Category: Economics


How coherent was the National government’s response to mass unemployment after 1931 in Britain?

The interwar years were some of the most turbulent in the history of Britain. Given the strong trade and diplomatic links between Britain and the rest of Europe and North America, the former’s economic stability depended on several external factors. The Great Depression that struck the United States in 1929 had repercussions across Europe. The mass unemployment witnessed in Britain during this period is not merely a coincidence.  On the political front the rise of the Nazi Party in Germany gave rise to distrust and apprehensions of war.  In this respect, the social history of interwar Britain is one highly influenced by unravelling economic and geo-political conditions.  To go with widespread unemployment there were also conflicts across class lines.  The General Strike and the hunger marches that were witnessed during this period were expressions of public frustration.  Although the national government was outwardly sympathetic to public angst, and on occasion participated . . . Read More

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Sewing for Millionaires: Rawlings’ operations in Costa Rica

  1. In your opinion, is Rawlings exploiting its Costa Rican employees? Explain your answer.

In my opinion, I don’t think Rawlings’ operations in Costa Rica are exploitative.  The very nature of capitalist enterprise is such that cost efficiency is a major driver of business.  To criticize Rawlings for doing what it is legally mandated to do (namely, to seek profits for is shareholders) is quite unfair.  Moreover, critics are not appreciating how Rawlings has created jobs in the Costa Rican economy. Companies such as Rawlings have helped consolidate Costa Rican economy.  It is in recognition of this fact that the Costa Rican government has offered special economic zone status to Rawlings and other MNC manufacturing units.

Even when one looks at wages and employee benefits, Rawlings has done nothing illegal.  The company has adhered to minimum wage standards of Costa Rica.  Further it complies by paid-leave and medical insurance . . . Read More

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Should the USA lower, raise, or maintain its corporate tax rates?

Taxes are always a contentious issue in American politics. The two leading parties in the country have their own views on taxes.  The Republicans are mostly in favor of tax cuts for businesses, whereas the Democrats generally favor proportionately high taxes for the rich.  In my personal opinion I support a progressive tax regime that levies a greater tax rate on corporations and rich individuals.  The rationale for this position is the prevailing disparities in American society.  Despite being the richest country in the world, the United States lags behind in welfare and social security features.

The revenues collected through a progressive tax regime can be utilized to strengthen the public healthcare system.  As it stands, the United States has more than 50 million citizens without health insurance.  This is a shocking statistic, for with only a fraction of the yearly military budget, health access and healthcare outcomes in the country could be improved multifold. . . . Read More

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Article Review – A Universal Healthcare System: Is It Right for the United States? By Marleise Rashford

Abstract

The prevailing healthcare system in the United States has drawn many criticisms – from healthcare professionals and citizens alike.  The American system fares badly compared to nationalized public health systems of Western Europe. Even in terms of overall costs, the American model is more expensive, which is significantly inflated by bureaucracy costs.  All comparative evidence points in one direction – that the country would benefit through an overhaul of the healthcare system. Single payer and universal insurance coverage are the cornerstones of the optimal system.  Posing hurdles for this noble objective are vested private interests in the form of private insurance companies, ideologically entrenched politicians and to a lesser extent, healthcare providers.

Why is the article relevant to our course discussions on the U.S. Healthcare system?

The issue of healthcare is a pressing social problem in the United States.  . . . Read More

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‘Two Cheers for Materialism’ by James Twitchell & ‘Profiles in Splurging’ by Randall Patterson : A combined overview

In “Two Cheers for Materialism,” James Twitchell posits that “We live through things, we create ourselves through things and we change ourselves by changing our things.” When we look at this claim by the author, it sounds like a veiled criticism of a materialist culture. But through numerous apt examples and nuanced explanations, Twitchell comes around to acknowledge the power of consumerist impulses and seeks to explain what drives them.  He also argues that capitalist consumerism is not something that is imposed on people as academic critics often claim. Instead, the continued thriving of consumerism is due to our own innate needs, desires and aspirations. The article by Randall Patterson titled ‘Profiles in Splurging’ complements Twitchell’s core thesis.  This essay will qualify the aforementioned working thesis by considering all the facts and arguments presented in these two articles.

To a great extent, the claim in the working thesis can be viewed as a . . . Read More

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What are the many cultural, political & geo-economic challenges faced by organisations operating in a global environment. How could they be addressed?

The major cultural challenges facing a global enterprise is understanding and adapting to local business customs and norms. In the Real World Case we saw how business in Africa tends to go on at a leisurely pace – a practice that undermines the principles of efficiency and expediency that multi-national enterprises thrive on. Understanding cultural sensibilities and adapting to them requires an open-mind and a flexible management approach. This can prove quite challenging if the top management is too engrained in their B-school trained approach. Often government bureaucracy or red tape can hinder expedient project execution. Red-tape can thus be considered both a cultural and political issue. Another political issue is the state of development. As emerging economies are mostly from the Third World, the available infrastructure can be quite rudimentary. This is a geo-economic challenge, for a majority of the population might be IT illiterate, as reflected in minimal usage of . . . Read More

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Book Review: Dust Bowl, USA: Depression America and the Ecological Imagination, 1929-1941 by Brad Lookingbill

During the 1930s, the American Midwest region witnessed one of its most acute agricultural droughts in the history of the nation.  But this tragic event does not get as much attention as it deserves in history textbooks.  The main reason for this is its coincidence with the Great Depression that precipitated in 1929 with the stock market crash and continued into the next decade. The sweep and magnitude of the Great Depression was such that it overwhelmed attention to an equally catastrophic drought unfolded in several states in the Midwest.  Hence the main purpose of Brad Lookingbill is to fill a perceived deficiency in scholarship pertaining to this event.

Lookingbill does a satisfactory job of covering the basis causes and the most prominent consequences of the event.  As for the causes, Lookingbill identifies expansive and exploitative farming techniques and strategies as a major cause.  In particular, it is the technology of mass-production, innovations in irrigation . . . Read More

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Against Marx and Engels’ criticism of private ownership

One of the cornerstones of Marxist economic theory is the abolition of private property and in its stead have common communal rights.  This is a noble and idealistic idea but one suffering from lack of applicability.  It has been proven true on many occasions that people are motivated to work hard when they are offered material incentives.  The possibility and potential to own a house or a car or a jewel is what motivates most of us to work.  Such being human psychology, it is futile to think of idealistic conceptions espoused by Marx and Engels.  A cursory look at the state of commons underscores the ineffectiveness of this mode of ownership.  For example, our environment is degrading at a rapid pace.  The quality water in the oceans and rivers, the pollution levels in the air we breathe and the steady destruction of erstwhile pristine ecosystems can all be attributed to lack of private ownership.  If only all these resources were privately owned, it is difficult to foresee . . . Read More

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Defense Spending and the Military-Industrial Complex

Dwight Eisenhower’s warnings about the Military-Industrial Complex have proved prophetic in the years since. Addressing the nation on occasion of his tenure’s closure, he reminded Americans about the threat to democratic policy-making posed by this corrupt nexus. Levin-Waldman’s concept of the ‘iron triangle’ closely aligns with Eisenhower’s understanding. Indeed, the former President had to strike out Congress from his original Military-Industrial-Congressional Complex as his advisers deemed it to be too provocative (but factual nonetheless). In the Levin-Waldman model, we can substitute the Military as the dominant ‘interest group’, whose lobbyists are constantly pressurizing members of the Congress and Senate to get passed legislations favoring their industry.

The veracity of Eisenhower and Levin-Waldman claims are evidenced in budgetary allocations to the arms industry. The United States has by far the most powerful military in the world. Despite having no . . . Read More

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What is Social Capital?

The journal article by James Coleman titled Social Capital in the Creation of Human Capital talks in detail about the concept of Social Capital. The author identifies three predominant forms in which social capital manifests: “obligations and expectations, information channels, and social norms”. Social structural conditions under which social capital is created are explained in detail. He prefers the ‘rational action paradigm’, whereby social capital is useful for constructive social action. The author takes surveys of high school students in America to validate his theories and assumptions.

Coleman’s criticizes both the dominant analytic paradigms of social action.  Under the sociological model, the actor is seen as socialized and the action governed by social norms, rules and obligations.  The “principal virtues of this intellectual stream lie in its ability to describe action in social context and to explain the way action is shaped, constrained, and . . . Read More

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