an observable phenomenon”......

Words: 2663 - Pages: 11

Australia's Declining Productivity

...Department of Infrastructure and Regional Development, Bureau of Infrastructure, Transport and Regional Economics. 2014. Information Sheet 55. Accessed 3 June 2015. Eslake Saul. 2011. ‘Productivity: The Lost Decade’, in H Gerard and J Kearns (eds), The Australian Economy in the 2000s, Proceedings of a Conference, Reserve Bank of Australia, Sydney, pp 223–254 Krugman, P, The Age of Diminished Expectations: US Economic Policy in the 1980s, MIT Press, Cambridge, 1992, p. 9. Nourzad, Farokh. 1998. ‘Infrastructure capital and private sector productivity: A dynamic analysis’. Quarterly Journal of Business and Economics. 37(1):13-25 Perlich, Harry. 2014. “Australia’s ‘Two-Speed Econonmy’”. The Journal of Australian Political Economy. 72:106-126. Accessed 2 June 2015. Productivity Commission, Australian Government. 2006. Potential Benefits of the National Reform Agenda. p. 3. Productivity Commission, Australian Government. 2009. Australia’s Productivity Performance – Productivity Commission Submission. Accessed 31 May 2015. Satya, Paul. 2003. ‘Effects of Public Infrastructure on Cost Structure and Productivity in the Private Sector’. Economic Record. 79(247):446-461. Standing Committee on Economics, House of Representatives Committees. 2010. Inquiry into raising the level of productivity growth in the Australian......

Words: 2376 - Pages: 10


...environment affect the company? Chapter 6 Mini Case (pages 263 -265) A. The concept of return provides investors with a convenient way to express the financial performance of an investment. Dollar return = $1,100 - $1,000 = $100 Rate of return = ($100/$1,000) = .10 = 10% B. 1. The T-bill’s return is independent because it is seen as being essentially risk-free and must be redeemed at par regardless of the state of economy. Based on the information provided, the T-bill has a risk-free return since the 8% return will be seen in all possible states of the economy. 2. Alta Industries is positively correlated with the economy and Repo Men’s is negatively correlated. Alta Industries will move up and down with the econonmy. C. Expected rate of returnAlta Industries = 0.1(-22%) + 0.2(-2%) + 0.4(20%) + 0.2(35%) + 0.1(50%) = .174 = 17.4% Expected rate of returnRepo Men = 0.1(-28%) + 0.2(14.7%) + 0.4(0%) + 0.2(-10%) + 0.1(-20%) = .017 = 1.7% Expected rate of returnAmerican Foam = 0.1(10%) + 0.2(-10%) + 0.4(7%) + 0.2(45%) + 0.1(-30.0%) = .138 = 13.8% Expected rate of returnMarket Portfolio = 0.1(-13%) + 0.2(1%) + 0.4(15%) + 0.2(29%) + 0.1(-43.0%) = .15 = 15% D. 3. σAlta = √[(8- 8)2(0.1) + (8 - 8)2(0.2) + (8 - 8)2(0.4) + (8 - 8)2(0.2) + (8 - 8)2(0.1)] = 0% σAlta = √[(-22 - 17.4)2(0.1) + (-2.0 - 17.4)2(0.2) + (20.0 - 17.4)2(0.4) + (35.0 - 17.4)2(0.2) + (50.0 - 17.4)2(0.1)] = 20.0% σRepo Men = √[(28 – 1.7)2(0.1) + (14.7 –......

Words: 2562 - Pages: 11

Issues and Challenges Faced by Islamic Banks

...Islamic banking is interest free. (Nasir Mehmood) There is only difference that Islamic banking is interest free. (Sheraz Hameed) Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia’h) principles and guided by Islamic economics. A banking system is one of the most important aspects of any developed and flourishing economy and financial system, it’s based on interest. (Imran Rasheed) In real sense I personally didn’t observe any difference. (Khalid Kamran) Conventional banking is normal routine banking while Islamic banking is doing transaction in accordance with Islamic laws. (Muhammad Salman) 2. Effects of prohibition of intrest on society and econonmy. It spreads injustice in society. (Sheraz Hameed) Interest is prohibited in Islam because it spreads injustice in society. (Nasir Mehmood) Interest ruins the society. (Imran Rasheed) Interest kills the poor and it increases poverty to an extreme extent. (Muhammad Salman) Interest is prohibited in Islam because it effects the flow cycle of money in the society. And as a result poor gets poorer. (Khalid Kamran) 3. Work of scholars of Islamic banking. They are trying their best. (Sheraz Hameed) I think they are working hard for this. (Khalid Kamran) They are trying their best. (Ali Imran) Yes (Ali Sattar) I certainly think that that they are because being a muslim no one has the......

Words: 12868 - Pages: 52

Business Law

...manufacturing operations. Recently the shift to lower-wage global markets, called offshore outsourcing is causing a major issue in the US" (p. 81). The result of offshore outsourcing has been primarily negative. Negative because of the loss of jobs and the inability to guarantee the quality of products and services from other countries such as China and India. A bigger concern is looming. Offshore outsourcing is considered a first level type of outsourcing. A more ominous, second level of outsourcing is that of increased skilled technology and highly educated product and service providers. These better educated sources of workers are primed to benefit from this country and other countries where outsourcing has a negative effect on the local econonmy. Manufacturing has been affected with the first level of outsourcing but other essential segments of our country, economy and community are a stake for the second wave of outsourcing. Segments like intellectual property, health care services, and engineering and architureal services. Do we really want that type and level of service to be outsourced? I think not. The way to slow this wave of outsourcing and safe guard our place in the global stage is to make education a priority. We need to create the mathematicians, architures, doctors, engineers and the like of the future. If we do not some other country will. Many signs have been presented to us in recent years like the devaluation of our credit standing, the recession of 2008......

Words: 343 - Pages: 2