Pierce’s Prized Rants & Raves

September 21, 2006

Questions about Comparative Poverty

Filed under: FSEM100J, Graded Portfollio — spierce @ 8:16 am

After re-reading the article I linked the other day about the Mountain Man in America and the Surgeon in Congo, I realized that it had raised quite a few questions. I’ve tried to answer some of the questions (which are in bold) but perhaps everyone else could give them a wack too? I’d definatly recomend that everyone read the article atleast.

The troubles of today, including worldwide political volatility, lack of tolerance of other people’s ideas and cultures, environmental preservation and economic sectionalism are all the effects of an underlying issue. One issue fires the uncertainty of our world. That is, we live in a polarized world similar to that of the cold war. Now instead of communism vs. capitalism, we have the haves vs. the have nots. While acknowledgment of religious and cultural differences is important, the problems of today’s world largely stem from the schism that exists between those nations and even those peoples within a given nation who are fortunate and those who are not. As the rich have gotten richer, or as the powerful have gained more authority, the poor and weak have suffered. We have come a long way since the days of Khrushchev and Kennedy. That polarization is gone, but a new schism controls and dictates our politics and economics. I may seem a hypocrite, speaking as a constituent of the wealthiest nation in the world. However, even America faces problems common in the developing third world nations. The simple fact is that even in America millions are without medical care, hundreds of thousands are homeless, and many do not have an adequate amount to eat. In fact, America is an excellent model of the schism facing the world. We have parts of our population with more affluence than they know what to do with, and others who barely survive, if they do at all. The question arises however, if the poor of America are better off, then the rich of the rest of the world. The impoverished in America, know what they are missing, and there is indeed a physiological toll. However, some of the “elites” in other nations, have much less then poor Americans. Take for example Dr. Kabamaba, who makes just enough for his family to survive, eat meat twice a month, and have electricity a couple of times a week. While even poor Americans enjoy such “luxuries” as air-conditioning, and a good steak, in many countries even the rich cannot afford such things.

All of this clearly raises the question, who is more happy?

While the obvious answer would seem to be Mr. Banks, as he does have electricity, food, and indeed a Wal-Mart near by, material goods aren’t always a determinate of happiness. Mr. Banks is at the lower end of American society, and while he has more then Dr. Kabamba, in comparison to the rest of the society of his nation, he has nothing. Mr. Banks is the character in all bad jokes about white trash; he is the type of person who sits in his trailer all day, wishing to have to same things, the same life as the fake soap opera stars he watches. He never actually does something to achieve them, he just dreams. This leaves an unbalanced mental state. It always feels like something is missing, as if there is a void. On the flip side, Dr. Kabamba may have a void of meat, but he works to provide for his family, and for the most part does. His family is on the upper end of Congolese society, which in comparison to fellow Congolese citizens must appear miraculous. Mentally Mr. Banks is compared to Bill Gates, Dr. Kabamba, to starving kids in Red Cross refuge camps. Dr. Kabamba must be happier. He doesn’t have the same void, felt by many like Mr. Banks.

So who should the American Government help?

This is a loaded question. Politically speaking, the answer is simple. The American government has a responsibility to it’s constituents before the citizens of the world. Any simple social contract theorist would argue, the government has a responsibility to provide for Mr. Banks. Practically speaking however, who deserves the help more? The man who sits around all day in a trailer, or the one who works to save lives, while providing all he can for his family. Obviously Dr. Kabamba is more “deserving”. Perhaps the answer isn’t this simple. To understand, we must consider our next question, what does the article suggest about America’s wealth versus Africa’s wealth? While it may seem that the wealth structures of the two continents are much different, this is false. Money and wealth in both places is concentrated in the pockets of the upper elites, which make up a small percentage of the society. The difference is in the distribution of this wealth. In our truly progressive society, in America the wealth trickles down. However in Africa, the wealth never leaves the elite. As the war lords, and corrupt officials get richer and richer, they allow just enough of their resources to trickle down, for the minimal survival of their people. Because the do provide some food, and care, the people don’t revolt as it’s the elite are their only means of survival. This economic based control of political structures is common in underdeveloped nations across the globe. Perhaps the solution of who to help can be found in this. Maybe actually decreasing American economic support of corrupt régimes would help those like Dr. Kabamba, then directly supporting him. If the warlords and corrupt governments loose their legitimacy, then the poverty issue can be easierly addressed.

“Few Americans say that the poor have only themselves to blame,” but “many believe it.” ???

There is one flaw with the previous statement. The word only. I truly believe that some fault lies within the poor for their condition, as is the case with Mr. Banks, who hasn’t worked in twenty-five years. However there are also some conditions which are insurmountable, despite ones’ best efforts. Some people are poor, because through their laziness they choose to be. However, others are poor due to the cyclical nature of poverty, and the conditions and environments they are provided with.

Considering poverty, are free markets the best way to organize economic activity?

Practically speaking, in the mind of an economist, without at doubt free markets are the best way to organize an economy. However, one must consider the human costs of such a policy. I believe it to be an admirable goal to decrease poverty and aid in the development of impoverished areas. Perhaps sometimes this requires government regulation and action, to limit markets. While not the most economically beneficial always, I think it is important to help those who cannot always help themselves. I am not for aiding those who can, but don’t provide for themselves, they can enjoy they chosen quality of life. However, as we can actually see in Mr. Banks case, even the impoverished in America can live better then many elsewhere, if the markets are restricted by the government in favor of the poor in some instances.

So how does this all add up?

The truth is, I don’t really know. I understand that there is a growing gap between rich and poor in our nation, and in the world. It appears that even the poor here are better off then the rich elsewhere, and that is concerning. But what is the solution? Economic activity is stifled with too much government interference, and what is our role on a global scheme. What is too far? I think part of the solution is found in the last quote, “were Americans not so incurable discontented with their lot, their great country would not be half as dynamic as it is.” If we don’t always question, and if we stand contently, we loose who we are. Our nature of consistently trying to progress and be better, is how it became that our poor people are better off then other countries rich. If we continue to reach for the moon, at the very worst, we can land among the stars, and it is this kind of attitude that will help us answer the questions of poverty.

September 18, 2006

Questions about the paper due this week!

Filed under: FSEM100J — spierce @ 3:43 pm

Professor,

Is the paper due this week supposed to be more individual thought and
argument, or more of a research based paper?

Stephen Pierce
—————————————————–
Stephen:
I’m not sure what you’re asking. Do you mean should it reflect your thoughts or those of the experts? If so, then the former. I want to know what questions you think are important to study and why.
You should post this question on your blog so everyone can see the answer.

- S.G.

——————————————————
Steven A. Greenlaw
Professor of Economics
University of Mary Washington
Fredericksburg, VA 22401
(540) 654-1483
——————————————————

September 15, 2006

Cuba to join OPEC?

Filed under: FSEM100J — spierce @ 3:16 pm

Huge Chavez — Cuba to Join OPEC!

What does this mean for communism in Cuba?  Is this another example of Globalization changing the politics of a nation?

September 14, 2006

Intresting Post with Bhagwati

Filed under: FSEM100J — spierce @ 12:00 pm

The Blog I read for class has an excellent Question and Answer session with Jagdish Bhagwati who is not only a prominent economist but also the author of one of the books, In Defense of Globalization, for Professor Geenlaw’s class.  In the book Bhagwati notes that “this process [of globalization] has a human face, but we need to make that face more agreeable.”  The first question he answered on the blog I follow, defines globalization using economics, and asserts that those who dismiss globalization aren’t considering the whole economic picture.  “For clarity, we need to remember that economic globalization, defined as increased integration of the national into the international economy, has at least five distinct aspects: trade, direct foreign investment (or what is sometimes simply called “multinationals”), short-term capita flows (which were at the heart of the Asian financial crisis in the 1990’s), international flows of humanity, and technology transfer (which includes the problem of patents and generics which has central importance for the poor countries).”  That is people are only opponents to globalization are only considering one part of the picture, and forgetting the rest.  Everyone should check out the rest of the Q&A, it was quite interesting.

Poverty on the Decline?

Filed under: FSEM100J, Graded Portfollio — spierce @ 11:35 am

I was busy perusing Greg Mankiw’s (who wrote my high school Economics book, and who teaches ECON at Harvard) blog, when I came across this post. In it Mankiw finds that according to the Quarterly Journal of Economics poverty rates are falling. “Poverty rates … in 2000 were between one-third and one-half of what they were in 1970… There were between 250 and 500 million fewer poor in 2000 than in 1970. We estimate eight indexes of income inequality implied by our world distribution of income. All of them show reductions in global inequality during the 1980s and 1990s.”

While the numbers are convincing, I think Mr. Mankiw misses the whole point about poverty. While the way poverty was defined in 1970 may have decreased in numbers, the gap between rich and poor has increased ten fold. The number of poor globally may be decreasing, but that doesn’t mean that the quality of life for the poor has increased. In fact it’s actually decreasing. One thing I find truely disaggreable, is the Bush tax cut program. I know that a lot of thought by the Bush administation is that the trickle down theory works. What this argues is that by cutting taxes for the Rich, they will invest in such ways that the poor will benefit. I think all of this was proven wrong with the decrase in conditions for the impoverished durring the Regan supply side economics binge. I don’t want to come across as a liberal whinner who doesn’t want the “big bad business” class to pay to much in taxes. I just think that in a progressive society such as ours, I think that the tax sturcture should be set up in such a manner as that those who can afford more, give more. In short society and the living conidtions of the lowest memebers of society will increase because of societies focus. Like I said this shouldn’t be via give aways, but rather through investment in education.

All of this got me thinking about an article I stumbled upon last year. The noted publication The Economist published the article, which is called The Mountain Man and the Surgeon. Basically it compares a mountain man from North America to a Surgeon from Africa. The article comes to find that despite the Surgeon’s hard work, he lives a comparatively worse life then the lazy impoverished mountain man from America. So my contention is this, perhaps globalization and the “leveling” of the playing field, will make life worse for the mountain man, providing incentive for him to be more productive, while giving the Surgeon who works very hard a chance at more success.

When I finished the article, I realized something. To be poor and taken care of by society here in America can’t possibly make a man “happy”. However a person who is as productive as possible, despite their place in the world, can be happy. Don’t get me wrong, I am not against helping the poor. As a matter of fact, I think society has a duty to helping the poor. But not by giveaways. I think society needs to help along with globalization in “leveling” the playing field when it comes to education and innovation. What I mean by this is that education is the single greatest investment a person can make in their future. As such society’s single greatest investment is also in education, and education not just for the rich Ivy League bound snots, but also for the so called “mountain men”.

September 13, 2006

My Globalization Picture

Filed under: FSEM100J, Graded Portfollio — spierce @ 2:01 pm

Globalzation and Sports

To me the simple fact that American culture has not only brought it’s sports to other countries, but also the fact that we now play sports common to other cultures in American shows how much the World has become Globalized. American sports like football, baseball, and basketball are now played around the world. In Japan, Eastern Europe, Canada, and even China. Similar sports such as Rugby, Cricket, and Soccer have become big in America. Globalization is about the spread of ideas and practices, in the case of my picture, globalization is about the spead of Sports, and the styles of how to play these sports!

September 12, 2006

Test of Picture Posting…

Filed under: Uncategorized — spierce @ 11:37 am

Senior Picture

Originally uploaded by spdpierce.

September 7, 2006

Jobs Dissapearing?

Filed under: FSEM100J — spierce @ 11:56 am

POOF…and they’re gone! We are all fimilar with politicans and the arguement about job outsourcing.  You know, when American jobs go overseas.  Now, it seems that jobs aren’t just going overseas, but completly dissapearing on a global scale!

It looks as if Intel has decided to cut more than 10 percent of its worldwide workforce by the middle of next year.  These cuts aren’t our typical job losses to other countries, or the so called “job outsourcing”.  The jobs aren’t being outsourced, they are being eliminated.  So how does this affect the global economy?  Well first of all is is interesting not just because it may mean that some companies from wealthy countries may be pulling back their worldwide expansion. It is also helping to synchronize economic cycles across borders.   What this means is that now we are in a “global period” the upswings, and even the downswings as in this case, affect not just one nation, but the whole world.  Now, the entire world is losing the Intel Jobs, whereas before, one county would loose the jobs to another.  It all just goes to show, that as the economics of the world become more interconnected and “equal” the job looses will be global, not just shifting.  What does everyone think?

Culture?

Filed under: FSEM100J — spierce @ 11:47 am

Culture is the set of spiritual, material, intellectual and emotional features of society or a social group, which encompasses art, literature, lifestyles, ways of living together, value systems, traditions, and beliefs.

Culture comes about because of mans ability to communicate and classify diffences and similarities.

Comments?

September 6, 2006

The Beautiful Game Goes Global

Filed under: FSEM100J, Graded Portfollio — spierce @ 2:21 pm

My favorite sports are football and soccer. I play and enjoy both. While football is as American as apple pie, it is slowly leaking into the Global Community, with leagues being established in Canada and Europe, and with preseason games being played in Japan, Mexico, and go figure, next year China. Soccer, or “football” any place other then America, has spread in quite the opposite way. The world loves soccer, America however is just learning. One thing is definitely true; Soccer is a perfect example of how the Global Community is all interrelated.

So says The London Independent, sounding a theme common among global commentators who see the World Cup tournament which occurred this summer, as an indication of globalization. The World Cup which occurs only every 4 years, has lead to ceasefires of Civil Wars, lead governments and industries to shut down and in general lead to an increased global fervor. A brilliant piece in the Washington Post, cites Germany’s Spiegel OnlineEvery World Cup is a celebration of a happier globalization than the one we all know. The nations of the world come together for a contest between peers, with no single party calling the shots. Football can be our role model for a just world order.” The Post also notes that Even U.N. Secretary General Kofi Annan has joined the game, saying the United Nations has “football envy” because soccer “is one of the few phenomena as universal as the UN. You could say it’s more universal. The World Cup illustrates the benefits of cross-pollination between peoples and countries,” Annan writes. “More and more national teams now welcome coaches from other countries, who bring new ways of thinking and playing. The same goes for the players who represent clubs away from home. They inject fresh qualities into their new team and are able to contribute more to their home side when they return. In the process, they often become heroes in their adopted countries – helping to open hearts and minds.”

Is there also a negative side? Soccer has become THE marketing strategy around the Globe. Having famous soccer players in ads has lead to increased profits in everything from underwear and perfume, to automobiles. Whereas most balls are stitched in Pakistan in workshops owned by subcontractors for Nike and Adidas, “The average salaries in Sialkot are about $1,000 a year, about twice the Pakistani average. Thus the poor Pakistani kid’s work enables the rich Chelsea fan in London to buy an ‘affordable’ ball (for about $130) and enables Nike or Adidas to deploy massive global campaigns featuring Ronaldinho, Thierry Henry, Michael Ballack and a millionaire cast of football players.” If globalization can reshape the world’s economies, it can certainly do the same for football. The Washington Post article argues that perhaps “globalization arguably threatens as well as enhances the beautiful game.” In the unfinished globalization of football, says the Independent, lies a big unanswered question: Will football continue to be “an expression of local and national identity” or become “just another soulless consumer product?” I certainly hope it’s not the later. Soccer definitely has global ramifications. Players play in countries far from their homelands, bringing about changes in culture and spreading ideas. We all know that economics and technology is connecting and “flattening” the world, but who knew, that Soccer was having the same effect?

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