The Tobin Tax A Solution to the Problems of Globalization?
1. Introduction
Recently, there is a fierce academic and political discussion about chances and risks of globalization. Especially globalization of financial markets not only enhances the allocation of capital and support trade in goods and services through lower transaction costs and higher liquidity. Moreover, international asset diversification and hedging opportunities lower risks, and free international financial markets make it easier to reach foreign capital, especially for emerging economies. Therefore, international financial markets raise efficiency and profits due to international division of labour. Economic growth in emerging countries is not only enhanced by the availability of foreign capital but also by developing local financial centres that pave the way to international business. On the other hand, low transaction costs encourage speculation, which is said to destabilize markets, especially speculation on foreign exchange rates. High fluctuations of asset prices and exchange rates are a source of uncertainty for the real sector and cause misallocation. Hedging those risks is costly and in some cases not or only partly possible. Another crucial point against free financial markets is the loss of independence of economic policy. Under free convertibility of the currency and free capital markets, autonomous economic policy is only possible with free floating exchange rates but not with fixed ones. Therefore, if a country's objective is currency stability, it will have to give up the independence of its economic policy. Thus, governments lose their sovereignty over financial markets. Globalization of financial markets has been raising global foreign exchange transactions far faster than the growth of official reserves. In the 1980s, daily turnover was about 600 billion US-Dollar and exceeded 1,5 trillion US-Dollar before establishing the Euro. Today, daily transactions in the foreign exchange market are about 1.2 trillion US-Dollar (BIS (2001)) . Speculative runs can now rule out the financial resources that central banks can mobilize to counter such runs. The question arises whether it is not better to regulate or to restrict international financial markets. In December 1999, the German Parliament set up a commission with the task to examine chances and risks of globalization. It calls for regulations of international financial markets, since these markets bear some systematic risks due to huge volume of transactions and high capital mobility. The suggestion is to implement a transactions tax on all foreign exchange transactions the so-called Tobin tax.
Money is the root of all things evil. When a person puts money before their beliefs and values a lot of things can go wrong. Delia and Missie May are the two women Hurston wanted you to see what money do to two different type if people, one self-made and one depended on money given. Delia was the woman that had to work hard for everything she wanted and have. She is not a person who let money define her, whereas you have, Missie May, a housewife and her husband gives her everything she wanted and needed. It’s Funny how Hurston depicted two different kinds of bad marriages. In “The Gilded Six-Bits” the wife cheats on the husband, whereas in “sweat” the husband cheats on the wife. In both stories, Hurston tested a Woman’s strength and weakness by showing your love, regret and hate in two different viewpoints.
The essay “Ill-gotten Gains” first appeared in a book called ‘Health Care Ethics’ and was written by Tom Regan who is a renowned philosopher, author and animal rights advocate. The essay appeared again in Tom Regan’s best known book called ‘The Case for Animal Rights’ which states Regan’s beliefs regarding animal rights and provides a sound argument as to why animals should not be exploited for our own gain. Tom Regan believes all animal use that benefits humans is morally unacceptable including for food, entertainment, labour, experiments and research. “Ill-gotten Gains” argues that to be on the right moral path we need to view all individuals with inherent value as a ‘subject of a life’. Regan argues that any practice in which a ‘subject of a life’ is used as a resource is immoral, not because of emotion, but because of reason. Any individual with a sense of a future, awareness and purpose is considered to be a ‘subject of a life’ and has equal inherent value. Regan also takes time to explore the argument that humans have souls while animals do not.
Corrupt systems: Throughout the entirety of this novel, corrupt systems have played a huge role. In fact, these systems are the sole cause of poverty, and the increasing wage gap. This topic is presented and developed on nearly every page of Nickel and Dimed as Ehrenreich wanted to emphasize where the issue of poverty stems from. Corrupt corporations just happens to be one of those issues. These systems are represented in numerous ways throughout the book.
Slaves and slave trade has been an important part of history for a very long time. In the years of the British thirteen colonies in North America, slaves and slave trade was a very important part of its development. It even carried on to almost 200 years of the United States history. The slave trade of the thirteen colonies was an important part of the colonies as well as Europe and Africa. In order to supply the thirteen colonies efficiently through trade, Europe developed the method of triangular trade. It is referred to as triangular trade because it consists of trade with Africa, the thirteen colonies, and England. These three areas are commonly called the trades “three legs.”
The Earned Income Tax Credit (EITC) is a program that was set in place, in 1975, to improve “the economic status of low-income persons […] granting nearly $40 billion to low-income households” (Borjas, 59). As is clear from the name of the program, The EITC is a program that provides tax credits to those who qualify, the EITC could even produce a negative tax liability for some households, in particular the type I will discuss, which would provide substantial income increases for these households. In order to qualify for the EITC, the recipients must be active members of the labor force, in that they must have labor income, and for the group that I will be focusing on, single mothers, total household income must be below $33,241 for single parents with one child and $37,783 for single parents with two or more children. According to Economist Hillary Hoynes, in a presentation given to the Chicago Federal Reserve Board in 2007, the maximum available credit for a single parent with 1 child was $2,853, with the maximum available credit for single parents with two or more children being $4,716. (Hoynes, 2007) The EITC has provided assistance to countless American families while still providing them with an incentive to remain in the labor force, unlike many other welfare programs. I will focus on a certain subset of people receiving the Earned Income Tax Credit: single-mothers.
changed from the nineteenth century until now, we can trace the steps of education to study the
Literature is an excellent way to convey messages to readers. Short stories are a form of literature that contain elements similar to those in novels, plays, and other works of literature. Although everyone is capable of writing a short story, not everyone is able to produce a good short story. It are the components within a story that sets some authors apart from others. Even so, there is always room for improvement as every short story has its strengths and weaknesses. In the short story “The Great Minu” written by Beth Wilson, the theme, use of dramatic irony, and imagery were nicely incorporated, whereas the conflict and character development could use some improvement. Another short story written nicely was “A Rupee Earned” by I.F. Bulatkin, which had nicely
The American dream is based on one thing, happiness, but what is happiness? Happiness is usually characterized as, something that makes you feel, fulfillment, joy, and pleasure. However I think happiness is different for everyone, and ever changing depending on where you are in life, and my life is a perfect example of this. A years ago if you asked me what happiness was, I would have told you, I was experiencing pure happiness. I had a job that paid well, a nice car, my first street bike, and an amazing girlfriend of three years and was a pretty good Christian. One day she left, and my happiness fell apart, I went into depression, and stopped caring about life and God. I turned to drugs like weed to make me happy instead of working on my self. I still struggle with depression some days, but I try to focus on my new goals in life. Graduating college with my Bachelors in Nursing, becoming closer to God once again, getting back in shape, meeting a girl in college, and getting married. For Augustine Pure happiness is only possible by living in God. In Augustine’s mind God is the greatest happiness man can obtain. He says “You stir us so that praising you may bring us joy, because you have made us and drawn us to yourself, and our heart is unquiet until it rests in you (Augustine, 1,1).” I need to start applying Augustine’s teachings to my personal happiness. If I can focus more of myself on God and trust him, everything will work itself out in the end. Unfortunately sometimes we sin in order to achieve false happiness.
The Federal Reserve is the main hub of all the nation’s money while also doing the 5 main tasks we need in order for effective operation of the country’s economic stability. The 1st task is to manage the unemployment rate , create standard prices for goods & seeing where to invest long term interest rates to promote economic growth. Secondly is the minimization of systematic risk due to active monitoring as well as foreign engagement with imports and exports ; this is important because if we invest resources in creating ties with the wrong country , we could end up in economic or even political deficit. The 3rd is to promote & insure the safety of individualized financial institutions & how to properly mentor the effects of their actions on
Eichengreen, Barry. Globalizing Capital: A History of the International Monetary System. Princeton, NJ: Princeton University Press, 1996.
The theme of this essay outlines two things. One, the key elements of Bretton woods system and second, the characterisation of Bretton woods system by Ruggie as ‘embedded liberalism’, and how far he succeeds in it. The Bretton woods system is widely referred to the international monetary regime, which prevailed from the end of the World War 2 until the early 1970s. After the end of the World War 2, the need of international monetary framework to boost trade and economic; growth and stability, was important. Taking its name from the site of the 1944 conference, attended by all forty-four allied nations; the Bretton Woods system consisted of four key elements. First, to make a system in which each member nation has to fix or peg his currency exchange rate against the gold or U.S. dollar, as the key currency. Secondly, the free exchange of currencies between countries at the established and fixed exchange rate; plus or minus a one-percent margin. Thirdly, to create an institutional forum, so-called International Monetary Fund (IMF), for the international co-operation on money matters: to set up, stabilize, and watch over exchange rates. Fourth, to remove all the existing exchange controls limiting (protectionism) policies by the members, on the use of its currency for international trade. In practice the first scheme, as well as its later development and final demise, were directly dependent on the preferences and policies of its most powerful member, the United States. According to John Gerard Ruggie, 1982, this Bretton woods system of monetary co-operation represented the type of liberalism which characterise “domestic social economic stability along with a liberal trading order.” He referred this system as ‘embed...
In November of 2004, the United States ran a fifty-four billion dollar trade deficit, translating to over 600 billion for the entire year. This deficit is a result of the disparity between the amount of goods that the US imports and the amount it exports. To equalize this deficit in its current account, the American government sells assets from its capital account, often to foreign investors. This phenomenon is seen as a serious threat to the success and continued growth of the nation’s economy, tied in with popular concerns that the United States is losing its competitive and dominant edge in global economics. The traditional economic theory employed to solve this problem calls for a return to mercantile protectionism, through use of tariffs and subsidies to drive up the price of imports and lower the price of exports. Running contrary to this is a second option: increasing domestic savings and lowering government spending. These theories both aim to decrease American dependence upon foreign imports and investment, and ultimately equalize the enormous trade deficit that currently exists.
Prasad, Eswar S., et al. “Effects of Financial Globalization on Developing Countries: Some Empirical Evidence.” The National Bureau of Economic Research. National Bureau of Economic Research, 2003. Web. 10 Dec. 2013. .
The liberalization of capital developments and deregulation, particularly of fiscal administrations, prompted a spurt in cross-border capital flows. The globalization of financial markets has triggered a rapid growth in investment portfolio ...
Ferguson et al. International financial stability. Geneva: International Center for Monetary and Banking Studies, 2007. Print.