National Economic Policy in Australia

Introduction Terms of trade are an important measure of economic performance. It refers to the ratio of export prices to import prices. If reflects the capacity for a given volume of Australias exports to pay for a given volume of its imports.Advertising We will write a custom essay sample on National Economic Policy in Australia specifically for you for only $16.05 $11/page Learn More Improved terms of trade is significant to Australia since it enables the country to indulge in the purchase of more imports given its level of exports to the rest of the world. However, volatility in a countrys terms of trade results in volatility in investment, consumer spending, inflation, and economic growth. Consequently it makes macro-economic management extremely difficult (Gruen 2011, p. 5). Reasons for the Main Movements in Australia’s Terms of Trade over the Last Decade Impacts of Major World Economic Events Global economic conditions have been one of the k ey drivers of Australias term of trade in the past decade. In particular, previous cycles in economic growth among Australia’s main trading partners and the Great 7 (G7) countries have often resulted in swings in Australia’s terms of trade. These swings were mainly evident in the post 2007 global financial crisis. According to Australia Treasury (2012, p. 9), Australias terms of trade has suffered from the ongoing recession in the Euro area, slow recovery in the United States and reduced demand in the emerging Asian economies. These volatilities in international economic growth rates have consequently resulted in volatility in Australias terms of trade. Diversification of Australia’s Export Base Compared to the 1970s and 80s, Australia’s volatility in terms of trade has significantly declined from the 90s to present. This decline is attributed to export diversification efforts. Australia diversified its exports especially in terms of its industrial sector (Valadkhani, Layton Karunaratne, 2005, p. 295). Traditionally, primary products were the dominant exports (mining and agricultural products).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, in the recent past the country has diversified to manufacturing and of late the services sector. The performance of the country beginning from the year 200 onwards in terms of knowledge intensive exports was good. Currently, China is the leading importer of Australias services (Austrade 2012, p. 1). Decline in Price of Australia’s Exports Australia is a resource rich nation exporting metal ore and minerals. In the 1980s and 1990s, rapid industrialization and urbanization in China resulted in strong growth in the demand for Australias major commodity exports. The strong demand from Asia, and expectations that the demand will continue to grow drove commodity prices to high levels and attr acted record investments in Australias resources industry (Gregory 2011, p. 44). However, in the past decade, Australia witnessed adecline in prices for these resources in the international market in the past decade has in turn adversely affected the countrys terms of trade. For example, in 2009, slow growth in the Chinese economy resulted in a high trade deficit for Australia given that China is one of the countrys major trading partners. According to the (Australian 2012, p. 1), in October 2012, earnings from minerals and metal ore declined by 7% as a result of the falling prices in the international market. In fact major mining companies in Australia such as Rio Tinto and BHP Billiton deferred investing billions into the mining sector and instead chose close their mines because of the declining prices and Australias poor currency strength. Impact of a Decline in the Terms of Trade on the Australian Economy Mundell-Flemming Model Under the model, international and domestic interes t rates are assumed to the same. Australia being an open economy, we analyze the effect of a decline in the terms of trade in the short run using the Mundell-Flemming Model. Australias GDP (Y) is a function of consumption (C= C(Y-T); Investment (I(r)); Government Expenditure (G), and Net Exports (NX(e)). The model has three equations:Advertising We will write a custom essay sample on National Economic Policy in Australia specifically for you for only $16.05 $11/page Learn More IS equation = Y = C (Y-T)+G+I(r)+ NX(e) where Y is income, C- consumption, G, government expenditure, T- taxes, and NX(e)- representing net exports. LM equation = M/P = L (r,Y), where M/P is the money supply, L is liquidity as a function of income and interest rate. Interest Rate equation = r=r*where r is the fixed interest rate When the economy is at equilibrium, it is depicted by the diagram below: A decline in Australias terms of trade affects the economy through the IS curve. When import prices are more than export prices, the IS curve shifts inwards to the left from IS0 to IS1. Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Given that interest rates are fixed at r, the money supply in the economy reduces from LM0 to LM1. Output or income in the economy drops from Y0 to Y1, and the economy attains a new equilibrium but at a reduced level of output. These changes affect several macroeconomic variables: Australias Gross Domestic Product declines because the inward shift of the goods market (IS curve) implies reduced demand. Consumption, investment, government expenditure and net exports all decline. In addition, Australia is likely to suffer from unfavorable balance of payments. This is because more of the countrys exports will be required to purchase a given volume of imports. Similarly, as the country’s GDP declines, investments in the economy are discouraged resulting into slow economic growth and high unemployment rate. Furthermore, a decline in the terms of trade is equally likely to lead into inflation in the Australian economy. From the figure above, the inward shift in the IS curve forces t he government to pursue a contractionary monetary policy. Consequently, the amount of money in circulation is reduced. This adversely affects the economy as banks resort to tighten their lending policies. This further discourages investment by firms and households worsening the unemployment problem and slowing economic growth. The changes equally affect Australias real exchange rate. The fact that Australia’s exports can purchase few of its imports implies that its exports are cheaper. This equally indicates that the Australian dollar is weak compared to foreign currencies. Foreign countries will require less of their currency to purchase Australian dollars. However, this impacts negatively on the domestic importers. Importers must have more Australian dollars in order to purchase a given volume of foreign currency before importing products and services from those countries. Similarly, Australia will suffer from foreign exchange deficits. Given the unfavorable terms of trade, Australia will be using more foreign exchange to purchase a given volume of imports. However, with low prices for domestic products and services in the international market, the foreign exchange received from exports will be the less than the foreign exchange used to imports goods and services. Implications for Monetary and Fiscal Policy of the Decline in the Terms of Trade As already noted, a decline in a countrys terms of trade is equivalent to an increase in the price of imports relative to exports. If Australias export prices decline relative to its imports, the country will not only have a low standard of living, but will also have less ability to purchase imports. A prolonged deterioration in terms of trade can result in low GDP and poor living standards. Because of this, the objective of monetary and fiscal policy is to stimulate aggregate demand and increase exports Expansionary Fiscal Policy To stimulate demand, the government will pursue an expansionary fiscal policy by i ncreasing government expenditure and reducing taxes. From the aggregate demand function, an increase in government expenditure G will increase aggregate demand and increase economic growth. AD= C+G+I + (X-M) With a decline interms of trade, then economys real GDP falls to a low level Y0. At this level investments, consumption and output are low. The economy suffers from high unemployment. The government can correct this using fiscal policy by increasing its expenditure and reducing taxes. This shifts the aggregate demand curve outwards to the right from AD0 to AD1, income is increased from the original Y0 to Y1. The government can inject more money into the economy by investing in infrastructure and productive activities to boost output and growth. Through a reduction in taxes, some of the goods that were initially imported can be produced in the domestic economy thereby improving the countrys GDP by increasing income, output and employment. Expansionary Monetary Policy With the l ow output arising from the decline in terms of trade, the government through the central can pursue an expansionary monetary policy. The IS-LM diagram above indicates the economic changes arising from the increase in money supply. Initially, the economy is at equilibrium with output Y0 and interest rate i0. However, owing to the deteriorating terms of trade, output Y0 is too low and is characterized by high unemployment, inadequate foreign exchange reserves, high import prices and low export prices (Reserve Bank of Australia 2013, p. 1). When the central bank increases money supply, the LM curve shifts outwards to the right from LM to LM, equilibrium output increases from the initial Y0 to Y1. The central bank can increase money supply by using three tools open market operation, discount rate and reserve requirements (The Australian, 2012). All the three tools whether used together or separately will have the effect of increasing the amount of money circulating within Australias eco nomy and bring down interest rates. The low interest rates coupled with extra supply of money will stimulate Australias economy by encouraging additional expenditures on total production, in particular investment and consumption expenditures. With the increased aggregate production, the country uses more resources, creates more jobs and unemployment declines (Lowe 2012, p. 8). This is the stimulation the Australian economy needs in a situation of deteriorating terms of trade with high rates of unemployment. Given that the effects of monetary policy on the economy are not usually immediate, it is recommended that the policy should be implemented immediately there are signs of declining terms of trade. In conclusion the volatility in Australias terms of trade over the past decade has been a direct result of various factors both internal and external. These include global events; drop in commodity prices in the international market and the move by Australia to diversify its exports. Li st of References Austrade 2012, Latest from Austrade: China now Australia’s top destination for services exports – Austrade. Web. Gregory, RG 2011, Then and Now: Reflections on Two Australian Mining Booms, Centre for Strategic Economic Studies, Victoria University, Melbourne. Gruen, D 2011, The Macroeconomic and Structural Implications of a Once-in-a-Lifetime Boom in the Terms of Trade, Address to the Australian Business Economists, Sydney. Lowe, P 2012, The Changing Structure of the Australian Economy and Monetary Policy, Address to the Australian Industry Group 12th Annual Economic Forum, Sydney. Reserve Bank of Australia, 2013, Monetary Policy. Web. The Australian, 2012, Trade deficit widens as softer commodity prices hit exports. Web. Valadkhani, A, Layton, P Karunaratne, D 2005, ‘Sources of volatility in Australia’s export prices: evidence from ARCH and GARCH modeling’, Global Business and Economics Review, vol. 7, no. 4, pp. 295-310. This essay on National Economic Policy in Australia was written and submitted by user Yoselin Gill to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Making the right choice Essay Example

Making the right choice Essay Example Making the right choice Paper Making the right choice Paper I believe the research was valid, based on the answers from certain questions; although it lacked clarity in the hypothesis and vagueness in the questions asked. Despite lack of clarity in some questions, others were very direct and gave clear answers. A number stated that cost would influence their decision to undertake counselling, others said that race would not influence them but gender would.  Advantage: Brought about direct and clear responses  Disadvantage: Sample group to small to reflect wider perspective Reliability:  I believe the answers are reliable for the sample group selected. The questions were reliable in terms of being simple and not over complicated. The outcomes shown in graph gave a fair indication of perception of counselling at that given time. If I had made comparisons with other research methods such as literature interviews or surveys, it may have highlighted a different view.  Advantage: This was a good choice of research method for topic.  Disadvantage: Lack of comparison may change results on outcome. Relevance: Initially, some questions seemed relevant such as age, gender, race of respondents. However, it may not have been politically correct to request this information if the outcome did not show how it was to be used. Other factors may contribute to perception of counselling service that were not asked such as, economic factors / wage, class / geography, disability, status. If I were to do this again I would rethink why I requested this information and made sure they were relevant in the outcome of the results if requested, Alternatively, I could simply not ask for this information, even though I believe that it is relevant.  Advantage: Information may be vital in the outcome of findings  Disadvantage: Not relevant if not used, difficult to collate under Equality or Discrimination Acts. Bias:  The questions were closed therefore not giving the respondent leverage to express views. Use of language such a therapeutic is not helpful and may constitute a loaded question. If the client states they have never undertaken counselling how would they know if it is therapeutic? This may have been dealt with differently if conducted in interview method.  Advantage: Good learning outcome and evaluation for future research. Disadvantage: May have contributed to final results  ETHICAL AND VALUE ISSUES:  Questionnaires are easy to administer confidentially. Often confidentiality is the necessary to ensure participants will respond honestly if at all. Examples of such cases would include studies that need to ask embarrassing questions about private or personal behaviour. (Internet.2)  http://schatz.sju.edu/methods/sampling/intro.html  Confidentiality: Respondents were not required to give information that would personally identify them. Questionnaires were given out safely were there little or no suspicions to answers were raised. All replies were collated and keep safe.  Advantage: Privacy and safety of personal information a paramount concern.  Disadvantage: None identified.  Artificiality:  Within this research I did not identify anything that may be construed as artificiality. I assume the reason for this is based on the question being about counselling as a profession and not personalising or criticising respondent as a user of the service. The questions gave little reason for respondent to become defensive; it was also given and received collectively as opposed to privately. Therefore the permission to be honest and direct was available. However, if this research had been undertaken via interview techniques or observation it may have had a different response.  Advantages: Freedom of choice,  Disadvantage: Limited and unclear questions caused ambiguity, no room for alternative answers such as not applicable or maybe / sometimes.  Choice in participation:  Questionnaires were distributed randomly, or in large groups such as class groups. A brief was given regarding the purpose of the research and no pressure placed on participation. The same can be said to respondents on an individual basis and choice given to participate or abstain. Participants were not given enough choices for an answer; it was either yes or no. Options such as not applicable, maybe or sometimes could have been added.  Advantage: Respondents were given the choice and were under no pressure to complete questionnaire  Disadvantage: None identified.  3. Evaluate the research methods using a piece of research in counselling  Title: Brief dynamic counselling:  Making the right choice  In reading and evaluating the above article I was very impressed with the hypothesis. The background and introduction made it clear to why it was deemed to be good material for research. Unlike my research the writer had given much thought to the subject and examining its implications on counselling practice. The methodology used in this research seems to be Case Studies and Literature review. In view of the topic my thoughts were this may not have been the best method. Richards gave two good examples from both sides of the argument. However, the major context of the research seems to be bias against Brief Therapy / Dynamic counselling with negative undertones / prompts to discourage the reader from considering this could possibly be advantageous for the client.  The person carrying out a research study may be highly  committed and passionate about the project and  therefore less open to seeing potential problems  (McLeod. 2003 pg 168 -169.) The research speaks of society and organisations emphasising lack of time and funding. Although Richards does acknowledge there is a place for this therapy in schools. This highlights that the article was published in 1999 and some articles may take up to two years to be published. Many of the quotes are also almost ten or more years old. Today as I write this society is moving even faster and almost anything can be achieved within an hour or less. Clients still arrive and ask how many sessions they are expected to attend before being given the all clear. It was interesting to see finance and money are still a consideration in counselling, and that agencies, organisations and private counsellors are seeking ways of making counselling affordable.  Ethically, I totally agree that restraints placed on practitioners including strict numbers of sessions or any other description may harm the clients, whether it is financial, lack of resources, poor assessment, inadequate training, and an inexperienced or incompetent counsellor. All these and more can cause more damage than good to the client and profession. The only exception to this would be in of CBT (Cognitive Behavioural Therapy) where the model may specify that target to be met by a certain number of sessions, and the clients agree to this contract,  Otherwise, ethically after assessment clients should be informed that further sessions may be required outside the allocated time or through private therapy.

Financial Analysis - residual earnings Essay Example | Topics and Well Written Essays - 250 words

Financial Analysis - residual earnings - Essay Example Pinto (2010) explains that one of the drivers of residual earnings is book value growth. Residual earnings depend on the growth in the value of the invested assets in the business. When investment is made in a business, the invested resources then start to produce earnings. With a well growing business, the investments will produce more earnings which then lead to the increased book value of the capital beyond the expected returns (Wahlen, et al 2010). This then delivers the residual earnings. Return on common equity also is a driver of residual returns. The general returns that a business earns excess of the shareholders equity is what defines the residual earnings (Easton, 2009). When these returns therefore exceed the returns on capital that the business set to achieve, it delivers residual earnings. However, critical analysis shows that return on capital is the same as residual earnings. Diebold, F. X., Doherty, N. A., & Herring, R. 2012. The known, the unknown, and the unknowable in financial risk management: Measurement and theory advancing practice. Princeton, N.J: Princeton University

Genetic Engineering Process Essay Example | Topics and Well Written Essays - 750 words

Genetic Engineering Process - Essay Example An example is cry 1Ab which is a gene that codes certain insecticidal proteins in bacillius thiurengesis, which is a soil bacterium (University of Nebraska 2013). Agorabacterium tumefaciens is another example. 2. Gene insertion An essential component is plasmids, which are minute, self-replicating, circular DNA strands in the bacterial cells. Plasmids are easy to manipulate since they carry few genes and therefore provides routes for new gene introduction to cells (Wolfe 2013). Plasmids are used as the transfer channels. For agorabacterium tumefaciens, which is also a soil bacterium, genes are inserted using recombinant DNA methods. The bacterium possesses a plasmid (Ti). T DNA segment of the bacterium DNA carry genes that lead to tumour formation when it integrates in the maize DNA. However, manipulation of the genes by inserting new ones causes a disruption that makes the maize resistant to frost diseases and herbicides. Restriction endonuclease cleave the Ti plasmid exposing it to introduction of a foreign DNA from another source cleaved by the same enzyme. The genes are connected to the ends of the plasmids; thereafter ligation enzymes seal the ends and reform a structured DNA circle. The manipulated plasmid is then replaced into the bacterium. Antibiotic resistant marker genes must be included in the plasmids; the essence of the marker gene is to provide identification of cells containing the manipulated plasmids. Polymerase chain reaction takes over at this point, where genes are produced en masse. 3. Transformation Introducing plasmids into the organism of interest is through transformation. A few techniques can be employeds for transformation. However, the general concept involves attachment of A. Tumefasciencs to the organism’s cell, in this context the maize maize cell, and transferring a copy of the modified plasmid into the cell. Other methods of transformation other than use of A. Tumefasciens include particle bombardment and protoplast tran sformation. In particle bombardment, tiny tungsten beads with DNA coating of desired traits are shot into small fragments of maize cells that combine and integrate in to the maizes genome. The disadvantage of this method is that it results in unpredictable and unstable gene expression due to multiple copies of the introduced gene. Protoplasm transformation involves enzyme treatment of cell by stripping cell of their cell walls to form protoplast. Osmotic stress is induced to the protoplast in order to take up DNA in the protoplast’s surrounding (GMO education Network n.d). Inducing osmotic stress is by administering electrical shocks to the protoplast or by chemical treatment using polyethylene glycol. The protoplasts are thereafter regenerated into maizes using hormones. The problem with this method is that it is tedious and challenging. However, protoplasm transformation gives accurate and precise outcomes. 4. Selection of modified cells The selection process involves ident ification of cells that have obtained the manipulated plasmids into their genome. In genetic modified food industry, it is advisable to use the marker less insertion system to avoid the risk of marker gene expression in the maize. Typically, marker less transgenic involves screening numerous progeny

The Role of Management in Entrepreneurship Assignment

The Role of Management in Entrepreneurship - Assignment Example The manager has to compare the input to the organizational goals and ensure that they can be attained using the resources in the organization. Planning ensures that the managers are prepared for the challenges that may affect the organization during its operations (Pride, Hughes & Kapoor, 2012). Assigning tasks to the departments in the organization is referred to as organizing. Organizing ensures that the plans made by the management translate into actions. The tasks assigned to the department should be consistent with the set goals. The success of individual departments contributes to the overall achievement of the organizational goal. Motivation is another managerial function in the organization. A manager should ensure that his workers are motivated to ensure that they work towards achieving organizational goals. The final managerial function is control. The manager has to control the use of resources to ensure that organizational goals are prioritized. The manager should evaluate the performance of the organization on previous and current projects. The manager has to ensure that the organization's performance improves through control of all ongoing processes in the organization. Management dates back to historic times with the term being used in industries, and control of manual laborers. The term has evolved with the improvement of technology in the modern world. Management theory is crucial to the organization as it improves the productivity of the workers. The organization whose staff understands management theory is competitive compared to other organization in the industry.

John Locke Two Treatises Of Government Philosophy Essay

John Locke Two Treatises Of Government Philosophy Essay The easy will endeavour to assess the cogency of the justifications for state power put forward by John Locke in his Two Treatises of Government. Mainly the second Treaty emphasises on the inter-relation of property and formation of Government. Locke has provided a mixed conception of property throughout his both treaties. In his social contract theory Locke made property rights central to the formation and development of civil society and democratic governance. Lockes argument was based on the natural law and where natural law fell short he relied on the Christianity. Locke believed that laws can only be legitimate if they are to promote the common good and that people will as a group do the right thing. According to Locke the reason for people to come under the governmental control was mainly to protect their property. John Locke in his Two Treatises of Government has not given any clear definition of property and rather given a double meaning which refers to an economic right and a quality of being. Professor Reno, B Jeffrey  [2]  pointed out that Locke offers two revealing statements regarding the nature of property. In the First Treatise, he notes, Adams property in the creatures was founded upon the right he had to make use of those things that were necessary or useful to his being  [3]  . In the Second Treatise, Locke says that property is to be used to the best advantage of life and convenience  [4]  . It is significant that in the first statement Locke draws a distinction between property as necessary or useful whereas in the second he creates a union between property existing for life and convenience. Life and convenience are not rival goals such that one chooses to advance one or the other. Rather, echoing the empirical interpretation of the Law of Nature, one seeks preservatio n at all times and comfort when it is available. It is, however, possible to differentiate between goods that serve the advantage of life itselfnecessitiesand goods that serve the advantage of conveniencethe useful. The need for property to fit such broad characteristics helps to make sense of Lockes strange way of explaining its origin and purpose. Locke in his Second Treatises argues that property rights are justified because humans have a right to their preservation and thus have a right to meat and drink and such things that Nature affords for their subsistence.  [5]  Locke further asserts in Section 27 that everyman has a property in his own person[and that]the labour of his body and the work of his hands are properly his. According to Locke, when a person removes something from the state of nature, he has mixed his labour with it, and joined to it something that is his own, and thereby makes it his property. Because labour is the unquestionable property of the labourer, Locke believes that no man but he can have a right to what [his labour] is once joined to. Peter Laslett  [6]  noted that this famous passage, which almost contradicts Lockes first principle that men belong to God, not themselves, together with the general claim that tis Labour indeed that put the difference of value on everything  [7]  are perh aps the most influential statements he ever made. In this section we find a new element labour to his property theory. What follows from this section is that a persons labour and its product are inseparable, and hence ownership of one can be secured only by owning the other. Hence, if a person is to own his body and thus its labour, he must also own what he joins his labour with namely, the product of his labour. Herman T Tavani  [8]  explains that Locke After providing an argument for what is required in the just appropriation of the various kinds of objects that reside in the commons, such as acorns and apples, Locke proceeds to explain how one can justly appropriate portions of the commons itself. He states: As much land as a man tills, plants, improves, cultivates, and can use the product of, so much is his property. He by his labour does, as it were, enclose it from the common  [9]  . Of course, Locke does not believe that ones right to appropriate objects or to enclos e a section of the common is absolute i.e., without qualifications. For example, he imposes certain conditions and constraints as part of his justification for appropriation. One such constraint is sometimes described as the no-waste condition. According to Locke, one may take from the commons only as much as any one can make use of to the advantage of life before it spoils  [10]  . John Willinksy  [11]  notes that Locke built his argument on behalf of considerable differences in the property holdings among people in two ways: first, by giving due weight to the productive value of labour, and then by allowing for the authority of majority consent to establish alternative economic arrangements. Yet it is important to note that in what follows, Locke keeps the collective principle of a world held in common in balance with notions of private property. It was evident from the Lockes social contract that the notion of labour is central to his property theory. But in Chapter V of Second Treatise illustrate that several conditions need to be taken into account in justifying property rights.  [12]  Locke had insisted that whenever something is appropriated from the commons, enough and as good should be left for others who also wish to appropriate. Thus, Locke never assumed that the mere mixing of ones labour with something constitutes a sufficient condition for an individuals right to claim ownership of that thing.  [13]   Peter Laslett  [14]  has pointed out that Lockes account of the origin of property cannot be intended to cover all meaning of the word. For it is not defined as material possessions, nor in units of the conveniences or necessities of life but much more generally as Lives, Liberties and Estates, which I call by the general name, Property  [15]  Laslett further argues that for property to Locke seems to symbolize rights in their concrete form, or perhaps rather to provide tangible subject of an individuals powers and attitudes.  [16]   Lockes First Treatises lays foundation on the concept of property in Section 86 as the right Adams had to make use of those things that were necessary or useful to his being. In the Second Treatises in Section 26 Locke used the notion to the best advantage of life and convenience. Professor Reno  [17]  noted that in the first statement Locke draws a distinction between property as necessary or useful whereas in the second he creates a union between property existing for life and convenience. Life and convenience are not rival goals such that one chooses to advance one or the other. Rather, echoing the empirical interpretation of the Law of Nature, one seeks preservation at all times and comfort when it is available. It is, however, possible to differentiate between goods that serve the advantage of life itself-necessities-and goods that serve the advantage of conveniencethe useful. What follows from the plain reading of Section 86 of Second Treatises is that property, both in the narrow and in the extended sense, is insufficiently protected and inadequately regulated in the state of nature and this is the critical inconvenience which induces men to enter into Society to make one People, one Body Politick under one Supreme Government.. by setting up a Judge on Earth with Authority to determine all Controversies.  [18]   Lockes theory of uniting Men under one Society was based on consent as it was in case of acquisition of property. Critiques like Ashcraft, Dunn and many others argued that in fact the reason was based on ingenuity and force rather than consent. Locke believes that it is consent alone that makes civil society and such society requires political rights and obligations.  [19]  The political power that Locke refers to is the power to make law for that society but it must all be for the good of society.  [20]   It can be argued that governments were originally instituted by force without any agreement, however Locke explicitly says that he must provide an alternative to the view that all governments in the world is the product of force and violence. He admits that some governments are instituted by force and violence but if that were the only form of government he would be denying the distinction between legitimate and illegitimate governments. According to Locke a legitimate government is instituted by the consent of the people being governed.  [21]   Grant  [22]  says that the establishment of government is a two-step approach. Universal consent is necessary to form a political community and consent to join a community once given is binding and cannot be withdrawn. She goes on to ask who rules and the answer is determined by majority rule. Universal consent is required to establish the political community and majority consent to the answer who is to rule that community.  [23]   Radcliffe  [24]  says that David Hume purified Lockes empiricism by rejecting all supernatural grounds for philosophical principles. He set aside Lockes idea of theological basis for his views and relied solely on evidence that sense experience provides. He asked whether history provides any basis for thinking that political power attains legitimacy through a social contract.  [25]  Hume concluded that history does not provide any basis for thinking that political power arose through the social contract. Radcliffe further shows that Hume uncovered another weakness in Lockes social theory. The theory bases the moral obligation to obey civil government on the mutual consent and promise to be governed. However the contract does not offer any basis for the moral obligation to keep such promise.  [26]   The political obligation of obedience is on the same moral footing as the obligation to keep a promise. Hume argues that one cannot be based on the other and if the one is sanctioned then the other will also be sanctioned. However this creates its own problem that if there is no moral basis for the duty of fidelity to promises, the contract theory will not provide any moral basis for duties of political obedience.  [27]   If there is a moral basis for the duty of fidelity to promises then that duty can also form the basis for political obedience and the social contract is unnecessary.  [28]  Hume further argues that if all laws come from Gods divine will why not at the same time say that governments are established directly by Gods will.  [29]   Locke in his Second Treatise,  [30]  gradually unfolded the government and its duties to the people. John Willinksy  [31]  rightly observed that Locke was to provide as firm a basis as anyone could imagine for the closely related growth of the empirical sciences, the rise of industrial capitalism, and the gradual unfurling of democratic government. What was the justification for Governmental control over people? Locke in his Two Treatises of Government depicted a clear picture of the state of nature. Locke holds that Men choose to leave the state of nature and establish a government. They do this because the enjoyment of their life, health and liberty in the state of nature is uncertain and continuously exposed to the invasion by others.  [32]  Therefore man in his natural state before money lived in a state of nature where each was producing only what they needed. The value of the goods they needed was determined by the value that the parties placed on the goods being bartered. As goods were perishable man did not retain more than what he needed to survive on. With the advent of money, man was able to hoard more money than he needed for his requirements. Families increased and industry started to retain more than what they required. This increased the inconveniencies to persons. To avoid the increase in quarrels which may lead to war, man agreed on laws to govern their relations and to form a government. King  [33]  argues that the consent to use money has one very important feature that may have been overlooked by Locke. The use of money allows a more complete fulfilment of natural law by promoting preservation and convenience. As it transcends the scarcity put forward by Locke it permits individuals to appropriate more than what they need. Once they have done so they will sell the excess and so assist in providing for the needs of others. King further says that since those who have more can make money they have an incentive to fulfil others needs and this in turn promotes peace, preservation and convenience.  [34]  Since men are rational the existence of money creates the possibility of greater expressions of rational behaviour. King therefore argues that by overcoming the scarcity limits, the possibility for a more complete fulfilment of the law of nature is created as it allows men to engage in rational activity and such activity results in increased quality of life for a ll.  [35]   Laslett pointed out that Lockes doctrine of property was incomplete, not a little confused and inadequate to the problem as it has been analysed since his day, lacking humanity and the sense of social co-operation to be found in the canonists who had proceeded him.  [36]  Laslett argued that, contrary to the traditional view that Locke had composed the Two Treatises in order to legitimize the 1688 Glorious Revolution, they were actually written surrounding the Exclusion Crisis a decade earlier. Conclusion Hobbes, Locke and Rousseau all stressed that the only way that the state can be justified is to show that everyone would in some way consent to it. They were all thus social contract theorists. The social contract theory supposed conception of political justice and obligation that is based on voluntary consent by the people. That which the people choose to agree to is just and is according to their will. Kant says that people have a duty to agree to act according to the idea of the original contract. There is the problem of justification and it is agreed that the way to look at the justification was by looking at the issue heuristically. As pointed out above Rawl has revived the social contract theory. The concept of property has been changed since Locke but the social contract theory is still applicable to the modern understanding of property. There have been numerous attempts by the academics and modern social theorists to relate Lockes social contract theory with the intellectual property rights and so on. Word Count: 2492 words.

Multicultural Social Studies Essay -- Education

Multicultural Social Studies More now than ever before in the educational history of our nation has multicultural education become important. Due to the ever increasing diversity in our nation, the global economy, and the mobility of our work force, diversity in the classroom is affecting our classrooms. With such a diverse student population teachers must understand that each student will bring his own background knowledge and experience into the learning environment. The task that is presented to teachers is to prepare the students to understand and interact with all the different cultures that are present or that the student may come into contact with, while at the same time teach them content which does not offend a student’s cultural identity. Why is multicultural education important? â€Å"Curriculum Standards for Social Studies (NCSS,1994b) endorses the belief that students should be helped to construct a pluralist perspective based on diversity. This perspective respects differences of opinion and preference, race, religion, gender, class, ethnicity, and culture in general.† (Hass & Sunal, 2011, p. 304) With the ever increasing diversity found within this country, and the interdependency between different cultures on a world-wide platform it is important for our students to not only accept these differences, but to also understand the differences. Dr. Geneva Gay states: Multicultural education can ease these tensions by teaching skills in cross- cultural communication, interpersonal relations, perspective taking, con- textual analysis, understanding alternative points of view and frames of reference, and analyzing how cultural conditions affect values, attitudes, beliefs, preferences, expectations, and behaviors. .. .../pdf/session3/3.Multiculturalism.pdf Banks, J. (2008). Teaching Strategies for ethnic studies. (8th Ed.). Boston: Pearson. Cushner, K., McClelland, A., & Safford, P. (1992). Human Diversity in Education. New York: McGraw-Hill. Fry, T. S. (2000). Muticultural Perspectives Help by Preservice Social Studies Teachers. The Journal of Critical Inquiry Into curriculum and Instruction . Gay, G. P. (1994). A Synthesis of Scholorship in Muticultural Education. Retrieved May 5, 2012, from North Central Regional Educational Laboratory: http://www.ncrel.org/sdrs/areas/issues/educatrs/leadrshp/le0gay.htm Hass, M. E., & Sunal, C. S. (2011). Social Studies for the Elementary and Middle Grades. Boston: Pearson. Kostelink, M., Whiren, A., Soderman, A. S., & Gregory, K. (2002). Guiding children's social development: Theory to practice. Albany, NY: Thomson Delmar.