Capitalism and Subsidies

"If a private enterprise is a failure, it closes down - unless it can get a government subsidy to keep it going; if a government enterprise fails, it is expanded. I challenge you to find exceptions."

- Milton Friedman

I was looking for a long article regarding democracy vs. Capitalism but instead I found this quote from Milton Friedman. I think Friedman poses a wonderful thought regarding capitalism in The United States. In our class, we have discussed subsidies for landowners and how those subsidies affect their lives, as well as the lives of people who purchase the goods cultivated on the farmers' land. Subsidies can assist families who come from generations of farming and really don't want to do anything different based on tradition. However, subsidies even help those who are new to agriculture and wish to cultivate goods on their land. Friedman poses an interesting way of thinking. If we as consumers go out and attempt to start a business and that business fails, most likely that business will be closed down. However, if our government invests money into a business and it fails, the government is more likely to increase capital going into that business to counter undercapitalization. A good example of this would be the ties between government officials and big-business in The U.S. Funding can come from private accounts but most of the time the funds come from a pool of different economic resources. I ask the question, is this fair for the small entrepeneur or venture capitalist?

Link: http://www.grassrootinstitute.org/GrassInReview/GrassInReview03-12-07.shtml

Capitalism will crush the retirement options of Generation Y

In this weeks issue of "The Economist" magazine, there is an article that deals with the marketing of products to the generation of people currently in their 20s affectionately dubbed, "Generation Y." The main marketing focus is on college students and there is a disturbing afterthought in the last paragraph of the article titled "The boomers' babies."

How to make financial products appealing to the savers of the future

"Facebook, iPods and blogs: anyone with children at university should recognise the accoutrements. Young adults may baffle their parents, but they are a growing marketing opportunity for financial firms. As baby-boomers retire, people now in their 20s will become increasingly importnat to an industry looking for a new source of customers (The Economist, August 11, 2007 p. 68)."

"It may seem early, but the retirement-planning industry cannot afford to overlook them either. Today's young will have to fend for themselves more than earlier generations did, given the demise of defined-benefit pension plans. For now, people in their 20s account for about 12% of the participants in 401(k) plans, with about 2% of total assets. The less money their againg parents put away, the greater the industry's incentive to woo them (The Economist, August 11, 2007 p.68)."

We have all been warned countless times these past four or five years. For the current 20 year olds in the United States, there is no security in our retirements. Social Security is projected to run out and the idea of privatized retirment funds will become a reality. The problem is that companies are using this generation to market their products and we are ALL eating them up. In turn, we are eating ourselves financially. If we do not buckle down for ourselves and begin to save for retirement, we may be the ones depending on foreign aid in order to survive. We are a generation facing economic doom and we will all be saddled with debt to boot. Do not be fooled by the mythology, we MUST learn to think less like consumers, and more like savers. If we do not, we may find ourselves in a world of hurt. I want to know what people think about this.

Military Draft: The worst decision that could possibly be made for our military.

Bush War Czar Says Draft Worth a Look

By RICHARD LARDNER,
AP
Posted: 2007-08-11 05:04:48
Filed Under: Nation News

"WASHINGTON (Aug. 11) - Frequent tours for U.S. forces in Iraq and Afghanistan have stressed the all-volunteer force and made it worth considering a return to a military draft, President Bush 's new war adviser said Friday."

As a veteran of the war on terror, I tend to take a hardline on certain policies related to the United States military. I make certain that I stay flexible and open-minded and I always listen respectfully to the opinions of others because they DO matter to me. However, in the case of the possibility of a military draft, I feel strongly that it will prove costly to the United States. When I enlisted in the Army at nineteen years of age, I understood what I had volunteered to do. There was no doubt in my mind that there would always loom the possibilty of having to deploy somehwere and engage in combat. I was COMMITTED to this fact, and I was ready to devote myself to a greater cause, all politics aside. I knew what it would take for me to be successful in the Army, and I worked very hard to adhere to the standards set before me. I felt a tremendous obligation to fulfill my duties as a soldier, not just for the United States, but for the countless number of soldiers who had come before me. My desire was shared by MANY soldiers that I had shared the ranks with, and I can say that looking back, there was never a doubt that the men and women who stood beside me were the finest that this country could ask for, and that was mostly because they WANTED to be there.

We all know very well that the rigors of war can be trying. There are times during war when misery sets in, and beyond anything else in this world, the feeling of longing can lacerate even the most determined of soldiers. It takes a strong individual to cope with such a feeling. The loss, the longing, the sleepless nights, and the days that never seem to end...all of these feelings are inevitably felt by soldiers. My concern regarding a military draft has ALWAYS remained constant for this very reason. Those who desire to serve deal with miserable conditions and work through them, always upholding the standards and fulfilling their duties. However, if our military is comprised of individulas who do not actively CHOOSE to serve the United States, there will be immeasurable difficulties for command even at the lowest levels.

The US Army alone has already changed its standards for entry. What is happening to our military should not be overlooked, and this war is causing a rift between tradition, pride and necessity. The desperation of the US government is obvious and in the end, relaxed standards, and a draft will whither away the strength of our military.

It is my great hope that a draft will never be implimented in the United States. For it will destroy a once dignified and respected military.

LINK: http://news.aol.com/story/_a/bush-war-czar-says-draft-worth-a-look/20070811000809990001?ncid=NWS00010000000001

More on Ladakh

The Ladakh Farm Project

Now in it’s fourth year, The Ladakh Farm Project, http://www.isec.org.uk/, encourages volunteers from around the world to spend a month or longer working on a traditional farm during the summer harvest and thus gain an understanding of a culture whose needs are finely tuned to the local ecosystem. Participants witness firsthand the detrimental effects of their own culture and globalization upon traditional cultures. The Farm Project is run through the Women’s Alliance. For more information contact: ISEC, P.O. Box 9475, Berkeley, CA 94709; 510-548-4915.

This is cool. Seems like it would be an interesting type of "internship" or something.

Along with this is the link to an article that I found that describes more intimately the ways of life in ladakh.

LINK: http://www.transitionsabroad.com/publications/magazine/0009/ladakh_nepal.shtml

Asian Tiger

China and birth control (In relation to economic development)

Chinese agency bans crude birth control slogans-

APPublished: August 05, 2007, 23:05

"Beijing: China's top family planning agency has cracked down on crude and insensitive slogans used by rural authorities to enforce the country's strict population limits, state media said yesterday.
Slogans such as "Raise fewer babies but more piggies," and "One more baby means one more tomb," have been forbidden and a list of 190 acceptable slogans issued by the National Population and Family Planning Commission, the official Xinhua News Agency said.
Such slogans are often found painted on roadside buildings in rural areas.
China's 28-year-old family planning policy limits most urban couples to just one child and allows some families in the countryside to have a second child if their first is a girl.

Critics say it has led to forced abortions, sterilisations and a dangerously imbalanced sex ratio due to a traditional preference for male heirs, which has prompted countless families to abort female foetuses in the hope of getting boys.
The Chinese government contends that the one-child policy has helped prevent at least 300 million births - about the size of the US population - and aided China's recent, rapid economic development (Gulfnews.com, 2007)."

In China, there has always been a dire need for birth control as nearly one third of the worlds population lives in China and throughout nearby East-Asia. The slogans that have been banned would have created an absolute outrage if they had been used in the United States. The reactions would have gone much farther than any of us can imagine. This article interested me in particular because it shows the differences between Chinese culture and US culture. In terms of development, it is very interesting to see that nearly 300 million births have been prevented due to the one child birth policy, and has also aided in economic development for China.

LINK: http://archive.gulfnews.com/articles/07/08/06/10144488.html

Russia U.S. ties strong

"Washington-Relations between the United States and Russia are strong and complex, but also are marked by U.S. concerns about some aspects of Russia's political and economic transition, says Secretary of State Condoleezza Rice.
Russia has “a great culture, it’s a critically important power in international politics, but it is a country that is still in the midst of a really major transition,” (USINFO.STATE.GOV, 2007)

"But at the same time, the United States has concerns about the state of Russia’s relations with some of its neighbors, its lack of democracy and the growing state control of the Russian economy, she said." (USINFO.STATE.GOV, 2007)

As a student, I have mostly given my attention to the Middle-East and the politics there. Lately, Russia has become a point of interest for me and I am fascinated by the changes that have occured, and are occuring in Russia. It is great to see that ties between the United States and Russia are strengthening and I would like to see the government there continue to push for Democracy and a free-market economy. My question is: What will stop Russia from being able to accomplish these things?


LINK: http://usinfo.state.gov/xarchives/display.html?p=washfile-english&y=2007&m=April&x=20070404141051idybeekcm0.1698877

China Pulls Poverty Card on US

"Beijing: China yesterday deflected US pressure for a faster rise in the yuan and bolder economic reforms by telling visiting Treasury Secretary Henry Paulson that it is still poor and poses no threat to anyone.
Paulson's visit coincides with a drive by US lawmakers, frustrated by America's record trade deficit with China, to press Beijing upon pain of sanctions to allow open markets to set the yuan's value.
Vice-Premier Wu Yi said at the start of her talks with Paulson that she was happy he had first visited poor Qinghai province in western China and had seen for himself the big difference with rich cities such as Beijing and Shanghai.
"In making this contrast, you can understand - who could China threaten? China still has areas as developmentally backward as Qinghai," Wu told Paulson while reporters were in the room.
"China still has 23 million people living in poverty. China's very goal in its development is so that its 1.3 billion people can eat their fill, dress warmly and live well. Who could we threaten? We don't have the ability. China does not and will never threaten anyone (Gulfnews.com, August 3, 2007)."

China, the Asian Tiger that it has become has been a focus of the US for quite some time. Pressure from the United States has a lot to do with Chinas' oil consumption and the high bids for oil reserves to be shipped there. Much more than this is the ever-present threat of poverty in China. Does China pose a threat to the united States? At this point, only in terms of economics.

Link: http://archive.gulfnews.com/articles/07/08/01/10143269.html

Syriana

Just a note on a film that I feel everyone should watch, Syriana. This film examines aspects of geopolitics in relation to the U.S. government and its connections with big business. The film examines aspects of other cultures, many of which can be considered developing countries. One of the countries examined in the film is Saudi Arabia (although this is never mentioned, it IS eluded to several times). Other cultures examined include that of Pakistan, Lebanon, Switzerland, and Iran. The film also delves into U.S. socio-political aspects involving oil and the laws that inhibit mergers of large corporations in order to increase profit (as well as the GDP of that business and its capital). I HIGHLY suggest that if you have not seen Syriana, rent it.

Poverty Fuels Extremism- Focus: Pakistan

"Pakistan reveals multiple realities and the temptation to let optimism prevail is great. But, in essence, Pakistan has a high level of dysfunction and unpredictability.
A former Pakistani finance minister and World Bank economist recently told a roundtable on Pakistan in Washington DC that in most countries 6-8 per cent economic growth should translate into reduction in poverty by 10 per cent. He said that trickle down does not seem to be working in Pakistan as 6-8 per cent growth rates have not reduced poverty at the rate of the global average.
Pakistan's growth is not creating jobs and is not helping alleviate poverty at a rapid pace. He estimated that 65 million Pakistanis live in absolute poverty while another 65 million live in poverty. Only 30 million Pakistanis are well-to-do.
The well-to-do often ignore the rage and anger brewing among the poor, who will be particularly vulnerable to extremist ideologies if political inclusion does not replace the current system of oligarchic rule (GULFNEWS.COM, August 2, 2007)."

I wonder if poverty is the true reason for extremist ideologies?

Money Translates to Modernization

As an American, I am bound to my debts, my bank accounts, my student loans, and the interest rates that will cause me to work more than I need or want to in the future. But DAMMIT I have to have a car, a house, a college education, a savings for emergencies, medical insurance for my family and I, money to feed us, money saved for retirement, money to send my kids to college, money for EVERYTHING. So, basically I need MONEY.

In developing countries, this is certainly the case...but in a much different context.
In the United States, we have come to believe through society that we must have a certain way of life in order to fit the model of what society expects of us. We are conditioned to fit the standards of capitalism and financial power. Part of what we see in this society is those who invest money. Now, there are several different reasons for investing, and I have covered a few in my initial introduction, i.e., money for retirement, and money to send my kids to college. My argument behind all of this is simply this: Is it necessary for developing countries to open financial markets for investment in order to move forward with modernization?

I found an article related to this question at USINFO.STATE.GOV that shows the Bush administration pressing the issue.

"Bush administration officials say that more prosperous developing countries have failed so far to submit adequate offers in World Trade Organization (WTO) negotiations for opening their markets to financial services. Of the 148 WTO members, 69 have submitted initial offers, but "the quality of offers in emerging markets of greatest interest is still poor," said Christine Bliss, acting assistant U.S. trade representative for services and investment (USINFO.STATE.GOV, 2005)."

After examining this particular portion of the article, I wanted to know if these 69 developing countries' offers were "poor" in terms of U.S. market standards or standards in relation to the world as a whole? In the United States, we are made to believe that the more wealth we accumulate, the more security we will have. Money can pry us out of just about ANY situation in this country. Money is what matters the most here and don't let ANYONE tell you differently (but never admit this or people may find you shallow). There is such a strange attitude toward money in the United States and I feel STRONGLY that develpoing countries should be given more latitude when it comes to "catching up" to western ways of living. In many other countries, money takes a backseat to other important facets of life such as say.....HUMAN LIFE.

"We need greater participation, particularly among emerging markets, such as Brazil, India, China, Malaysia, Thailand, Indonesia, South Africa and the Philippines," Bliss said.
They remain stalled a month before a December 13-18 ministerial meeting in Hong Kong, even after the United States made an effort to revive them by proposing substantial reductions in domestic agricultural support payments and agricultural tariffs. The standoff over agriculture in part has prevented substantial progress in the negotiations over cutting industrial tariffs and opening markets in services. Still, the U.S. position remains that the Doha round negotiations should conclude by the end of 2006. According to Bliss, the United States wants from the WTO financial services negotiations increased market access for U.S. suppliers coupled with transparency in the development and application of laws and regulations for banking, securities, asset management, pension funds and financial advisory services (USINFO.STATE.GOV, 2005)."

"More specifically, she said, the United States asks its WTO trading partners to submit offers on:
• Commercial presence, meaning the right to establish new and acquire existing companies;
• Cross-border supply and consumption rights, which are especially important for marine, aviation, transport insurance, reinsurance and brokerage services; and
• Removal of discriminatory limitations such as monopolies, quotas and economic needs tests.
She said the United States is working with the European Union (EU), Canada, Japan and Switzerland -- other financial services exporters -- to promote offers from other countries.
Developing countries have their own interests in the services negotiations, of course, Bliss said. Some, especially India, are pressing hard on what the WTO calls "Mode 4" -- temporary access for their workers to perform jobs in other countries.
So far, she said, the United States has submitted no offer on Mode 4, mindful of resistance in the U.S. Congress.
Also testifying was Clay Lowery, assistant secretary of Treasury for international affairs. He cited World Bank estimates that by 2015 income gains from services liberalization could provide 4.5 times the gains from goods liberalization alone.
He argued that opening financial markets also would promote financial stability among developing countries (USINFO.STATE.GOV, 2005)."

I suppose it is necessary for a developing country to invest, but as long as those investments primarily serve the BEST interests of that investing country and its citizens. The United States, is certainly unique, but NOT the most dominant or exemplary. Setting standards should be shaped uniquely for each country in order to serve all facets of that society from agriculture to healthcare.

Link: http://usinfo.state.gov/xarchives/display.html?p=washfile-english&y=2005&m=november&x=20051115163139ebyessedo0.9043085

A COUNTRY VICTORIOUS

A Glimmer of Positivity for Iraq

Sunday, July 29, 2007

The Iraq soccer team defeated Saudi Arabia 1-0 winning the Asia Cup in Jakarta, Indonesia. This piece interested me because "In 2003, an iron maiden was discovered in an abandoned soccer field in Iraq by invading American forces, and former athletes stated that it had been used to punish athletes who were not performing up to standard. The device was likely used under the direction of Uday Hussein when he was in charge of the Iraqi Olympic Committee (Wikipedia, 2007)."

In recent modern history, Iraq has not been without suppression. Especially under the brutal regime of former dictator Saddam Hussein. This victory signifies a great change for the Iraqi people.

In the 71st minute of the Asia Cup match between Iraq and Saudi Arabia, captain Younis Mahmoud headed a goal into the net giving Iraq a 1-0 lead over the Saudis. After the match, captain Mahmoud called for the United States to withdraw its troops from Iraq. Mahmoud said "I want America to go out, today, tomorrow, or the day after tomorrow, but out. I wish the American people didn't invade Iraq and, hopefully, it will be over soon (SI.com, 2007)."

"Jubilation over the team known as the "Lions of the Two Rivers" gave Iraqis a rare respite from the daily violence. The victorious run sent men of all ages cheering and dancing in Baghdad. Celebratory gunfire resounded across the city and revelers poured into the streets in defiance of orders from authorities while mosques broadcast calls for the shooting to stop. Security forces enforced a vehicle ban in an effort to prevent a repeat of car bombings that killed dozens celebrating Iraq's progress to the finals (SI.com, 2007)."

"The players have made us proud, not the greedy politicians," said Sabah Shaiyal, a 43-year-old police officer in Baghdad. "Once again, our national team has shown that there is only one, united Iraq (SI.com, 2007)."

This victory for Iraq shows unity and spirit for a country who has been ravaged by war.

Link: http://sportsillustrated.cnn.com/2007/soccer/07/29/iraq.saudiarabia.ap/index.html

Covert Operations in Somalia

Suffice it to say that when I think of the term "3rd World" the first place that comes to mind is Somalia. For nearlt twenty years now, the instabilities in Somalia have garnered a huge amount of attention. Throughout the war-torn country of Somalia, there are miltitias, warring factions, and off-shore pirates who plunder passing ships. This primitive nation operates without any government and even to this day, many are dying there do to lack of nutrition and legitimate opportunities.

In 1993, the United States sent a large military force to Somalia in order to oversee that foreign aid reached residents of Somalia that had been intercepted by militia men in order to feed the war-lord's armies. The most renowned war-lord at that time was Mohamad Farrah Aidid, of which the United States government was frothing at the mouth to get thier hands on. Aidid was caught however, not without the loss of over twenty U.S. servicemembers in what is now referred to as "The battle of Mogadishu."

Today, it is rumored that the United States government has been doing covert operations in the horn of Africa for many years since the tragedies in Mogadishu in 1993. I came accross an article from The Washington Post that had reported on U.S. covert operations in the horn of Africa. The article is quoted as reporting "US analysts of Africa policy and officials of Somalia’s interim government say that the Bush administration is secretly supporting secular Somali warlords, whose groups are battling Islamic groups for control of Mogadishu (The Washington post)."

If this is the case, we may have another Iran-Contra type situation in our hands. At this point in our human history, it is not surprising to find another accusation of a literal "ghost war" taking place behind the shroud of U.S. liberal media coverage and spoon-fed propaganda. What many do not understand is that the United States government has operated this way for decades. It is indeed controversial, and many question the sanctity of secret operations involving U.S. interests.

Somalia is a sore-spot for the world, and not many understand the involvement both past and present by the United States. It is an important place to establish a stronghold on radicalsim because without control of some sort, the breeding ground for new types of problems will cultivate matters of great concern. Aside from helping the people living in the horn of Africa, it is also imperative that someone take steps in helping to achieve balance to a dying nation and breath life into hundreds of thousands of struggling residents. In conclusion, the question is this: Are covert operations to establish control evil or necessary?

Link: http://www.globalresearch.ca/index.php?context=viewArticle&code=CHI20060527&articleId=2524

Reality Can Both Stifle and Stimulate

"The world breaks everyone, and afterward many are strong at the broken places."
-Hemingway

Sudan (Highlighted in Red)

My Focus Country: Sudan

Nestled beneath Egypt and neighbored by Ethiopia, Sudan is a North African country whose history is etched in stone, and painted with blood. In my International Studies class, we have each been assigned a focus country of which we are to analyze, and construct in depth reports. I have little knowledge regarding Sudan, and it intrigues me to think that I may come to know many wonderful bits about Sudan and its culture, cuisine, traditions, and battles for sustainability. Topics ranging from the civil war there in the 1970's up and through to Darfur which has been a massive issue in recent years. In this world, when millions of people are perishing on a biblical scale in one concentrated location, it draws the attention of many nations. Much has been done to help facilitate the ever-dangerous and tragic situations in Sudan. In September of 2004, then Secretary of State Colin Powell called the Darfur conflict "genocide" stating that the conflict is one of the "worst humanitarian crises of the 21st century (Wikipedia, 2007)."

With regard to my International Studies class, we have been given a list of characteristics which can place a nation into the category of being "3rd World." One of the deciding factors in determining this is the inability to establish consistent political habits of which allow a country to build a foundation for its own sustainability. Sudan has militias who have been accused of crimes against humanity and have also been noted for creating disruptions regarding any recent political processes. So far, 2.5 million residents of Sudan have been displaced, and it is estimated that anywhere between 200,000 and 400,000 Sudanese have died or been killed since the dawn of Darfur (Wikipedia, 2007)."

It is my great hope that I will be able to delve into the blueprints of Sudan's history and construction allowing for a new vision of how to help solve the galactic issues that Sudan faces.

In my intital research process regarding Sudan, I came across an article that stunned me. In the opening paragraph of this article written by staff writers of AFROL news, they quoted the United States as saying that they "do not intend to stand by while violence and atrocities continue in Darfur, do not doubt our determination. A military intervention is being considered (Afrol News, 25 July 2007)."

Considering the current political tensions in our world, especially those between the United States and nations of the Middle-East, I feel that such talk is overzealous and uneccessary. Any military action taken in Sudan will inevitably end in tragedy just as we witnessed in Somalia during the 1993 incursion of U.S. forces to remove threats interfering with foreign aid. This region of the world is incredibly unstable and much like Iraq and Afghanistan, any military force faces an enemy capable of violating any and all guidelines established by the Geneva conventions. Lives will be lost without legitimate rhyme or reason (not to say that ANY life lost ever truly is). War and/or conflict is something that this world needs LESS of. Especially the united States and another Middle-Eastern nation. As history often repeats itself, we may see a new transcription of this generations desire for humanitarian efforts to change the world. Unfortunately, we may end up seeing these transcriptions written in blood.

Link: http://www.afrol.com/articles/13383