The Changing Definition of Jihad Essay -- Jihad, Terrorism, Terrorists

Jihad and the Crusades Every great historical moment, leader and religion is focused around a uniting influence. Saladin, a great Kurdish Muslim warrior during the time of the Crusades, and the Muslim armies employed the lesser, or violent jihad to fortify support and power in the Holy Lands. Throughout the eleventh and twelfth centuries the term â€Å"jihad† was used in several different contexts with varying meanings and intentions. Saladin used a favorable definition and interpretation of Jihad in order to unite the Muslims and create a massive army to defend Islam from the Christian Crusaders. In order to completely understand the word, its origins, and its uses, the original passages from the Qur’an must be analyzed and interpreted. Islam, as a faith, is supposed to be peaceful and preaches inner strength. Violence of any kind is in direct contradiction to the teachings of Mohammad and the Islamic faith. The only exception in using violence is in the case of a declared jihad, or holy war for the protection of Islam. The reasons for this exception for violence and its proper uses are controversial in that there is little reassurance that Allah would support or deny support for a war. However it is clear that the meaning and use of jihad was manipulated during the Crusades for the benefit of Islam, as it can be argued that Saladin fought not for Allah, but out of anger towards the Christians and to protect and grow his own wealth and lands. In the present day the term jihad is used more and more in the press however the meaning of the word has gained an increasingly violent connotation over time. While jihad has been bastardized over time it’s origins appear to be pure and devout to the Islamic faith. The history and origins of jihad are found in the Qur’an and the teachings of the Prophet Mohammad who died in 632 AD. Throughout the Qur’an there are several references to jihad as a personal and inner struggle to become a better person. The Islamic faith is based upon striving for a life that is worthy in God’s eyes. A personal jihad is basically the struggle to avoid temptations and stay on the right path to salvation and for God, which is what the prophet Mohammed preached throughout his life. One scholar writes, â€Å"Muslims for centuries have engaged themselves and the world in pursuit of inner jihad. This has been their way of ... ...an inner struggle to follow the teachings of Islam remains a core value in Muslim faith. While Saladin’s interpretation of Jihad changed the religion of Islam, it was not nearly as radical as the present day alterations. Works Cited Gabrieli, Francesco and E. J. Costello, trans. Arab Historians of the Crusades. London: Routledge & Kegan Paul, 1969. "History of Jihad." News on Terror. News on Terror, 04/15/2010. Web. 15 Apr 2010. . Ibn Al-Qalanisi. The Damascus Chronicle of the Crusades. Trans. H. A. R. Gibb. London: University of London Historical Series V, 1932. "Inner Jihad". The Canadian Society of Muslims. 3/29/10 canada.org/jihadshahid.html>. "Jihad: Holy Struggle or Holy War". CARM. 3/29/10 holy-war>. The Hoy Bible. Revised Standard Version. New York, NY: Meridian, 1962. The Qur'an (Oxford World's Edition, revised 2008 paperback edition) Usamah ibn Munqidh. An Arab-Syrian Gentleman and Warrior in the Period of the Crusades. Trans. P. K. Hitti. New York: Columbia University Press, 1929. The Changing Definition of Jihad Essay -- Jihad, Terrorism, Terrorists Jihad and the Crusades Every great historical moment, leader and religion is focused around a uniting influence. Saladin, a great Kurdish Muslim warrior during the time of the Crusades, and the Muslim armies employed the lesser, or violent jihad to fortify support and power in the Holy Lands. Throughout the eleventh and twelfth centuries the term â€Å"jihad† was used in several different contexts with varying meanings and intentions. Saladin used a favorable definition and interpretation of Jihad in order to unite the Muslims and create a massive army to defend Islam from the Christian Crusaders. In order to completely understand the word, its origins, and its uses, the original passages from the Qur’an must be analyzed and interpreted. Islam, as a faith, is supposed to be peaceful and preaches inner strength. Violence of any kind is in direct contradiction to the teachings of Mohammad and the Islamic faith. The only exception in using violence is in the case of a declared jihad, or holy war for the protection of Islam. The reasons for this exception for violence and its proper uses are controversial in that there is little reassurance that Allah would support or deny support for a war. However it is clear that the meaning and use of jihad was manipulated during the Crusades for the benefit of Islam, as it can be argued that Saladin fought not for Allah, but out of anger towards the Christians and to protect and grow his own wealth and lands. In the present day the term jihad is used more and more in the press however the meaning of the word has gained an increasingly violent connotation over time. While jihad has been bastardized over time it’s origins appear to be pure and devout to the Islamic faith. The history and origins of jihad are found in the Qur’an and the teachings of the Prophet Mohammad who died in 632 AD. Throughout the Qur’an there are several references to jihad as a personal and inner struggle to become a better person. The Islamic faith is based upon striving for a life that is worthy in God’s eyes. A personal jihad is basically the struggle to avoid temptations and stay on the right path to salvation and for God, which is what the prophet Mohammed preached throughout his life. One scholar writes, â€Å"Muslims for centuries have engaged themselves and the world in pursuit of inner jihad. This has been their way of ... ...an inner struggle to follow the teachings of Islam remains a core value in Muslim faith. While Saladin’s interpretation of Jihad changed the religion of Islam, it was not nearly as radical as the present day alterations. Works Cited Gabrieli, Francesco and E. J. Costello, trans. Arab Historians of the Crusades. London: Routledge & Kegan Paul, 1969. "History of Jihad." News on Terror. News on Terror, 04/15/2010. Web. 15 Apr 2010. . Ibn Al-Qalanisi. The Damascus Chronicle of the Crusades. Trans. H. A. R. Gibb. London: University of London Historical Series V, 1932. "Inner Jihad". The Canadian Society of Muslims. 3/29/10 canada.org/jihadshahid.html>. "Jihad: Holy Struggle or Holy War". CARM. 3/29/10 holy-war>. The Hoy Bible. Revised Standard Version. New York, NY: Meridian, 1962. The Qur'an (Oxford World's Edition, revised 2008 paperback edition) Usamah ibn Munqidh. An Arab-Syrian Gentleman and Warrior in the Period of the Crusades. Trans. P. K. Hitti. New York: Columbia University Press, 1929.

Evaluation of a business code of ethics Essay

Ethical behavior from employees is the foundation for a successful business. Trevino and Nelson define ethical behavior as being, â€Å"consistent with the principles, norms, and standards of business practice that have been agreed upon by society (2007, p. 16, para. 1). A code of ethics is an example of the way a company would have employees act; an instruction manual for ethical behavior. Simply possessing a code of ethics does not guarantee ethical behavior from employees. Therefore, a code of ethics must outline consequences for violations. Employers must enforce the code as well. A code of ethics ensures that, if followed, employees will work diligently with integrity and expertise, safeguard confidential information, and do so in a professional manner. Implementing and maintaining a code of conduct and ethics creates stakeholder confidence in a multinational financial services company. MetLife is one of the largest financial services companies in the world as well as the number one life insurance company in the United States; providing services worldwide in the following areas: investments, financial planning, banking, and insurance. MetLife was formed as a mutual insurance company in 1864 in the wake of the American Civil War. The company would insure Civil War veterans against disabilities because of wartime injuries and sickness. After a rough start in the first four years and several reorganizations, the company started to focus primarily on the life insurance industry; a move that would establish MetLife as one of the largest companies in the United States. Over the span of 143 years MetLife grew significantly through acquisitions and continuing to provide superior service and support to clients. Most recently MetLife acquired American Life Insurance Company (ALICO), and provides people financial services, life insurance, health insurance, and investments, in the following counties: Australia, China, India, Japan, Korea, and Pakistan. This acquisition has given MetLife a dominant spot in the global financial services market making MetLife the largest insurance company in the world. With more than 50,000 employees worldwide, management  accentuates an ethical corporate culture with a compliance department that goes above any state or federal regulations with strict compliance monitoring. Management also creates a positive working environment free of harassment in any form and develops employees with goals of creating professional relationships that last a lifetime as well as achieving high levels of sales and pay. In addition to MetLife’s code of ethics all officers, managers, and employees are must follow and obey all applicable states and federal laws, company policies, and industry regulations where they hold a license to avoid any perception of impropriety. MetLife’s Chief Executive Officer Robert Henrickson states, â€Å"For 140 years, MetLife has helped individuals and institutions build and protect their most valuable assets† (MetLife, 2005, p. 2). In accordance with this reputation, MetLife has a code of ethics in place to support these efforts with the core values integrity and honesty as the foundation of the ethical culture within the company. These core values are vital to the company achieving the MetLife vision; to build financial freedom for everyone. The code of ethics at MetLife is a voluntary code of conduct that emphasizes a duty-based ethical system. The foundation for the code is broad and encompasses the following corporate values: integrity, expertise, suitability, full disclosure, fair competition, service, brand, confidentiality, professionalism, and reputation. However, a code of ethics does not guarantee ethical behavior. Managers enforce the code of ethics with employees as well as administer legal or disciplinary action that results from a deviation from the code of ethics. In the financial services industry deviations from compliance may result in a producer and manager getting in serious trouble. Trouble can be anything from fines to arbitration hearings and loss of licenses and registration. Therefore, many employees genuinely try to make a living and build a successful career following the code of ethics. This is a result of the organizational culture at MetLife. Employees and managers must make minimum sales number each year and failing to hit target numbers results in termination. Any major deviation from MetLife’s code of ethics that results a fine or legal action against the company will have the same end. There is a strong acceptance and adherence to the code of ethics. For example during quarterly compliance meetings employees get refresher training on important state and federal tax laws that change often. The effect this has on the organization is a positive one. However, there are exceptions to this as some employees and competitor’s employees just have bad personal ethics and draw negative attention to the industry for bad business practices. A recent example is the Ponzi scheme committed by Bernard Madoff. In one of the worst periods of economic uncertainty Madoff defrauded thousands of investors out of billions of dollars and at the same time planted the seeds of consumer mistrust against individuals working in the financial services industry. Management expects employees to â€Å"do the right thing† for clients. The primary focus for employees is to achieve MetLife’s vision through fair sales practices, excellent customer service, and making suitable recommendations to clients. Employees must adhere to strict corporate compliance monitoring that goes above state and federal regulations. For example an independent insurance agent, non-MetLife, must complete 16 hours of state mandated continuing education classes each year whereas a MetLife agent must comply with state regulations as well as MetLife’s annual continuing education courses. MetLife’s courses are intentionally more in-depth than the material that the state courses cover and emphasize ethics in all business practices. MetLife is proud of the reputation the company has established in the financial services industry and expects employees to operate their personal business with â€Å"the highest standards of conduct in all business endeavors† (MetLife, 2010, p. 7). Managers also follow the same code of conduct and  ethics. And can be held accountable for employee violation of the code of ethics. Management must adhere to strict company guidelines and complete many more continuing education classes that cover a variety of topics; some that employees take as well as many others that focus on corporate compliance regulations. State and federal laws to abide by so MetLife has its own regulations that cover all states and goes beyond any individual state’s laws or regulations. Each employee, manager or producer must complete an annual compliance review and demonstrate an understanding of the concepts and practices covered by the code of ethics. Corporate ethics and compliance managers hold quarterly and annual compliance meetings with all employees to discuss industry incidents and violations that cost other companies and producer’s money, court proceedings, and careers. In the code of ethics there is little space for change to make monitoring employees easier or any individual employee more compliant. In the financial services industry state and federal laws change or are undergo tweaks a little each year. To that end MetLife releases a code of ethics each year that outlines any new practices or changes in the way employees are to do business, always keeping standards consistent with MetLife’s vision. In short, a code of ethics is a necessary tool for management in an organization such as MetLife. All directors, managers, and employees are expected to read the code of ethics and refer to it when making critical decisions. The company keeps employees up to date with compliance meetings and maintains a high standard of compliance monitoring and reviews. However, ethical behavior is not guaranteed simply because these systems are in place or available for review. Managers set the example for employees and set the standard for the employees they supervise. Under the duty-based system in place employees are expected to do the right thing for clients. The company hires from within only the best employees into management positions. This ethical system keeps organization simple while maintaining a strong compliance keeps financial transactions ethical and in line with  MetLife’s vision; to build financial freedom for everyone. References Metropolitan Life Insurance Co. (2009). Keeping Our Promises. Retrieved February 6, 2011 from www.metlife.com/assets/investments/products/annuities/CLVA6037-3.pdf Metropolitan Life Insurance Co. (2010). Representative Compliance Manual. How We Do Business. Retrieved February 5, 2011 from https://imetlife.metlife.com/wps/myportal/rpp/content? contentId=8ac6c697baa72210VgnVCM1000000ae818acRCRD Trevià ±o, L. K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right (4th ed.). Hoboken, NJ: Wiley.

Evaluation of a business code of ethics Essay

Ethical behavior from employees is the foundation for a successful business. Trevino and Nelson define ethical behavior as being, â€Å"consistent with the principles, norms, and standards of business practice that have been agreed upon by society (2007, p. 16, para. 1). A code of ethics is an example of the way a company would have employees act; an instruction manual for ethical behavior. Simply possessing a code of ethics does not guarantee ethical behavior from employees. Therefore, a code of ethics must outline consequences for violations. Employers must enforce the code as well. A code of ethics ensures that, if followed, employees will work diligently with integrity and expertise, safeguard confidential information, and do so in a professional manner. Implementing and maintaining a code of conduct and ethics creates stakeholder confidence in a multinational financial services company. MetLife is one of the largest financial services companies in the world as well as the number one life insurance company in the United States; providing services worldwide in the following areas: investments, financial planning, banking, and insurance. MetLife was formed as a mutual insurance company in 1864 in the wake of the American Civil War. The company would insure Civil War veterans against disabilities because of wartime injuries and sickness. After a rough start in the first four years and several reorganizations, the company started to focus primarily on the life insurance industry; a move that would establish MetLife as one of the largest companies in the United States. Over the span of 143 years MetLife grew significantly through acquisitions and continuing to provide superior service and support to clients. Most recently MetLife acquired American Life Insurance Company (ALICO), and provides people financial services, life insurance, health insurance, and investments, in the following counties: Australia, China, India, Japan, Korea, and Pakistan. This acquisition has given MetLife a dominant spot in the global financial services market making MetLife the largest insurance company in the world. With more than 50,000 employees worldwide, management  accentuates an ethical corporate culture with a compliance department that goes above any state or federal regulations with strict compliance monitoring. Management also creates a positive working environment free of harassment in any form and develops employees with goals of creating professional relationships that last a lifetime as well as achieving high levels of sales and pay. In addition to MetLife’s code of ethics all officers, managers, and employees are must follow and obey all applicable states and federal laws, company policies, and industry regulations where they hold a license to avoid any perception of impropriety. MetLife’s Chief Executive Officer Robert Henrickson states, â€Å"For 140 years, MetLife has helped individuals and institutions build and protect their most valuable assets† (MetLife, 2005, p. 2). In accordance with this reputation, MetLife has a code of ethics in place to support these efforts with the core values integrity and honesty as the foundation of the ethical culture within the company. These core values are vital to the company achieving the MetLife vision; to build financial freedom for everyone. The code of ethics at MetLife is a voluntary code of conduct that emphasizes a duty-based ethical system. The foundation for the code is broad and encompasses the following corporate values: integrity, expertise, suitability, full disclosure, fair competition, service, brand, confidentiality, professionalism, and reputation. However, a code of ethics does not guarantee ethical behavior. Managers enforce the code of ethics with employees as well as administer legal or disciplinary action that results from a deviation from the code of ethics. In the financial services industry deviations from compliance may result in a producer and manager getting in serious trouble. Trouble can be anything from fines to arbitration hearings and loss of licenses and registration. Therefore, many employees genuinely try to make a living and build a successful career following the code of ethics. This is a result of the organizational culture at MetLife. Employees and managers must make minimum sales number each year and failing to hit target numbers results in termination. Any major deviation from MetLife’s code of ethics that results a fine or legal action against the company will have the same end. There is a strong acceptance and adherence to the code of ethics. For example during quarterly compliance meetings employees get refresher training on important state and federal tax laws that change often. The effect this has on the organization is a positive one. However, there are exceptions to this as some employees and competitor’s employees just have bad personal ethics and draw negative attention to the industry for bad business practices. A recent example is the Ponzi scheme committed by Bernard Madoff. In one of the worst periods of economic uncertainty Madoff defrauded thousands of investors out of billions of dollars and at the same time planted the seeds of consumer mistrust against individuals working in the financial services industry. Management expects employees to â€Å"do the right thing† for clients. The primary focus for employees is to achieve MetLife’s vision through fair sales practices, excellent customer service, and making suitable recommendations to clients. Employees must adhere to strict corporate compliance monitoring that goes above state and federal regulations. For example an independent insurance agent, non-MetLife, must complete 16 hours of state mandated continuing education classes each year whereas a MetLife agent must comply with state regulations as well as MetLife’s annual continuing education courses. MetLife’s courses are intentionally more in-depth than the material that the state courses cover and emphasize ethics in all business practices. MetLife is proud of the reputation the company has established in the financial services industry and expects employees to operate their personal business with â€Å"the highest standards of conduct in all business endeavors† (MetLife, 2010, p. 7). Managers also follow the same code of conduct and  ethics. And can be held accountable for employee violation of the code of ethics. Management must adhere to strict company guidelines and complete many more continuing education classes that cover a variety of topics; some that employees take as well as many others that focus on corporate compliance regulations. State and federal laws to abide by so MetLife has its own regulations that cover all states and goes beyond any individual state’s laws or regulations. Each employee, manager or producer must complete an annual compliance review and demonstrate an understanding of the concepts and practices covered by the code of ethics. Corporate ethics and compliance managers hold quarterly and annual compliance meetings with all employees to discuss industry incidents and violations that cost other companies and producer’s money, court proceedings, and careers. In the code of ethics there is little space for change to make monitoring employees easier or any individual employee more compliant. In the financial services industry state and federal laws change or are undergo tweaks a little each year. To that end MetLife releases a code of ethics each year that outlines any new practices or changes in the way employees are to do business, always keeping standards consistent with MetLife’s vision. In short, a code of ethics is a necessary tool for management in an organization such as MetLife. All directors, managers, and employees are expected to read the code of ethics and refer to it when making critical decisions. The company keeps employees up to date with compliance meetings and maintains a high standard of compliance monitoring and reviews. However, ethical behavior is not guaranteed simply because these systems are in place or available for review. Managers set the example for employees and set the standard for the employees they supervise. Under the duty-based system in place employees are expected to do the right thing for clients. The company hires from within only the best employees into management positions. This ethical system keeps organization simple while maintaining a strong compliance keeps financial transactions ethical and in line with  MetLife’s vision; to build financial freedom for everyone. References Metropolitan Life Insurance Co. (2009). Keeping Our Promises. Retrieved February 6, 2011 from www.metlife.com/assets/investments/products/annuities/CLVA6037-3.pdf Metropolitan Life Insurance Co. (2010). Representative Compliance Manual. How We Do Business. Retrieved February 5, 2011 from https://imetlife.metlife.com/wps/myportal/rpp/content? contentId=8ac6c697baa72210VgnVCM1000000ae818acRCRD Trevià ±o, L. K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right (4th ed.). Hoboken, NJ: Wiley.

10 Page Term Paper

10 Page Term Paper 10 Page Term Paper 10 Page Term Paper If you are writing a 10 page term paper, you must pay special attention to the quality of information and structure. In particular, you should use headings and subheadings to ensure a better flow of ideas. is a professional and legal site offering custom term paper writing help to students who care about their grades but have no time to write term papers. In addition, we have an absolutely free paper writing blog with numerous tips on writing and pre-written sample term papers. Sample Term Paper on Baby Boom A necessary step in scientific speculation is to specify precisely what is to be explained. At the demographic level, we have explained the baby boom mainly as an increase in the proportion of women having at least two children accompanied by a compression of fertility into a shorter, earlier period of time. (Another way of describing the same phenomenon is in terms of a significant decline in the average age of childbearing.) Being married and having a family (though not a large family) had become the norm during the decade after the war. Bachelorhood, childlessness and having only one child became increasingly unusual. What kinds of social change occurred during this period that might help explain this trend? One persuasive theory proposed by economist Richard Easterlin is that the postwar period witnessed a combination of two basic forces which encouraged optimism and relaxed earlier constraints on marriage and having children: an unprecedented demand for goods and services otherwise known as the postwar economic boom; and an accompanying shortage of labor. This shortage was caused by low birthrates in the twenties and early thirties which reduced the number of job seekers two decades or more later. In former periods, this demand for labor was met by immigration but the restrictive legislation of the twenties had effectively dried up this source of labor. Thus young people in the early 1950's were relatively few in number and were faced with many well-paying job opportunities in a rapidly expanding economy a particularly propitious set of circumstances for encouraging the formation of families. Other factors also contributed to what appeared to be a headlong rush into marriage and childbearing. Credit for home purchases and other consumer goods became widely available. With little investment and long amortization schedules it became possible for masses of people to satisfy home ownership aspirations, to escape the city and to have a better place for the kids to grow up. With little or no down payment required, suburban developments mushroomed and young couples with young children moved in, their homogeneous concentrations undoubtedly reinforcing the norm of fertility. Pregnancy and motherhood no longer signified a withdrawal from social life; on the contrary, pregnancy seemed almost fashionable at the time. In the new child-centered suburban life separated physically and psychologically from the work environment -childlessness was the deviant form of behavior. The pressures for conformity were such that sterility was probably a more socially acceptable justification of chi ldlessness than lack of interest in children. Term Paper Custom Writing If you need professional help with 10 page term paper writing, do not hesitate to use our custom term paper writing assistance at any time. We are open 24/7 and guarantee timely delivery. Our term paper writers are educated and you will be satisfied with the quality level!

Giovanni da verrazano essays

Giovanni da verrazano essays Verrazano was born and raised in Lyons, France, in a castle. He always went to Florance,Italy, because thats where his grandparents lived. Verrazano had a brother, two Grandparents, and a father. Verrazanos father owned three factories. Giovanni went to France to explore and he was 17 years old. He had an interesting first 17 year. He had two purposes on his voyage. Verrazanos first purpose was that he was going to bring rawsilk, spices, and insents back from the Spice Islands. His second purpose was that he had to find the Northwest Passage. They left in Spring of 1523. The voyage was sponsored by the king of France and some other welthy people in France. The only person Verrazano knew on the ship was his brother. When he started his voyage he had to go south because they had treaty with Spain to not go into the Atlantic Ocean. They went anyway, but had to go south from the port of Marcielle to not let Spain see them. They landed in the unhabited cove of Porto Santo. Thats where they found food and loaded up the ship and left again. Then they got to the east coast, they made sure they didnt go as south as Florida, where the Spanish ruled. While he was going up the coast he saw indians excited dancing on the beach. He went to the beach and met the indians, and that beach happened to be Kitty Hawk. Giovanni da Varrazano kept on going until he found a natural harbor, when he saw fire and landed. He sent a large canoe to the land, except the boat got stuck and Varrazano sent his best swimmer to get them. The swimmer rescued the canoe, but he drowned. They headed back toward France and made it back safely. He was mad that he didnt find the Northwest Passage. The voyage was a safe one. Varrazano has an exciting elderly life. He went back to Long Island and since he had invaded the indians land 20 years before, the indians murdered him. and that was the end of his life. Later, they built a bridge to Lo...

Schools and Relationship with Childhood Essay Example | Topics and Well Written Essays - 2250 words

Schools and Relationship with Childhood - Essay Example This essay "Schools and relationship with childhood" will explore the concept of society as well as the fundamental role education plays in developing the society. In the period 1780-1920, Britain transitioned from the agricultural to the industrial society. This transition introduced new set of challenges to the United Kingdom such as poverty, huge population density, and political concerns. Most assuredly, we can learn much from the past for the sake of improving the present and preparing for the future. Looking at the history of education, we can see that education has played a major role in the development of societies, starting with the ancient Greece. Plato had an idea that we have to educate our leaders to have the development we seek for our societies. His ideas correlate with the ideas of the eighteenth and nineteenth century philosophers for educating the masses in order to solve the encountered in England. This essay will also explore how the need for change in British soc iety influenced education and investigate the changes that applied to childhood. There will be mentioned three examples; Firstly, the `Monitorial School`, which was invented by Joseph Lancaster between 1778 and 1839. This will entail finding out more about the need for creating this school. Secondly, David Stow established the ‘Moral Training System’. Thirdly, we have the ‘Elementary Education Act’. Moreover, paper discusses how these institutions thought of pupils, in comparison with present views of childhood. School as a Solution for the New Social Problems In the years 1780-1920, the United Kingdom was transforming from an agricultural society to an industrial society. Alongside the change, people started to move from the countryside to live in cities. Consequently, new problems appeared in the society especially in the ‘laboring classes’. For instance, in the year 1806, London had witnessed new problems like population density and rise in crime. Hence, political ideas in the nation focused on finding solutions to issues of ‘

Macro3B Essay Example | Topics and Well Written Essays - 1000 words

Macro3B - Essay Example The expenditure multiplier is a constant that gives the value (a ratio) to what you will put in the economy and what you will get out of it as a result. It is an increased (multiplied) value because once money comes into the economy; it changes many hands and gradually multiplies. We first need to know the value of the multiplier before determining the amount by which we ought to increase government spending. Multiplier = 1 / MPS We know what the MPC is because MPC + MPS = 1 We can find out the value of MPS that is: 0.8 + MPS = 1 MPS = 1 – 0-.8 MPS = 0.2 Since MPS = 0.2, Multiplier = 1 / MPS Multiplier = 1 / 0.2 Multiplier = 5 At present, the economy lacks behind full employment by $2000 as the full employment level is $10,000 and we are currently at $8,000 (10,000 – 80000), to fulfill this gap, we will not increase government spending by 2000 as that would increase the total output to a large extent owing to the presence of the Expenditure multiplier, therefore we woul d increase it by: 2000 / Multiplier 2000 / 5 = $400 A $400 increase in Government spending would automatically trigger an increase of $2000 in the economy owing to the presence of the multiplier (i.e. 400 * 5 = $2000) Question 2: The other aspect of Fiscal tool that the government has on its disposal is the â€Å"taxes† which it can alter depending on the state of the economy. Since the President has asked me to work on the fiscal measure owing to popular public demand, we can work with it as well. First of all, it is important to understand that taxes are not a direct component of the GDP unlike government expenditure; they influence consumption. Also, tax cuts are feared to be saved to an extent depending on the public’s expectations (example, if there is more employment in the economy, GDP is likely to rise greatly, however, decreases in tax rates might even be saved by the households), therefore, the value of the tax multiplier is less than that of the expenditure multiplier; which means I would have to reduce taxes to a greater extent as compared to government expenditure to get the $2000 increase in GDP. Tax Multiplier: MPC / MPC Since MPC = 0.8 and MPS = 0.2 Tax Multiplier = 0.8 / 0.2 Tax Multiplier = 4 (Which is one less than the expenditure multiplier that was â€Å"5†) For the economy to boost to full employment, tax cuts would have to be given in accordance with the multiplier: 2000 / Tax Multiplier 2000/4 = $500 Therefore, it is evident, for the economy to go to the full employment level of $10,000, tax cuts worth 500 have to be given (which are 100 more than the expenditure if the government were to use that). This makes the government spending policy more attractive as compared to giving tax incentives to people. Question 3: If the president were to match increases in federal government expenditures with the offsetting increases in taxation, it would never give out a balanced budget. It is important to note that because of a leakage i.e. saving, a tax cut never gives out its full multiplier effect; tax cuts affect consumption and are not a direct part of the GDP. On the other hand, government expenditure is direct component of GDP as shown: Taking closer looks at the formula of tax multiplier (i.e. MPC/MPS) and comparing it to the expenditure multiplier, one would realize that the tax multiplier would always be â€Å"1† less than the government expenditure multiplier; therefore equal increases or decreases in both would not give out a balanc