Moral analysis and Economic Problems
Moral analysis and Economic Problems
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Moral refers to conforming to the standards of behavior and character that is based on the principles of right and wrong. Issues arise in diverse contexts making the perception and identification to be a little bit difficult. What should be kept in mind is that it is almost impossible to be completely objective due to the fact that different complexes of value and interest often compete for primacy. The final result is always problems due to economic meltdown. A few individuals keep on accumulating wealth while the poor majorities become extremely poor. It therefore becomes apparent to devise an orderly system which is open-ended to help in engaging the dilemmas. The system should be able to adapt the various weaknesses
Moral analysis of the economic theory results into an ethical dilemma which is a conflict within an organization between financial performances for instance revenue, profits and costs and social performance. Some of the decisions and actions taken are likely to hamper the rights of others. This is a moral problem. You may not wasn’t to hurt one’s rights, but is likely to be beneficial to you as an individual or even a group of people. Economic players should be concerned with the profit they get from the business. But this is always overlooked hence failing to give norms some consideration. Conditionally, scarce resources are to be adequately utilized by the firm and the goods and services distributed to the customers’ satisfaction. However it is important to know that the possibility of benefiting a person without harming some others is very minimal.
The World Bank and Pollution of Export
The World Bank is a bank that is internationally supported. It provides both financial and technical forms of assistance to developing countries to boost development projects such as roads and schools. The main aim is to reduce the level of poverty.
Multinational corporations look for new sources of capital, raw materials and labor where environmental regulations are lax or even non-existent.
The current focus of the World Bank is to achieve the Millennium Development Goals. These are goals that call for the elimination of poverty as well as the implementation of sustainable development projects. There are two constituent parts of the World Bank: International Bank for Reconstruction and Development (IBRD) which is entitled to lend to middle-income countries. The interest rate that is required reflects a very small mark up compared to its own borrowings from the capital markets. The other constituent is the International Development Association (IDA). This provides low or no interest loans together with grants to countries with low income which have little or no access to credit markets in the international level (Carlos 41).
The question is increasingly and continuously being asked during the time when there is a sharp increase in the level of foreign direct investment (FDI). The fact that both the source and the country receiving accept that they both have something to gain may be the reason. Some observers are however scared that the economic gains are likely to be generated at the expense of the quality of the environment among other important social welfare elements. There is a worry that the countries receiving the cash inflow will compete for the available benefits by lowering the standards of their environment. They may also reduce the required efforts to enforce the current existing standards. The firms are likely to relocate to the “pollution haves” to enable them gain the cost advantage. In this kind of scenario, developing countries are always regarded as the most likely sites of pollution haves. This is due to the fact that they are likely to be the countries that are highly willing to sell off the quality of their environment for economic gains.
Government Bail out
It is always easy to argue that bailing out the auto industry, which has thousands of the factory workers compared to many other financial sectors with all the bonuses that they gain. However, there is a difference: The bank is involved in the business borrowing as well as lending him money. Currently the banks face two problems namely the crisis of confidence: a number of people who lent them money are not always sure whether they get the money back. This is due to the fact that no bank whatsoever, could be in position to pay back its creditors at once. Banks only operate through borrowing for a short term and lending in long term. If this could be the only problem, then the government deposit insurance together with the new loan guarantees could easily take care of it. This would then render the banks free and very fine (Gar 98).
The other problem is potential solvency crisis: There is a possibility that the assets of the banks have depreciated in value to a level where they are worse less than the liabilities. The most probable answer is recapitalization which involves giving banks a lot more capital in exchange for the ownership of shares. If banks are given enough capital to enable them offset the losses on their assets, and then there is no reason for believing that they can still go forward and make good profitable loans. The situation may be worsened due to the low levels of the cost of money. There would be no need of doing anything intelligent or even risky with the money. This is just to compensate for the past mistakes. If there is any reason to believe that a given bank will not able to have a reasonable business in future, then there is no need of capitalizing it.
A depressed economy refers to an economy whereby the economic activities of all types are operating at a lower level than is normal or expected. A depressed economy is characterized with a prolonged recession. There is no clear distinction between recession and depression though what has often been said is that a decline in GDP beyond 10% leads to a depression. There are various attributes which can take place simultaneously. This can include a decline in the measures of all the economic activities like employment, investment and the corporate earnings. Depressions are the final results of falling demands and are likely to be associated with the falling prices or rising prizes or the combination of both.
9/11 Terrorist Attacks
September 11 attacks, which are usually referred to as 9/11, were a series of coordinated suicide bombing attack by the al-Qaeda upon the United States of America on 11th of September 11, 2001. Nineteen Islamist terrorists who are affiliated with the al-Qaeda managed to hijack four commercial passenger jet airliners. These hijackers intentionally managed to crash two airliners into the twin towers of the World’s Trade Center in the city of New York, resulting into the killing of everyone on board and many more others who were working within the building. The two buildings collapsed within two hours, causing the detraction of at least two nearby buildings as well as damaging others. In addition to that, the hijackers crashed a third airliner into the Pentagon. The crashing of the fourth plane took place near Shanksyille which is in the rural Somerset County in Pennsylvania. This happed after some of its passengers and the flight crew attempted to take control of the plane upon which the hijackers managed to redirect towards Washington D.C. There are no survivors from the flights. In total, 2974 people, excluding the 19 hijackers died. 24 others are missing and are presumed dead. Majority of the causalities were civilians and these included the nationals of over 90 different countries. There is also a death of one individual from lung disease who was ruled by a medical practitioner to be as a result of exposure to dust that came from the collapse of World Trade Center (Valerie 21).
Compensation for the Victims
RAND Corporation released a study that showed that the victims of the terrorist attacks who were killed or seriously injured together with individuals and businesses impacted by the strikes, have already received at least $38.1 billion in compensation. Federal government and insurance companies provide more than 90% of the payments.
62% of the total compensation has gone to New York Businesses and this reflects broad ranging impacts of the attacks to the economy both within and around World Trade Center. Emergency responders together with their families are among the individuals who were seriously injured and they suffered similar economic losses. First responders have already received nearly $1.1 million more per person on average than the civilians who had similar economic losses.
Compensation which was paid to the victims of the World Trade Center attacks, including the pentagon and that in Pennsylvania was unprecedented to its scope and in various programs which were used to settle payments. The system raised many questions concerning equity and fairness which have no obvious answers. Addressing of the questions at present is likely to help the nation to be always prepared any future attack (Kenneth 106).
Continuation of war
Since the September 11 terrorist attacks that took place in the United States, six years have passed. Immediately after the attacks, Bush administration commenced a retaliatory war against the attackers, most particularly Afghanistan, as a way of exercising the right of self-defense. There was the expansion and strengthening in attacks on Afghanistan by the use of North Atlantic Treaty Organization (NATO). This was their decision to fully exercise the collective right to self-defense. Contrary to the expectation, the situation is growing worse and then Taliban forces are trying to make a comeback. The Japanese Communist Party had initially pointed out in the letters addressed to the world’s government leaders concerning the 9/11 attacks. The so called war on retaliation has led to a vicious cycle of more terrorist attacks. In addition to that, there has been also military retaliation which has pushed the situation into a quagmire.
JPC has given an argument that in eradicating terrorism, there is the need to seek a concrete resolution which is based on justice and fair reason other than of military retaliation. This argument is reasonable basing on the development in Afghanistan in the last six years. Though the allied forces which consist of U.S. and some of the NATO countries have been attacking the strongholds of terrorists one by one, they have not been able to capture the leader of the International terrorist network Al-Qaeda who is Osama bin Laden and Mohamed Omar who is the Taliban supreme leader. In fact, the U.S. and other foreign forces are being attacked by the Taliban insurgents throughout Afghanistan. The U.S. Secretary General released a repot on Afghanistan in March indicating that the anti-government forces had increasingly made remarkable strength and training. One surest way to handle terrorism is to make an international effort that is full-fledged to eliminate poverty which is the hotbed of terrorism.
Carlos, Mayermi. Pollution of Export. Brazil: Universidade Federal do Rio de
Janeiro, Instituto de Economia, 2000
Valerie, Bent. The Days of Change: the 9/11 terror attacks. New York: Pantheon
Book Publishers, 2003.
Kenneth, Fallon. What Is Life Worth?. The Inside Story of the 9/11 Fund and Its Effort
to Compensate the Victims of September 11th: Perseus Books Group Publishers,
Gar, Alloys. Rebuilding America. A Blueprint for the New Economy: Pantheon Book