From Leninism to Stalinism: A Logical Progression

The question of whether or not Stalinism was a logical continuation of Leninism is a difficult one. Stalinism did take significantly more drastic measures than Leninism did. There were differences in policy. But in spite of these, Stalinism still found its basis in Leninism. Even Trotsky, a friend of Lenin and a staunch opponent of Stalin, grudgingly admits that â€Å"Stalinism did issue from Bolshevism† (Trotsky). Stalin's policy of socialism in one country, his use of terror to eliminate opposition, and his suppression of democracy and the soviets were all characteristics of Lenin well before they were characteristic of Stalin. Although some of Stalin's policies were different from those of Lenin, what difference Stalinism did show from Leninism were either policies which Lenin had called for but never put into action, or logical continuations of Lenin's original principles, but modified to suit the demands of the time. One of Stalin's main focuses was on the concept of â€Å"socialism in one country† – that is, the focus on the betterment exclusively of his own country rather than on the international communist revolution. â€Å"Socialism in one country† began with Lenin. In 1918 Lenin signed the Treaty of Brest-Livtosk, which pulled Russia out of WW1 and surrendered much of the Ukraine to Austria-Hungarian forces (â€Å"How Lenin Led to Stalin†). At this time, there was a revolutionary movement in the Ukraine composed of peasants and workers known as the Makhnovist movement. This group needed only the support of Lenin and Russia to launch their own socialist revolution. However, they were not given this support (â€Å"How Lenin Led to Stalin†). Clearly, Lenin's focus was on the well-being of Russia rather than the International Communist Movement. He was focused on Socialism in One Country. Lenin's actions, compromising his political ideals for the sake of peace, would later be echoed by Stalin when Stalin signed a non-aggression pact with Adolf Hitler on August 23, 1939. In addition to a focus on socialism only within his own country, Stalin also focused on a concentration of governmental control of industry and agriculture. This policy, originated by Lenin under the moniker of state capitalism, was a clearly established goal of Leninism well before Stalin implemented it. Lenin said that â€Å"Socialism isnothing but state capitalist monopoly made to benefit the whole people† (â€Å"How Lenin Led to Stalin†). It is clear that his idea of socialism was one of governmental economic control. Moreover, Lenin fully intended for this plan to be implemented. He said that â€Å"If we introduced state capitalism in approximately 6 months' time we would achieve a great success† (â€Å"How Lenin Led to Stalin†). As the government gained more and more control over the economy, Lenin felt it necessary to defend his actions. He published an article in April of 1918 in which he stated that â€Å"Unquestioning submission to a single will is absolutely necessary for the success of the labor process†¦ the revolution demands, in the interests of socialism, that the masses unquestioningly obey the single will of the leaders of the labor process† (â€Å"How Lenin Led to Stalin†). In addition to demonstrating the Leninist ideal of state capitalism, it also shows that Lenin viewed absolute governmental authority as necessary, a policy that would be further instituted during the totalitarian rule of Stalin. One aspect of Lenin's state capitalism was the forced collectivization of agriculture. In article six of his â€Å"April Theses,† Lenin called for â€Å"Nationalization of all lands in the country, and management of such lands by local Soviets of Agricultural Laborers' and Peasants' Deputies† (Russian History 1905-30†³). In 1929, when Stalin forced collectivization onto the agricultural workers, he was simply putting Lenin's concepts into action. Lenin had had the original idea, and had felt it was a necessary action, but he had been unable to put his plan fully into effect. Stalin was able to take a previously incompletely implemented Leninist policy and put it into action. In their attempts to bring the workers under governmental control, Leninists were willing to take drastic action. In May of 1918, a new decree stated that only one third of industrial management personnel could be elected, the rest being appointed to their positions. In April of 1920, Trotsky stated that â€Å"Deserters from labor ought to be formed into punitive battalions or put into concentration camps† (â€Å"How Lenin Led to Stalin†). Arguments have been raised which state that Lenin's New Economic Policy is a demonstration of the fact that Leninism's goal was not one of total governmental control. However, the New Economic Policy was only instituted by Lenin when it became absolutely necessary for the survival of Russia, and even then it was only intended to be a temporary measure before returning to state capitalism. Despite the temporary nature of the New Economic Policy, it was still viewed by many leading members of the Communist party as being too drastic a departure from Leninist doctrine. When Stalin abandoned the New Economic Policy, he was not abandoning a part of Leninism. Rather, he was banning a policy that even Lenin himself had not intended to be permanent, and that many people viewed as being a policy contrary to the aims of Leninism (Wood, p. 23-26). Stalin was also characterized by his strong suppression of opposition, which is once again a Leninist trait. A decree of the Sovnarkom on December 20, 1917 called for the creation of a commission â€Å"to persecute and break up all acts of counter-revolution and sabotage all over Russia, no matter what their origin† (â€Å"Russian History 1905-30†). The decree further read that â€Å"measures [to be taken against these counter-revolutionaries are] confiscation, confinement, deprivation of [food] cards, publication of the names of the enemies of the people, etc† (â€Å"Russian History 1905-30†). While these actions were admittedly not as drastic as Stalin's, they do represent a strong, forceful suppression of opposition. In addition, Stalin was in power after these measures had already proven futile. Given the ineffectiveness of these methods, a logical continuation of these policies would have been to increase the severity of the suppression. In addition, other actions taken by Leninism were far more drastic. In a Cheka raid in Moscow in April 1918, 26 Anarchist centers were raided, killing or injuring 40 Anarchists and imprisoning over 500 more (â€Å"How Lenin Led to Stalin†). Another feature common to both Stalin and Lenin was their attempts to eliminate any democratic or representative forms of government. This too was a continuation of a long-standing Leninist policy well before Stalin was in power. Starting in 1918, in elections for factory committees, an approved list of candidates was created beforehand, and voting was done by a show of hands while a member of the Communist cell read the names and armed Communist guards watched on. Voicing opposition to the proposed candidates would result in wage cuts (â€Å"How Lenin Led to Stalin†). Lenin's suppressions were not limited to non-communists. As Stalin would later do, Lenin also worked to eliminate any possible sources of dissention within the Communist party. In 1918 there was a faction within the party that was critical of the new policy of Taylorism, a system used to measure the outputs of the workers in the country. This faction was centered around the journal Kommunist. At a Leningrad party conference, the majority supported Lenin's demand â€Å"that the adherents of Kommunist cease their separate organizational existence† (â€Å"How Lenin Led to Stalin†). Three years later, the 1921 party congress issued a ban on all factions within the Communist party. Speaking regarding one of these factions, the Workers Opposition, Trotsky said they had â€Å"placed the workers right to elect representatives above the party. As if the party were not entitled to assert its dictatorship even if that dictatorship temporarily clashed with the passing moods of the workers democracy† (â€Å"How Lenin Led to Stalin†). We can see the dark motivations behind Leninism's banning of factions: to keep the democracy from interfering with the dictatorship. Well before Stalin was using his power to eliminate any who might oppose him, Lenin was carefully and thoroughly removing the opponents to his power. In the trade union congress of April 1920, Lenin stated that in 1918 he had â€Å"pointed out the necessity of recognizing the dictatorial authority of single individuals for the purpose of carrying out the soviet idea† (â€Å"How Lenin Led to Stalin†). This concept of a single absolute ruler that Lenin felt was so necessary was to become one of the points for which Stalin was later criticized. In setting himself up as an absolute dictator, Stalin was merely following what Lenin had said was necessary. Another aspect of Stalin's suppression of opposition was his violent suppression of workers revolts and the soviets. Stalinism crushed revolts in East Berlin in 1953, in Hungary in 1956, and in Czechoslovakia in 1968, as well as many other, smaller revolts (â€Å"How Lenin Led to Stalin†). This policy would seem to contradict the Leninist ideal, in which the government was built for the workers, and a revolt of the workers would have been something that occurred only as a step towards a communist society. However, we can find this policy originating from Leninism. The Leninist government itself often showed strong opposition to attempts made by the workers to increase their power. The first All-Russian Congress of Soviets, held in June of 1917, stated that giving full power to the soviets would have â€Å"greatly weakened and threatened the revolution† (â€Å"Russian History 1905-30†). In 1921, at the Kronstadt naval base, workers attempted to elect a soviet. They also issued a declaration which called for the reestablishment of the democratic soviets, and an end to censorship of speech and press. These actions were supported by the workers, the sailors, and many members of the Bolshevik party. However, official Leninist forces stormed the base, killing many of the rebels who were unable to escape. Leninism had demonstrated that it was opposed to a representative government designed with the wants of the workers in mind. All of the defining policies of Stalinism were either policies that had originally being instituted by Leninism, policies called for by Leninism but not put into action until Stalinism, or else Leninist policies modified to fit the needs of the situation. Stalinism was a logical continuation of Leninism.

Color of Law Essay

As a Legal Management Student who will soon be proceeding to Law, I have learn and realized so many things about being a lawyer when I finished reading the Color of Law by Mark Gimenez. When I was still a little child my dream was to become best lawyer so I can help those unfortunate people. I always thought being a lawyer is about helping, defending, and giving justice to my fellow Filipinos. I also thought that when I become a lawyer I can have lots of money to provide my needs and as to my family. I also thought that those lawyers were the best because they gamble their lives every day just to defend the citizens of its country. Then I have realized that it is just all in my imagination because in the real world lawyers do not usually do everything right, sometimes it is all lies in my eyes. â€Å"Scotty, the color of law isn’t black-and-white, it’s green! The rule of law is money—money rules! Money makes the law and the law protects the money! And lawyers protect the people with money!† –Dan Ford With this line it made me realize that for some lawyers they do not put their hearts in protecting the law but their ambition and love for money. It also made me realize that the codes and rules made in black-and-white does not already governs the law and the people but it is the money that makes the world go round. I have also realized that some lawyer’s cheat under the law, they do not even care about giving justice to the unfortunate or to the innocent but they make the wrong right in the eyes of others. Lastly, I have realized that when money is involved justice is not followed by its right purpose. But what I have learned from this statement is that when I become a lawyer in the future I should fight for the right thing and not blind myself with the wrong one for money. I have also learned that we are the future generations and we should not be poisoned by what is happening now but rather should make a change for the better of the society. In the story I have seen that Scott and his other colleague’s works in a best and the most famous Law Firm. I have just realized that they are working in a best and the most famous Law Firm is because they have worked hard in attaining their college degree. I have also realized that they are highly paid by the firm because they belong to the top students of the best university in Dallas. So I have learn that if I want to be employed by the most famous law firm in the Philippines, I have to work hard to be one of the best students in my future law school. I have also learned that for me to be highly paid by my employer in the future I must be one of the bar top-notcher. Though I do not promise to be this in the future but it made me realized that trying can always be the best solution. Third, I have seen in the story that when Scott was appointed to be the lawyer of Shawanda who is a prostitute and a drug addict that he did not truly believe that she is innocent. I have realized that most of the best lawyers are not usually the best when it comes to their jobs as a lawyer because a lawyer must not judge their clients but must always put their clients to be innocent. I have learn that when a lawyer what to prove her client innocent, he must first have faith and belief of her client’s innocence from the crime. It is important because when you as her lawyer do not believe that she is innocent then she might lose her confidence and instead force to tell a lie and may commit a greater mistake. Fourth, I have also seen in the story that when Scott was about to lose everything, he did not care or think about his family or what could happen to his family. Although Scott was just being kind, he just cared for his client and even doing the right thing but for me family is the most important thing in the world. I would not want to give up everything just for my clients but instead I would fight all these circumstances just to defend my family from all of these. I have realized with this that there is no purpose of winning a case if you do not have a real and complete family to celebrate with. I have learned from this that when I become a lawyer in the future I would do everything to defend my client and do the right thing but in a right way. Fifth, I have realized from the story that they portrait or described lawyers as cheaters, dishonest, and immoral. I think that this is not a good example to those young aspiring lawyers to be. I have learned that as of today being a student aspiring to be a lawyer in the future, I would do my best to practice law in a lawful and in a moral way. I would also start to respect the law by putting God first so I would be guided on what is best way to solve without being a distraction to the society. I think that if lawyers do the right thing with good and moral intention then we could have a peaceful society and justice would be given fairly. I have learned that being a lawyer with good moral character is what a lawyer should be proud of and not the multiple numbers of cases he had won because at the end of the day people do not usually care about you but you instead could make yourself proud of what you did. I have seen that Scott did not totally believe in God’s grace on how he would handle with his life. I believe that God is the center of everything so we must put him first in everything that we do. I believe that with every profession when you just trust God, he would help you be the most successful person. I have seen from Scott’s situation that he did not trust God or pray for Shawanda’s life to be reformed but instead he judged her until the end. I have learned from it and I promised myself that when I become a lawyer I would definitely put and trust God first in every case that I would encounter. With this inspiration I would be able to abide and follow the law in a right way. â€Å"VOIR DIRE † is a legal phrase meaning â€Å"to speak the truth.† I really think that these words are the most important thing to be remembered in practicing the law. I have learned from the book that being a lawyer you must first put in mind or practice to speak the truth because as a lawyer you stand to be the leader of the law. I also think that if you speak the truth then the truth would prevail. Also speaking for the truth is a way of respecting the rules of the law and yourself. I also think that if you have this within you then you will also be spoken by the truth by others. I learned that in a court trial people do not usually want to hear the truth and just cared about winning the case but when one speaks of the truth then we would have a peace of mind, heart and a clean conscience. I believe that professors should not only teach about the subject matter but must educate their students to be a lawyer who has dignity to stand for the truth. I also believe that a parent should teach and practice their children to tell the truth because they might turn out to be lawyers in the far future. I am thankful that we were tasked to read this book because it made me realized so much about how lawyers act and deal with different cases that they had encountered. I have now learned how they worked, how they find and gather those evidences about the complainant without complicating things. I have also learned how a case works on a real court, how suspects and the witness is asked about the case. I now know how the lawyers asked each witness facts out of the blue and find out the real suspect. And because of this book I have now learn so much on how to be a better lawyer and not follow the footsteps of those lawyers who are deceitful and dishonest. Now I know how to deal with suspects that are involved in criminal cases by respecting and not judging them with what other people think of them. I have realized that I should be different to make a mark and be known to people and my clients in the future by my good moral character. I have also learned that when I become a lawyer, I would not do something deceitful, fraudulent or immoral just to win a case and make a lot of money but I would do the right thing even though I won’t be remembered from it. After reading the book I have fully made up my mind that I would be taking up law school. I promised myself to study well and make my parents proud of me. I think the book stand as an inspiration to me to become a best and better lawyer than those describe by the book. I want to be different from them because I see their life unhappy and not contented with what they have. I hate how the lawyers wanted to be the best and even more, I think it is childish because when you’re a lawyer you should be proud of what you’re capable of and make the most out of it or you should learn from every mistake you take and be better. But despite the wrong this Scott Fenney had done in the past, I still idolized him and wanted to be liked him in the future because it taught me that his intelligence got him to his dreams. Also I idolized him because he fought for the right and defended her client even if she is known to be a prostitute and a drug addict. I idolized him for turning his mistakes and made it right by leaving his past life from being one of the rich citizens of Dallas. I also idolized him for being a responsible son to his mother because although his mother was dead, he did his best to rich his mother’s dream for him to have and reach everything they had in mind together. And lastly, I want to be liked him because although he was not a very good husband to his wife because he did not stop his wife from leaving him still he was a good and the best father to his daughter Boo. He did a great job taking care of his daughter and making her part of his career by sharing how his job works. He also inspired me because he help and let Pajamae stay at their home despite the fact that she is black and a daughter of a prostitute and a drug addict. â€Å"Brilliant lawyers without rich clients are worthless to large law firms† I think this is true because being in a large law firm you have to maintain the amount of money you contribute. Also in a law firm you have partners who trust you by bringing their firms name but of course you have to pay back. This is why you owe the firm for giving you clients because clients does not directly go and see a personal lawyer but they trust a big law firm where they can be sure not to be disappointed. Also lawyers that are less brilliant and less intelligence with rich clients are still worthless or useless because all though you will still be paid large still clients would not be satisfied by the result and does want to go back. I think that being a good lawyer is better than being a rich lawyer but you suffer with your criminal or fraudulent actions. When I become a lawyer I would first make sure and review my actions before I mixed my career with money. I believe that my reputation and my character is the best thing that I can be proud even without money. I may be poor by this belief or thinking but being a lawyer can be a great value as money is. I also believe that this will find me happiness and peace but money will only buy happiness temporarily. Being a lawyer with a good heart will be permanent to my being. I know that if I would just do what a lawyer should really do I would be blessed by my clients that can see my efforts and pay me good money. With this I know that I have worked hard for that money and not earn a lot of money for something I did not do. I want be paid by my hard worked and efforts that I had invest than being paid and never returned the worth. I have also realized that maybe someday I would enter politics and maybe become one of the senators in the Philippines but that I can sure that when such time comes I would definitely return the favor for putting me in a great position. I would stay in the position as a fair senator who will do everything for the better of the society. I would not be like Senator McCall in the story that buys everything with money and expect to cover up all the bad information’s about him. In real life when we commit mistakes we should not cover it up but instead we ask for forgiveness to those who we had hurt and learn from it. People will understand and eventually forgive you in time because we all know that nobody’s perfect and we all make mistakes. I think the book is good because it made lawyers see what a true lawyer is from lawyers who are just pretending to be the best but they really are foolish. I also like how the book portrayed and describe every detail how the characters are because we learn from their characters. Just like Rebecca who is ambitious and was just after the money that Scott can offer. She does not even make Scott feel loved because she does not allow him to touch her. I did not also liked her character because she did not appreciate how Scott worked hard just to give her what she dreamed of, from a mansion, car, dresses and a great husband who loved her so much. And lastly, her character of leaving his child and husband for a golf boy who does not have anything to offer her and she is not even sure that he really love her or just for money. She was not a good example to her daughter for how she acted in times of worst which might happen and followed by her daughter. She should have said sorry to her daughter for leaving them not saying goodbye because she is better without her, a child would not understand that. Summary Scott Fenney, a successful lawyer who knows how to bend the rules, mastering the creative skills of being a lawyer and a lawyer who makes lots of money from it. He graduated as a top student from SWU. He has a wife Rebecca and a daughter named Boo. They lived happily and peacefully at a mansion at Highland Park and he drives a Ferrari. He works at the Ford Stevens Law firm and earns half and more than a million in a year. The Ford Stevens Law firm is known to be the best law firm in the state. He is a corporate lawyer who represents corporations and never represented an individual person convicted of crime. A case was broadcast to the public news about the murder of Clark McCall who is the son of the Senator Mack McCall in Dallas, Mexico. Clark McCall was found dead in his bedroom shot above his left eye and the murder was suspected to be the prostitute Shawanda Jones who has been with him on the day he died. The case does not involve Scott and his life was perfect until Judge Buford appointed to be the lawyer of Shawanda Jones to defend her from the crime of murder. He visited Shawanda from the jail and he witness that she is a heroin addict. He asked Shawanda about the crime and what happened. Shawanda told her story to Scott that she was picked up by Clark at Harry Hines Boulevard and was promised to be paid a thousand dollars to spend a night with him. They then arrived at Clark’s placed and to his bedroom but then Clark started to slap her that she in return punched him in the eye and kicked him in the balls, that he fell to the floor and she took her thousand dollars and his car keys and drove herself back to Harry Hines and left the car there. Scott asked her why was her weapon used in the crime scene, she then explained that it might have slipped from her purse when she was in a rush from getting away. Scott then asked her why she does she carry a gun in her purse, she then answered that she lives in the project where your life may be in danger anytime. Scott did not believe at that time, he believes that when your gun is the murder weapon of the crime scene then you must have done it. Dan Ford owner of the Ford Stevens Law firm is the personal lawyer of Senator McCall and was told that he should convinced his lawyer to declined or put down the case. Dan then told Scott that it would not be good for the Law Firm’s image to engage in a case of murder because they represent known associates of a corporation. He warned Scott that it would destroy his career to represent a prostitute. Scott also did not want the job appointed to him and wanted to assign another lawyer Bobby as a substitution. Bobby is a criminal defense lawyer but is not a very successful lawyer, he even envy and is jealous of Scott’s successful career because he does earn much as his friend do. He accepted the job offered to him by Scott but when they represented to court and told the judge about the substitution, Shawanda had a choice to choose which lawyer she wants to represent her and she still chose Scott. So Scott had no choice and pursued with the case despite the allegations and warnings about his career. Shawanda is a black woman who has a daughter named Pajamae who was left at their house at the projects. Scott was asked a favour from her to check on Pajamae and to bring her in jail to see her mother. The projects is a wild place in Dallas where black people lives and where troubles usually happen. He took Pajamae to her mother in jail and he was afraid to go back, so he decided to let Pajamae stay with his family in Highland Park where he has a daughter same as her age. His wife Rebecca did not like the idea about it but his daughter Boo did want to have a sister and she got along well with Pajamae. During the months before the trial, they gathered every facts and evidence to defend or prove Shawanda innocent. They investigate Clark’s background and found out that he has a history of alcohol and drug abuse, also some allegations of rape. I was brought to court about the issue then Senator McCall got angry of what Scott turned out to be. So the next following days Scott began to lose his car which was going to be taken away by the bank he owned a loan to. Then he needs to pay his bills but he was running out of cash. He was okay with losing everything because he knows he has clients who pay him half and more millions in a year but when he went to see his client Tom Dibrell, he was shocked that Tom is firing him. He blamed everything to Senator McCall but when he went to see and ask his boss Dan Ford to tell the bank to give him more time to pay his loan but Dan refused and Scott was confused but he then eventually connect the dots that Dan was the one behind all that is happening to him. Dan asked him again to put down the case but Scott refused then he was fired from the firm which was his only resort with his life problems. After losing everything he owned, his wife Rebecca left him because she cannot longer take the humiliation and what people would think. After everything that had happen he thought to himself to do his very best to prove to the public that he is a good lawyer and he can prove that despite Shawanda’s background she is innocent. They gathered name of some girls that Clark may had rape or sexual harassment but only one of the girl responded and wanted to be a witness. Hannah Steele did not file charges and damages when the time she was raped because she was scared and blackmailed by McCall so he kept quiet for a long time. They kept her named until the final trial because she is the only solution to prove that Clark was a rapist and a racist. The month of august was about to arrive but they are still not yet ready for the trial because they got only one witness and no other evidence about Shawanda’s innocent and to prove that Clark is a rapist and a racist. They had a last resort who is Carl an assistant of Bobby where he is investigating Clark’s background to gather other witness. So Scott and Bobby had only one blast who is Hannah Steele who apparently refused to speak on the day of the trial. Then Scott did not know what to do, what to ask the witness of the other side of the case just to defend Shawanda. Then right after he was losing hope on winning the case, Carl arrived at the court and presented an envelope to Scott which has the flights from Washington to Dallas on the day Clark was murdered. The trial go on, Scott asked and listened to witnesses who are police and Fbi who were present on that day. He then realized after listening and seeing all the pictures of Clark’s murdered body that Shawanda was left-handed and that Clark was shot on the upper part of his right eye. So Scott made a realization that the murderer was a right-handed which is not Shawanda. So he gathered and reviewed all the flight documents from that day and found Clark’s flight and a related person to him was on a flight just next to his scheduled flight. The person related to him on the next flight with the same destination as him was Delroy Lund who is a bodyguard of his father Senator McCall. When Delroy was asked on court about his presence on the day Clark died he said he was in Washington with the Senator. Then when Scott presented the documents and asked him why was his name registered with his driver’s license number, he answered and made an alibi that he forgot about that day. Then he accidentally denied killing Clark but called him something foolish and the court suspected that he is the murderer. The court suspected and found him guilty of killing Clark because he really has hatred and jealousy from Clark and he followed him that day because she suspected that Clark was going to do something foolish again.

Personal reflection Essay Example | Topics and Well Written Essays - 250 words - 3

Personal reflection - Essay Example Much like what Gelb has said on his book, curiosity in the first step to genius. This is a trait that I possess. I am not easily fazed when there is a daunting task ahead. Instead, I try to keep calm and assert what needs to be done and in how things must be done. It is also the multifaceted approach to personal improvement that is discussed in ‘Quantum Leadership.’ Along with the changes in our society, there must also be the simultaneous change in the approach to leadership. â€Å"The leader’s role is to engage with the unfolding reality, perceive it, note its demands and implications, translate it for others and then guide others into action to meet the demands of a reality not quite present† (Porter-OGrady & Malloch, 2010). There had been times when I had been propelled to assume the role of the leader and take charge in having to complete a task given. As a group we had been given projects where there is research that must be accomplished. While others would be satisfied on having to make do with what is at hand, I try to exhaust all the resources that are available and not pass a half-baked project. There are times when what is necessary is not easily found but it becomes even more of an accomplishment when the same is done. Trying out new things is another part of leadership that I think highlight one’s capability. Instead of constantly applying the same ideas, it is best to break the norm in order to test the waters to improve. There are so many available technologies that I try to incorporate in order to let others participate in all aspects of work. It is by experience that I appreciate, together with others I worked with, that information is important to maintain a harmonious relationship . The availability of different modes makes this easier that there is no longer an

The US Airways has grown to become a successful airline in the US Research Paper

The US Airways has grown to become a successful airline in the US - Research Paper Example After a series of mergers and buyouts, the US Airways grew from just a small airline operating in just a number of airports within the US to big conglomerate with a huge annual turnover (McNicholas 1). This airline has a colorful history and a rich culture facilitated by the presence of loyal customers coupled with hard working employees. However, evidence from reliable studies show that this success or rather triumph has come along with numerous setbacks. As of today, the US Airways faces serious challenges, which include the merger between itself and America West (Vasigh, Ken, and Liam 32). Analysts assent that the anticipated marriage linking the US Airways and America West brought certain obstacles, which comprise of labor challenges, integrating operations, competition, and a weak industry as well as the issue of rebranding the whole airline probably using a different color (Yunich 2). Despite being a low cost airline, the US Airways is still dealing with lost employee morale sp ecifically after the effects of September 11 started exerting heavy toll on the aviation industry (Taneja 65). Generally, in order for the US Airways to stay firm in business, it has to introduce few changes and alter a number of its stipulations. It is therefore recommendable for the US Airways to move from excessive assets, the filing of Chapter 11 (Bankruptcy, BUS 371), and lost customers to a â€Å"load factor† (Moyer and Reynolds 51). Position of the problem Since the problems facing the US Airways are numerous, it is substantial to include a number of spectrums that establishes several positions aimed at getting a clear picture of the situation. It is agreeable that merging with the America West is crucial for the US Airways business operations (Lu 34). It can result to increased profit margins, reduced competition, and potential utilization of the company assets (Pender and Richard 50). However, a critical review of the company’s feedback from various players in the same market shows that, the merger may never happen simply because other airlines competing for the same clientele claim that this merger may diminish them by rendering their businesses useless. Profoundly, the US Airways offers a low cost service to its customers while the America West offers similar services in addition to other favorable offerings to its clients (McNicholas 2). As such, a merger between these dominant airlines would mean increased competition pro the other airlines, which would result to low profit margins, loss of customers, and subsequent exit in the industry (Brent 92). Of course, not even a single airline would want this to happen so contesting against this marriage is a priority to most of the foreseen victims. Since the major problem facing the US Airways is the issues that resulted from its subsequent merging with America West, understanding that the US Airways should not lose sight of its mission and visions statements is imperative (Vasigh, Ken, and Liam 40). With reference to the US Airways statements visions and mission, the company seeks to provide safety and value to its customers (Moyer and Reynolds 75). Additionally, it commits itself into making every flight count and dedicates its corporate social responsibility department towards maintaining a sustainable environment. Although there has been no terror effects of any plane crash

Economonics Competition Policy in the UK Essay Example | Topics and Well Written Essays - 2000 words

Economonics Competition Policy in the UK - Essay Example This was a system that moved between, and mixed up; form and effects-based approaches with almost reckless dump. In United Kingdom, two main acts of legislation - the Competition Act of 1998 and the Enterprise Act of 2002 - have brought the EC's prohibition system to the UK, altered the name of the old Monopolies and Merger Commission to the Competition Commission and given it new powers. For example, they have criminalized price-fixing, created a specialist appeal and review court for anti-dependent cases and eliminated the old "public interest test", replacing it with a narrower, effects-based "substantial lessening of competition" test. At the same time, the two major competition policy bodies in the UK - the Office of Fair Trading and the newly renamed Competition Commission - have expanded, developed new areas of expertise and, possibly most adventurous of all, they have both been put into the hands of professors of economics. Competition is basically a practice of rivalry between various organizations, each of them is looking for to succeed customer's business. This competition may take place in a variety of behaviors - some firms try to win on cost, some spotlight on raising the worth of presented products or services, while still others use entrepreneurial dexterities to build up new products or services (J. Sloman, 2003). ... evel of overheads, a range of product contributions will arrive at the marketplace that bouts the heterogeneity of customer requirements and flavors, and the pace of advances will be great (J. Sloman, 2003). Significantly executives in such marketplaces have only restricted power over their settings (J. Parkin, et. al., 2004). They regularly have to do something when they are not prepared for it; they every so often require doing things rapidly and not competently than they believe that they must be done. The continuous go-getting between competitor organizations in a cutthroat marketplace can occasionally cause some misuse and doubling-up, and the entire thing frequently appeared to produce a somewhat messy thing (J. Parkin, et. al., 2004). Many executives, though intellectually and sensitively dedicated they are to challenge, recognize that they can perform better. For them, rivalry is not only strenuous, it is also wearisome. And certainly earnings are fairly harder to make in such marketplaces than they are in monopolistic marketplaces (K.A. Crystal and R.G. Lipsey, 2004). For example, a most prominent case of Tesco who monopolizes the retail market in UK, in spite of having an obvio us monopoly with 30% of the marketplace (a monopoly is defined normally as above 25%), its growth has gone unchecked by Competition Commission. The profits of 2bn have been at the outlay of farmers and other contractors who have had to tackle deteriorating prices, and small stores losing theirs local marketplace shares. Tesco is now a largest retailer with more than 2,300 stores globally. That could simply wash out some corporations' earnings, which consecutively could have grave effects for their share value, and might even make them defenseless to the take-over. Such as, under the

High Performance Work Systems Assignment Example | Topics and Well Written Essays - 500 words

High Performance Work Systems - Assignment Example The items mostly depend on the motivation and the environment in which an individual operates. Common basic items supporting the principles promoting the high performance work systems are like workforce capability and capacity, workforce engagement, and communication. Productivity and workforce performance depend on the organization of workforce capability and capacity invoked by integrated labor productivity management. In every working environment employees, staffing capacity and needs is evaluated strategically and operationally to enhance perfection of their performances. Managements in collaboration, with CFOs and operational leaders from various firms, determine staffing needs based on volume forecast, historical trends, benchmark data, and internally staffing standards. Staffing plans are important in monitoring of compliance and hiring techniques to facilitate performance and recruitment plans. Communication enhances performance rate because most leaders and the entire staff members meet to share ideas facilitating the improvement of various organizations. Employees can converge to share ideas freely without any problems to voice the issues affecting them positively or negatively thereby promoting the high performance rate. High performance management enables the evaluation of every SDH employee, annually, by their superiors to increase productivity for their commitments in various facilities. Results from the survey help in the developments of workers’ Tasks in their activities promoting high performance within various organizations. The aspects outlined serve to promote high performance at SDH. Numerous high- performing work systems start with great directive recruitment and selection practices, which tend to be diverse and intensive to get the best performing candidate. The staffing practices tend to support techniques aiding most of organizations to save money by performing superficial job of hiring experienced professionals for

The function of lunges Essay Example | Topics and Well Written Essays - 750 words

The function of lunges - Essay Example The bronchi further subdivide into bronchioles that divide even further into air sacs known as alveoli. Once inside the alveoli, air penetrates through a remarkably thin and wet membrane into the blood capillaries. Hemoglobin is the blood component that carries carbon dioxide from the heart. It releases it for exhalation in a backward process through the bronchioles, bronchi trachea and out through the nostrils. Oxygen present in the fresh air binds itself on the surface of hemoglobin and is transported to the heart for pumping to the other parts of the body. With oxygen supplied and carbon dioxide released, the gaseous exchange process is complete, which is the main function of the lungs (Hlastala and Albert 39). The lungs provide protection for the heart. The lungs are huge compared to all the other organs located in the chest cavity. They are made up of soft tissue and from their location on each side of the chest; they offer protection to the heart and other organs such as the arteries. Their soft tissue cushions the heart and acts as a shock absorber (Chiras 76). Lungs are fairly large with the human lungs ranging between ten and twelve inches. They can hold up to four hundred and fifty milliliters of blood. That is about nine percent of the all the blood circulating in the body. The lungs act as a reservoir from where blood is drawn to compensate for the blood lost through hemorrhage (Chiras 76). The lungs prevent the body from air-borne infection. Sometimes dust, bacteria or any other harmful particles are inhaled together with air. The mucus layer at the surface of the respiratory surface traps any of these foreign particles. The foreign materials are moved upwards through the beating of cilia, or the lungs initiate a cough that causes the expulsion of the materials outside the body (Chiras 77). Apart from being significant for metabolism, gaseous exchange has a second significance. It is necessary for

Earth's Magnetic Pole Reversals Essay Example | Topics and Well Written Essays - 1000 words

Earth's Magnetic Pole Reversals - Essay Example â€Å"In 2005, the North Magnetic Pole (NMP) was about 810 km (503 miles) from the Geographic North Pole. The NMP was in the  Arctic Ocean  north of Canada. The South Magnetic Pole (SMP) was about 2,826 km (1,756 miles) from the Geographic South Pole. The SMP was off the coast of  Antarctica  in the direction of Australia† (Russel). The presence of earth’s magnetic field can be explained through the dynamo effect. Deep inside the earth’s core is a solid iron ball with temperatures reaching as high as that on the sun. This inner core is surrounded by a molten mass of iron, called the outer core. The molten mass of iron circulates relative to the motion of the earth. Convection currents within this region generate our planet’s magnetism (Phillip). Over years, many scientists have proven that the earth’s magnetic field is changing. James Ross located the pole for the first time in 1831 after an exhausting journey during which his ship got stuck. No one retrieved it until four years and when they did, they noticed that the pole had shifted from its original position, even though by a small amount. The next observation occurred in 1904 when Ronal Amundsen found the pole again and discovered that it had moved almost fifty kilometers since the days of Ross. This movement of the magnetic poles has hastened in the recent past. â€Å"The pole kept going during the 20th century, north at an average speed of 10 km per year, lately accelerating to 40 km per year (Phillip). This sparked interest of researchers to study this phenomenon in detail. It has been discovered that iron and other heavy metals, present inside molten lave, align themselves in the direction of the external magnetic field when solidifying to form hardened rock. By studying the various layers of these rocks, scientists have measured the historical directions of the Earth’s magnetic field and concluded that the Earth’s poles

Writing issues Essay Example | Topics and Well Written Essays - 750 words

Writing issues - Essay Example Even if I understand that a written message should be coherent and properly organized, I have realized that my essays always lack this quality. After a careful evaluation of my written works, I found out that I am not well organized, creative and thoughtful (Chandler 26). My efforts to communicate through my writings do not bear fruit since my messages are not arranged in a flowing, interesting and convincing manner. Most of the times, my points are left hanging without being justified. Besides, I find it difficult to use comma. As one of the punctuation marks, comma should always be properly used. It has a lot of uses that vary from time to time and from article to article. For the message to be delivered to the readers, it needs to be appropriately used. However, because I do not know how to use it, my writings have been confusing. At times, they even lose meaning as they are misinterpreted by the readers. In order to appeal to my audience, I need to be more organized in my writings. Meaning, I should be keen on the way I use words and phrases. A part from using conjunctions to make my work coherent, I need to properly structure my writings. They should always start from the introduction and end with the conclusion (Rogers 40). If this is done, the writings will be readable and understandable to anyone who gets an opportunity to access them. Besides, I need to learn to be thoughtful, imaginative and creative. Writing should not just be done for the sake of it. It should be a means of communicating to others. However, if it bores, no one would waste their time reading them. In this regard, I will have to ensure that I improve on these areas. They can make my writings to get the approval of the readers. Otherwise, I will be writing for myself (Boltz 722). On the other hand, I need to look for ways through which I can improve the use of comma. First, I should spend adequate time at the Writing Centre. Here, I

Todays Marriages and Families Assignment Example | Topics and Well Written Essays - 250 words - 210

Todays Marriages and Families - Assignment Example The magazine photo that I selected has a young girl roughly four years old reaching her arms out to her father while the mother is seated next to her. I deemed this as a structure-functional perception. It appears like the family brought up their child responsibly, provided emotional security and support. Nevertheless, it also might be the attachment theory since the child appears to develop more attachment to her father rather than her mother (Bruhn, 2005). Â  I am always interested in how the number family members in my house are from my mother’s side, which is my grandmother. The only data collection techniques, which can be used, are interviews and questionnaires (Lamanna & Riedmann, 2011). I asked my mother, my mother’s brothers and my mother’s sisters. I discovered that my grandmother has 15 children. I did not discern that I had so many uncles and aunts. Â  The age group, which is rising as a proportion of the U.S. populace, is the elderly, 65-plus years (Bruhn, 2005). For the following two decades, million Boomers will stop working. There will be roughly 10,000 new retirees included in the Medicare and Social Security rolls every day. Individuals are living longer due to U.S.’s advance health care system and clean food (Schwartz & Scott, 2012).

Romeo and Juliet Essay Example for Free

Romeo and Juliet Essay Romeo and Juliet has always been known as one of Shakespeares most popular and tragic love story plays. It is known for its dramatic ending love scene and tale of twisted fate. This essay is based upon the pathos of the last scene of Romeo and Juliet. Pathos is a quality that arouses emotions such as pity, sympathy or despair. This is therefore why the essay is based upon the last scene as it is the most tragic and dramatic scene in the play which successfully arouses sympathy in the reader due to the tragic atmosphere created by Shakespeare. The atmosphere is created in Act 5 by Shakespeares gift of writing that effectively arouses emotions and passions in the reader. For example, Romeos death was unnecessary as Juliet was merely sleeping which Romeo was unaware of. Shakespeare increases the feeling of pathos in the audience by the dramatic use of irony as the audience know that Juliet is alive therefore there is an alternative ending possible however Romeo is convinced of her death and with a broken heart takes his own life leaving the audience feeling a sense of despair at this unnecessary tragedy. Another example of dramatic irony is shown in the quote: thou art not conquerd beautys ensign yet Is crimson in thy lips and in thy cheeks, And deaths pale flag is not advanced there.. Here Romeo is distraught that she is dead and is saying shes looking beautiful, how can she be dead. Of course she isnt dead, merely sleeping, and the audience painfully know this. This then increases the feeling of pathos with the use of dramatic irony. O my love, my wife, Death, that hath suckd the honey of thy breath.. the language used in this section is beautiful and very dramatic, the deep, in depth language has a great affect on the atmosphere, and the feeling and emotions in the audience. Written plays, unlike most novels perhaps, are composed in the present tense which engages the reader as they know directly what is going on in the characters head, rather than being presented historically in the past tense, which has a less dramatic effect on the reader. It is more gripping when written in the present tense as the story unfolds directly before the reader. Heres to my love! (drinks) oh true apothecary ! thy drugs are quick then thus with a kiss I die this quote from Act 5, Scene 3 is when Romeo drinks the poison and is an example of Shakespeares dramatic language. The pathos and atmosphere builds up as Juliet awakes I do remember well where I should be; and where is my Romeo? as she rises to find Romeos body. This scene is very tragic as fate has struck in such a terrible way. This is mostly due to the heavy, strong tragic language used, it has a dramatic affect on the scene. O churl, drunk all, and left no friendly drop To help me after? I will kiss thy lips.. as you can notice from the quote, the language used is so deep and poetic, especially at this dramatic stage in the play. It is so affective as the audience sympathise with the characters, because the language succeeds in involving them with the plot. The build up to the ending scene has a great affect on the pathos, as the letter does not get to Romeo, and there is a worried, anxious atmosphere in the audience- as nobody knows what shall become of Romeo, and if Friar Lawrence will get to Romeo in time to tell him. There is a great build up which grows through the play, and by the ending scene there is a great anxious atmosphere, which has gradually built up through the play. The above scene and setting (in a tomb) creates a sombre mood and makes the reader empathise with the language more effectively (again increasing the whole pathos and feeling to the scene). The scene is taking place in a gloomy tomb with sleeping bodies, including Juliet who is looking peaceful in her sleep, the setting is therefore dark and gloomy and even more tragic. Shakespeare has therefore created a very tragic and saddening mood by choosing that setting for the most dramatic scene. I am almost afraid to stand alone Here in the churchyard, yet I will adventure. The setting is therefore creating an atmosphere as well as the language-which arouses peoples emotions even more and helps contribute to the pathos. To conclude, what contributes towards the pathos of Shakespeares play is the atmosphere he creates through language, characters, scene, setting and ironic situations through his clever development of the storyline, the other characters also contribute, as it seems as though they are all against Romeo and Juliet- apart from Friar Lawrence and Juliets nurse. Friar Lawrences good intentions precipitate the tragedy- although it wasnt his fault and he was only trying to help the difficult situation. As for Old Capulet and Lady Capulet who do make the situation worse-and could in fact be blamed for the tragedy, this is something the audience think about after the play, which characters could be blamed for the tragedy, this therefore does affect the pathos in a great way. The language, setting, characters and build up all come together at the end to create a great atmosphere and pathos.

Motivation Of Employees In The Hotel Industry Tourism Essay

Motivation Of Employees In The Hotel Industry Tourism Essay The last few decades have been characterised by a radical change in management perceptions about the importance of the work force in achievement of strategic objectives of business organisations. Management experts agree that in situations where competitors have similar financial resources and organisational infrastructures, competitive edge can be achieved only through well trained and intensely motivated employee forces. The hotel industry has grown remarkably in the last two decades. With the industry expanding exponentially, capacity builds ups in business and tourism centres have created enormous competition in all its segments. Whilst hotel managers strive to provide good physical facilities to their clients, it is widely accepted that excellence in service quality is best achieved through the efforts of employees to meet customer needs. Motivating employees is thus seen to be a critical task of hotel managers. The dissertation project aims to examine the importance of motivating employees in the hotel industry for the achievement of competitive advantage and the best possible ways and means of doing so. The last few decades, especially the period that commenced from the 1970s, have been characterised by radical changes in management perceptions about the importance of the work force in achieving the strategic objectives of business organisations.  [1]   Whilst traditional management theory treated workers, along with capital, land and machinery, as just one of the four important inputs of business enterprises, current management thought and practice, influenced on one hand by the opinions of experts like Drucker, Porter, Maslow and McGregor, and on the other by dramatically altered business conditions, perceive employees to be critical to organisational success and growth.  [2]   Contemporary developments like globalisation, economic liberalisation, the deconstruction of trade and physical barriers, technological advances, the spread of the internet, instantaneous communication technology, cheaper travel costs and the emergence of China and India as economic power houses have made the world intensely competitive and diminished the superiority of Western business organisations.  [3]  Management experts agree that in economic scenarios where competitors have the same sort of financial resources and organisational infrastructures, competitive edge is mainly achieved through well trained and intensely motivated employee forces.  [4]   The hotel industry has grown remarkably in the last two decades. Globalisation along with greater discretionary incomes in the populations of advanced and developing countries, cheaper travel, open borders and the opening of numerous business and tourists destinations have led to substantial increases in business travel and domestic and international tourism and created enormous opportunities for hotels. Aims and Objectives With the hotel industry expanding exponentially, capacity builds ups in business and tourism centres have created enormous competition in all sectors of the hotel industry.  [5]  Being service oriented in nature, hotels work towards achievement of service quality and improvement of customer satisfaction for achievement of competitive advantage.  [6]   Whilst hotel ownerships strive to provide good physical facilities to their clients, it is widely accepted that excellence in service quality is best achieved through the efforts of employees to meet customer needs  [7]  Motivating employees is thus seen to be a critical task of hotel managements.  [8]   This proposal aims to investigate the contribution of employees in achievement of profitability and competitive advantage in the hotel industry, the importance of motivation in improving employee performance, and the role of managers in motivating employees to improve their performance and commitment. Its objectives are elaborated as follows: To examine the ways and means in which employees can add to the service quality, efficiency, profitability and competitive advantage of the hotel industry. To examine the impact of motivation on the performance of hotel employees. To examine and assess the various ways of motivating employees. To examine the roles of managers in motivating hotel employees. 2. Literature Review Human resource management theory has changed radically over the past few decades. Whilst traditional HR theory was influenced and shaped by scientific management principles embodied in the approaches of Henry Ford and Fredrick Taylor for improvement of worker productivity, the post Second World War period saw the emergence of behavioural experts and psychologists like Maslow, McGregor, Herzberg and Vroom, who discarded Fordist and Taylorist principles and emphasised that worker performance could be much better enhanced by meeting the various needs of workers, training and developing them and empowering them to do their work to the best of their ability.  [9]   Experts like Maslow and Herzberg stress that worker motivation is critical to worker performance and organisational managements need to motivate members of their work force in carefully thought out, well planned and deliberately implemented ways. Maslowà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s theory of needs, McGregorà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s exposition of theory X and theory Y, Herzbergà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s detailing of hygiene and motivating factors, and Vroomà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s work on motivating employees deal with the various needs of workers and how they can best be motivated by organisational managements.  [10]   Extant HR theory also places great stress on the need of managers to know methods of motivation and use them appropriately in the work place.  [11]  The evolution of human resources as a management discipline has been characterised by numerous academic and research work on the best possible methods of motivating employees.  [12]   Employees are seen as key inputs in the hotel industry and most well known hotel chains like The Marriot, The Mandarin Orient and The Ritz Carlton are known to have very carefully thought out and well implemented employee performance improvement programmes.  [13]  Motivation plays a key role in such programmes and is a key responsibility of hotel managers.  [14]   The Ritz Carlton, the only two time winner of the famous Malcolm Baldridge awards for quality, is known to have an excellent employee training, development and motivation programme.  [15]  Employees at the Ritz Carlton are motivated through a complex system of policies and procedures that deal with remuneration, training, involvement, responsibility allocation, employee respect and empowerment.  [16]   Employee motivation and the responsibilities of managers in motivating employees are key areas of focus in hotel management theory.  [17]   3. Research Methodology Research Hypotheses The aims and objectives of the project, along with the information obtained during the course of review of available literature, lead to the following research hypotheses: Hypothesis 1: Employees are critical for the achievement of service quality, profitability and competitive advantage in the hotel industry Hypothesis 2: Employee motivation leads to improvement in employee performance Hypothesis 3: Managers can motivate hotel employees in various ways. Research Methods The choice and adoption of appropriate research methods for projects are essentially decided by the nature of the project and the resources available with the researcher.  [18]  With there being two basic methods of social research, namely the quantitative and qualitative approaches, the choice of an appropriate method for this assignment will be shaped by the research hypotheses elaborated above.  [19]   The research hypotheses essentially deal with issues and questions that are how, why and what in nature, and are thus best tackled by use of interpretative qualitative methods, rather than through analysis of the results of number based quantitative surveys.  [20]   Information for the project will be obtained from primary and secondary sources.  [21]  Primary information sources are those that provide information directly from people and organisations who form the subject of research, whereas secondary information is obtained from sources created by people, (e.g. authors, researchers, or media publications), who are unconnected with the research subject.  [22]   It is proposed to use both primary and secondary sources for this research project.  [23]  Whilst substantial information from secondary sources on human resource management, motivational theory, service quality, managerial responsibility and the responsibilities and methods of managers for motivating employees is available in the public domain, primary information can be obtained through study of hotel websites and interviews of people associated with the research subject.  [24]  With the hospitality industry now a globally important industry, a number of academic publications and research studies are available on different aspects of hotel management.  [25]  The study of such sources will enable the researcher to obtain accurate and extensive information on the subject under study.  [26]   The methodology entails the collection of primary and secondary data from the sources elaborated earlier, the qualitative interpretation of obtained information, and its detailed analysis for the purpose of examining the validity of the hypothesis.  [27]   Ethics Care will be taken to ensure that all ethical requirements regarding the conduct of research projects are followed, especially with regard to protection of the rights and confidentiality of primary respondents. Adequate care will be taken to ensure that appropriate credit is given to all information sources.  [28]   Constraints and Limitations The study will be limited by the amount of primary and secondary information accessed by the researcher, as well as the amount of cooperation provided by the primary respondents from the hotel industry. It is envisaged that obtaining appointments with hotel managers may be a difficult task and could delay the gathering of information and data. The researcher plans to start taking appointments with managers in the hotel industry at the earliest in order to maintain the research schedule. 4. Timeline The research is expected to take six months to complete. The timeline of the project is provided below. Function Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Determining of Secondary Information Sources * Study of Secondary Information Sources * * * Determination of Primary Information Sources * * Study of Primary Information Sources * Fixing of Appointments with Primary Respondents * * Conducting of Interviews * Collation of Secondary Information * Compilation of Literature Review * * Compilation of Primary Information * Collation of Data * Data Analysis and Interpretation * Preparation of Rough Draft of Dissertation * Discussion with Tutor * Preparation of Final Dissertation * Word Count: 1610 without Tables

Commodity Price Movements in the Twenty first Century

Commodity Price Movements in the Twenty first Century Commodity Super Cycles and Bubbles Sharp movement in commodity prices, especially of oil, and some base metals like copper, since the turn of the century, have attracted enormous international attention and debate. The price of oil, which shot up from the sedate levels of approximately twenty-eight USD per barrel, a few years ago, to the high seventies, in 2006, sent ripples through the economies of advanced nations, even as it added billions to the current account surpluses of oil rich nations, like Kuwait. While the movement in oil attracted international attention because of its universal usage, prices of items like copper, steel, cement and uranium also soared to new heights. These developments led to intense discussion among economic experts and business thinkers, who were divided in their opinion about the causes of commodity behaviour, as well as its future movement. While a large number of scholars feel that the recent movement in commodity prices is no more than the initial movement of a wave that will last for many more years, if not decades, others put it down to wrong economic policies and the work of market speculators. This research assignment aims to study and explore the various aspects of this extremely intriguing and globally significant development, and thus arrive at findings and conclusions that are able to illuminate the complex topic. Executive Summary This research assignment attempts to delve deeply into the causal factors behind the sharp upward movement in prices of commodities during the last six years. The assignment is structured into sections that describe the situation in totality, and then take up the many theories that have gained ground in recent years on the issue. While many people believe that a commodity super cycle is under way, powered by the demand for materials from an enormously fast growing China, others feel that these movements, like the one in the price of oil, is a twenty-first century reminder of the commodity bubble that took the price of tulips to astronomical heights in seventeenth century Holland. The study includes an analysis of the commodity super cycle, the roles played by the growth of China and India in increasing commodity demand, the effect of liberal monetary policies, and that of speculative activity, in the price movement process. Detailed analyses of the thoughts and writings of experts on the subject, including thinkers like Jim Rogers and financial professionals like Stephen Roach, along with the study of texts and journals available on the subject, have led to findings that have lent themselves to some interesting analyses and conclusions. These will hopefully prove to be relevant in providing fresh perspectives, and increase available knowledge on the issue. 1. Introduction a. Overview Recent years have witnessed enormous changes in the global economic scenario. Much of what is happening in the cross continental market place owes its origin to the vision and determination of a slightly built and thrice married octogenarian, Deng Xiao Ping. Deng, the Chairman of the People’s Republic in the 1980s, introduced broad and sweeping changes in the Chinese economy under the name of the four modernisations. His reforms, which covered agriculture, industry, science and technology, and the military, opened up the Chinese economy, and were instrumental in transforming it into one of the largest and fastest growing economies of the world. (Deng Xiao Ping, 2007) Years of double-digit economic and infrastructural growth in China profoundly affected the economies of other countries, and, in the process, set off a huge tide of economic movement that encompassed the whole world. In the mid nineties, the socialist government of India, threatened by international debts, shrinki ng foreign exchange reserves, and an exasperated population, decided to catch up with its larger neighbour, and initiated a series of economic reforms that led to sharp increases in economic development, and catapulted the country into the ranks of the fastest growing world economies. The unharnessing of these two countries, which together account for a third of global population, from the shackles of state economic control, has created an unprecedented demand for commodities. As China and India rush to make up for decades of low growth, poor living standards, and abysmal poverty, their booming economies are hungrily devouring ever-increasing quantities of metals, agricultural produce and oil products. This insatiable hunger, in the opinion of economists and market analysts, has led to the development of a sustained increase in prices of commodities, known in economic parlance as a commodity super cycle. Other thinkers and columnists have expressed dissenting views, blaming market speculators for building up prices to unrealistic levels and creating artificial bubbles; which were bound to burst, and cover all connected with a good amount of unpleasant and possibly disastrous debris. b. Definition of problem The current upward movement of commodity prices has assumed worrying overtones. The escalating prices of crude oil, which moved up, in a period of a few years, from the regions of the mid twenties per barrel, to that of the high seventies, perplexed and worried governments, and economic thinkers all over the world. Apart from oil, prices of many commodities, particularly metals and agricultural produce, have escalated to unprecedented levels, impacting price indices, affecting buying power, and unsettling economies on a cross continental basis. Price behaviours of different commodities are under detailed scrutiny, with experts trying to pin down their reasons. While the sharp increase in the price of maize is attributed to the diversion of corn for production of bioethanol for the US and Brazilian markets, (Trade aspects of Biofuels, 2007) the increase in prices of oil is thought to be due to its increased consumption in China and India. The huge boom in the Indian stock market, on t he other hand, appears to be due to the large influx of foreign institutional investors, who have taken indices in the last two years to more than twice that of 2005. While the enormous increase in economic activity has resulted in increased profitability for business corporations, and has presumably contributed towards reduction of poverty and want, the accompanying inflation has also brought with it enormous worries, particularly for governments of developing countries. Recent months have seen governments, (under tremendous pressure from angry citizens) and central banks raise prime lending rates, and use other economic tools to suck extra money out of the system, in futile attempts to contain runaway inflation. In the midst of numerous theories, the only constant appears to be in the movements of commodity prices, which continue to climb, of course with periodic pauses, and occasional corrections. The development of a long lasting commodity super cycle, in the opinion of many experts, appears to be the major causal factor behind the present circumstances. In this scenario, it becomes important for economic thinkers to focus on the actual reason s for this phenomenon, and its likely consequences, in order to take corrective action. c. Objective This assignment delves deeply into the issues related to commodity life cycles, and commodity bubbles, from economic, political and social perspectives, and with particular reference to the current global economic scenario. The subject matter is enormous and covers local and international developments in politics, society and economics. The assignment involves examination of primary and secondary information sources, and the study of available literature and research. It makes substantial use of secondary material in the form of texts, journals and magazine articles as well as internet sources for purposes of data availability, analysis and investigation. A good amount of thinking on the subject has occurred in the past few years with numerous experts expressing frequently contradictory and quite confusing views in their syndicated and one-off columns. Despite serious and sincere effort, some important information regarding the topic may well have not found place in the assignment, a deficiency that could limit the validity of its conclusions. The bibliography provides complete details of the accessed information. The order of issues taken up for discussion is sequential, for the sake of logical progression of ideas and thought. 2. Literature Review a. The Commodity Super Cycle Economists have, for decades, believed in the theory of cyclical growth, characterised by periods of growth, followed by years of depression or slump. Events, economies, and political systems move through cycles similar to the natural life cycles of living beings. These cycles, while observable, have no obvious reason and involve changes between periods of comparatively swift increase of production, income and prosperity and periods of relative stagnation. (Business Cycle, 2007) These periodic movements do not follow an established or expected pattern and behave randomly, with extended, or short, growth or slump years. In the stock and commodity markets, these boom and bust periods have been famous for causing widespread prosperity or destruction. Cycles generally comprise of four distinct phases namely contraction, trough, expansion, and peak. Whereas expansions and contractions account for the major portion of the cycle, the troughs and peaks denote the lower and upper turning poin ts where contractions change into expansions and vice versa. These cycles have been the focus of detailed economic study for ages with governments trying, mostly without success, to smoothen slumps, periods that have historically caused widespread unemployment, losses and suffering. Business cycles are as applicable to commodities as to other elements of the economy and are generally measurable in movement of national or regional GDP. Occasionally, commodities move into a phase of upward movement in prices for extended periods, which continue for many years, sometimes even many decades. They mainly occur because of major economic developments that are significant enough to drive demand and consumption on a global basis for long periods. Super cycles form because of the industrialisation or urbanisation of a major economy, (Heap, 2005) a process that normally occurs over decades, and leads to situations wherein increases in supplies of commodities are unable to catch up with increases in their demand. These imbalances, while originating in particular geographical areas, occur for years and result in substantial price increases of commodities, and that too on a global basis, for extended periods. What we can say is that there clearly are long-term cycles and that they are driven by fundamental changes in the world around us. Global wars, the industrial revolution, major innovations in transport and communications are just some of the factors that can instigate long-lasting shifts in economic growth, that in turn stimulate demand for commodities. Increased demand drives prices higher while producers struggle to increase the capacity to meet that demand. Ultimately, prices peak when excess capacity has been developed – the cycle is then completed when demand abates and general surpluses force prices lower. (Guthrie, 2007) Two discernible super cycles have occurred during the last 150 years. (Heap, 2005) Huge economic and infrastructural growth in the USA, during the turn of the nineteenth century, created a super cycle in commodities. Later, commodity super cycles developed during the post war reconstruction of Europe followed by enormous economic activity in Japan. If you look at history, there have always been super cycles in demand for commodities. There was a super- cycle during the British industrial revolution, during America’s huge period of growth before and after the second world war and during Japan’s industrialisation in the 1970s.† (Cooper, 2005) Many economists feel that the movement of commodity prices since the turn of the millennium indicates that the global economy is in the midst of a strong commodity super cycle, a phase that has just about started and still has a long way to go. Gary Dorsch, writing for SafeHaven (2006) states that the Reuters Jefferies Commodity Price Index (CRB), which comprises of futures in â€Å"live cattle, cotton, soybeans, sugar, frozen concentrated orange juice, wheat, cocoa, corn, gold, aluminium, nickel, unleaded gasoline, crude oil, natural gas, heating oil, coffee, silver, copper and lean hogs† has reached levels 91 % higher than what it was four years ago, its highest level in 26 years. Apart from the behaviour of the CRB index, prices of oil have increased seven times from its 1999 levels. Demand for oil is about 85m barrels a day at the moment and most people forecast that it will hit 125m barrels a day in the next 15 to 20 years. I see no way in which this will be met, so oil prices will stay high.† Goldman Sachs, the investment bank, has even forecast that the oil price could hit $100 a barrel in the event of a â€Å"supply shock† — a disruption to the supply of oil as a result of natural disaster, sabotage, war or political upheaval. (Cooper, 2005) Copper has also behaved in virtually the same manner from the lows it saw in 2001. â€Å"Now it’s the turn of the grains, where wheat and particularly corn have exploded higher on the US futures exchanges.† (Guthrie, 2007) A number of other experts are reinforcing this phenomenon. While metals, led by base metals such as copper, aluminium and zinc, as well as precious metals like gold, silver and platinum have, until now, along with oil, led the price charge, prices of agricultural produce are also beginning to rocket. â€Å"Recently however, commodity traders have doubled sugar prices to 24-year highs, and are moving into coffee and soybeans.† (Dorsch, 2006) Prices of iron ore have risen to dizzying heights, practically 72 % in 2005. While tracking of commodity prices is an ongoing activity, the frenetic movement of prices during the last seven years has added another dimension to the issue. Numerous articles, either prophesying its continuation for many more years or predicting a roll back in the near future, pack the pages of financial journals and magazines. Each minute movement in commodity prices is subjected to detailed scrutiny, compared with trends and used as a base for future forecasts. The majority however appears to be in consensus that the current trend of increasing prices, across a cross section of fuel, metal and agricultural commodities should remain in place for quite some time. b. Main Causes behind Current and Expected Price Behaviour in Commodities While numerous major and minor reasons affect commodity price behaviour, this discussion focuses on a few major reasons, widely accepted to be the primary causal factors behind the constant and significant price increases of the past few years. The liberalisation process kick started by Deng Xiao Ping, in China, in the early eighties, led to developments that were possibly beyond his wildest expectations, and catapulted him into the ranks of those whose actions changed today’s world. The implementation of economic reforms accompanied with the opening of the Chinese economy resulted in unprecedented and unimaginable growth rates. During the last twenty-five years, the country’s economy changed from a centrally administered system, largely closed to international trade, to a market oriented economy with a rapidly growing private sector. Reforms, which commenced with the phasing out of collective farming, expanded to incorporate freedom from price control, fiscal decentralization, increased autonomy for state controlled enterprises, a large and diverse banking infrastructure, vibrant stock markets, the growth of privately owned and controlled enterprise and the opening of the economy to trade and investment. As C hina implemented the reforms in a phased manner, the restructuring and consequent efficiencies led to a year on year GDP growth well in excess of 10 % and a tenfold increase in GDP since 1978. The country, in recent years, has overtaken the most advanced nations of the world, and in terms of purchasing power parity, stands second only to the United States. Exports are a key driver behind the Chinese economic miracle, with Chinas currency exchange controls and trade surplus with the US topping $204 billion in 2005, a 25% increase on the previous year and nearly 30% of the total US deficit. The lynchpin of Chinese exports is the low Yuan /dollar exchange rate pegged at 8.11 per dollar, undervalued by 30% to 40% on a trade-weighted basis. (Dorsch, 2006) Growth has also driven enormous spending on infrastructure and urbanisation, with millions of Chinese relocating from villages to urban centres. Foreign investors, from the west, as well as from East Asian economies like Japan and South Korea have invested significantly in the PRC, making it, in many ways, the world’s factory. The country has the largest current account surplus, nearly 180 billion USD, in the world. (CIA Factbook, 2007) This phenomenal economic and industrial growth, involving a ten-fold increase in GDP, has made the country a huge commodity consumer. â€Å"In China, intensity of use is now three times that of the USA, with demand driven by urbanisation, industrialisation and fixed capital formation.† (Heap, 2005) The Chinese miracle, with its huge demand for commodities has affected commodity prices profoundly in the past few years. â€Å"As China’s economy expands, it is sucking in raw materials to build up its infrastructure, including roads, power stations and factories.† (Cooper, 2005) This demand led to the country picking up a huge share of the overall growth in global consumption with growth in internal consumption. â€Å"The International Monetary Fund reports that its share of the overall growth in global consumption of industrial commodities between 2002 and 2005 was massive – 51% for copper, 48% for aluminium, 110% for lead, 87% for nickel, 54% for steel, 86% for tin, 113% for zinc, and 30% for crude oil.† (Guthrie, 2007) The country now accounts 12 % of global industrial production, compared to 6 % in 1995, 4 % of GDP on an exchange rate basis and 13 % on a purchasing power parity basis. Appendix A provides details about China’s demand for various metals. The constantly increasing demand from China, despite regular predictions of slowdown, has served to propel commodity prices year after year. While these price surges have had their periods of relative stagnation, as well as corrections, the demand shows no sign of abating and should grow for many more years. The per capita consumption of beef, for example, in China is 12 pounds per person, compared to 100 pounds per person, in western countries. As perceptions change and the possibility of the country catching up in the prosperity scales with advanced nations becomes a reality, the projected increase in demand assumes overwhelming proportions. While China has been and should continue to be a major driver of commodity prices for many more years to come, other factors have also contributed towards price movement and their effect may well increase in future. India, the world’s second largest country and its’ largest democracy started opening up its economy from the mid nineties. Shackled for years under a bureaucratic mixed economy regime that favoured the public sector, the country suffered from an abysmally slow growth rate for practically fifty years since it achieved independence in 1947. The opening up of the economy, and the introduction of economic reforms, while slower in implementation than China’s, (due primarily to the democratic and debate oriented nature of Indian society), nevertheless picked up steam by the end of the millennium, and entered an era of high growth in the early years of the present decade. The country is today, after China, the second fastest growing economy in the world, and is achieving growth rates of nearly 9 %. While both industry and services are growing at rates much faster than 10 %, agricultural growth has been comparatively slower. Indias Prime Minister Manmohan Singh, wants his country to achieve 10% economic growth in the next two to three years, to create more jobs and help lift a third of the countrys 1.1 billion people out of poverty. Asias fourth-biggest economy expanded 8% in the second and third quarters of 2005. Singhs government wants industrial production, which makes up a quarter of Indias economy, to grow 10% annually to boost the incomes of Indians, one in three of whom live on less than $1 a day. Indias industrial production grew at an annualized 8.3% rate between April and November 2005, faster than major economies like US, UK, the Euro zone, Japan, Brazil, Indonesia and Russia. Only China and Argentina recorded faster industrial production rates of 16.6%, and 9.6% respectively. (Dorsch, 2006) In India, domestic demand makes up practically 70 % of the national GDP and dominates the economy, as opposed to exports, in many other nations. Indian imports, though lesser than that of China, doubled in the last three years, adding to commodity demand and strengthening the consumer super cycle. Terming Indias economic growth since 1991 phenomenal, World Bank President Paul Wolfowitz on Saturday said its GDP (gross domestic product) growth could be pushed up by one to two per cent with speedy reforms. He said: The dynamism shown by India in the last 15 years is phenomenal. India can do better A couple of percentage more growth can be possible. But it needs sound fiscal and monetary policies. Continuity of reforms was important for the high growth, evident in the last 15 years. Indias incredible growth story was a policy model to the world. It showed continued development in democracy and open society. (India’s growth story, 2005) Apart from India, the two other BRIC countries, Brazil and Russia, are also growing strongly, strengthening the demand for major commodities. While the sharp spurt in growth shown by Japan in recent years has also fuelled demand, the growth generated by the BRIC countries, as well as economies of countries like Argentina and South Africa should continue for many years, even for some decades, as these countries try to achieve parity with the advanced nations. Monetary policies followed by the central banks of most countries have also played a significant role in fuelling commodity price increases. Central banks of most countries, Japan, Europe, China and India have followed super easy money policies from the beginning of the millennium right upto the last quarter of 2006 and this along with the demand from the Chinese and Indian economies have worked towards pushing prices up to record levels. The Peoples Bank of China increased its M2 money supply by 18.3% last year, issuing more Yuan to soak up foreign currency earned through foreign trade and direct investment into Chinese factories from abroad. Explosive money supply growth, in turn, boosted domestic retail sales by 13% last year, and industrial production was 16.6% higher in November from a year earlier. Chinas central bank raised its M2 money supply target to 17% in the third quarter from 15% earlier, to offset stronger demand for the Yuan, and maintain the peg at 8.11 per US dollar. (Guthrie, 2007) In Japan, money markets have received trillions of yen, more than required by local Japanese banks, pushing interest rates on deposits to levels even below zero. This enormous amount of excess and free liquidity has enabled both Japanese and hedge fund traders to take up large speculative positions in global commodity markets. While conservative counsel advocates a stricter monetary policy, authorities are reluctant to make changes in a policy that has seen overnight lending rates staying at zero for nearly five years. In Europe, loose money availability has also helped in fuelling inflation and price instability. The growth rate of M3 Money supply in Europe in Europe has become considerably higher than the previous year, and helped in lifting stock markets to higher levels. All over the world, bankers have seen commodity indices running away but refrained from taking action lest growth rates get hurt. Another factor that hinders bureaucrats from taking action after inflation starts hitting significantly high levels is the underlying fear of small course-corrective measures not working and the risk of dampening growth.† If a central bank stops excess liquidity too late it has to raise rates much more strongly and that causes turbulence on the markets.† (Guthrie, 2007) Indian policy makers, found to their chagrin, that inflation growth rates that had crossed 6.5 % (and were threatening to destabilize the government) proved immune to three doses of interest rate hikes, by 50 basis points each time. A sharp hike in borrowing and lending rates took place in recent weeks. With inflation up at 6.4 per cent and the RBI saying it will take â€Å"all the necessary monetary measures†, further hikes in interest rates could come. But will raising interest rates bring inflation under control? Does India have the markets and institutional framework in which raising interest rates is an effective instrument for inflation control? Does India have a central bank that has learned how to conduct monetary policy in an open market economy? The answer to these questions is: No. In this sphere, India lags behind modern practices. (Patnaik, 2007) While lack of faith in the measures taken by one’s own government appears to be a generic trait with analysts all over the world, sustained increases in commodity prices have led to a consensus that economic and monetary policies, followed all over the world, have been unbalanced in their blind preference towards growth, to the exclusion of inflation. The unbridled use of liberal monetary policies has contributed towards this present climate of inflation, and in strengthening the commodity super cycle. The creation of shortages because of rapid and unexpected growth in consumption is a fait accompli, and a short-term discomfort economists are ready to bear, (in the interest of growth), until increased supply stabilizes the situation. In the absence of measured intervention, unbridled increase in prices, apart from inducing speculative activity, also attracts hordes of genuine investors, big-ticket investment funds, pension funds, and even individual retail investors. Pension funds, as well as small, retail investors are looking to commodities as a crucial part of diversification of any investment portfolio. Although schizophrenic commodity day traders could decide to turn massive paper profits into hard cash at a moments notice, causing a 5% shakeout, the longer-term odds still favor a continuation of the Commodity Super (Guthrie, 2007) c. The Future of the Present Inflationary Movement Commodity super cycles, by their nature and their reasons of origin, run for extended periods, for many years and some times for decades. Modern day literature refers to just two or three super cycle in the last two centuries, one caused by American industrial growth at the beginning of the twentieth century, and the other caused by post war reconstruction in Europe, followed by intense Japanese economic activity. The second super cycle lasted for nearly three decades from the late forties until the depression of the eighties. The current super cycle, if at all it is one, has gained momentum only during the last six years, and prima facie still has a long way to go. While monetary policies of powerful and rich individual nations, like the USA and Japan, as well as regional groupings, like Europe, will be able to influence commodity prices through tightening or loosening money supply, the extent of the commodity super cycle will depend primarily upon the growth stories being played ou t in China and India, and to some extent in the other two countries, Brazil and Russia. While China and India are both on the fast track to economic prosperity, they remain countries with low per capita incomes and consumption. The desire to achieve economic prosperity, in these economies, will not be satisfied with achievement of national GDP targets but will continue until individual aspirations of people are met in these two countries. We have China embracing capitalism. We have India embracing capitalism. That’s brought 2.2 billion people into play as very ambitious earners, who aspire to middle class status. If we take Asia, there are 3.5 billion people who aspire to the same middle class lifestyle many of us in the West take for granted. If we look further beyond Asia, this same phenomenon is evident with many other developing countries. We see it in parts of the Middle East with the Dubai city-state as an example. (Finch, 2006) Two simple examples will serve to elaborate this argument. As stated earlier, per capita consumption of beef in China is 12 pounds per person whereas it is more than 100 pounds per person in the advanced countries. Similarly, in India, where the majority of the people do not eat beef, and around fifty percent are vegetarian, the per capita consumption of chicken is around 12 pounds compared to more than 200 pounds in the west. A recent report by Goldman Sachs states that even if, as predicted, both these countries reach the GDP levels of the USA by 2050, their per capita income will not exceed half that of the USA. This gives rise to two inferences, (a) the huge amount of latent demand in these countries and (b) the extended period over which these growth stories will possibly play out. Indias Prime Minister Manmohan Singh, wants his country to achieve 10% economic growth in the next two to three years, to create more jobs and help lift a third of the countrys 1.1 billion people out of poverty. Singhs government wants industrial production, which makes up a quarter of Indias economy, to grow 10% annually to boost the incomes of Indians, one in three of whom live on less than $1 a day. (Dorsch, 2006) Apart from the enormous potential for prolonged economic and industrial growth that can occur because of progress in these two countries, the fact that India is moving roughly ten years behind China, could lead to a situation where India’s growth rates start improving further when China’s starts tapering off; thus extending the period of the cycle. Climbing markets are prone to periods of lulls, stagnation and even correction. Experts feel that these phenomena are bound to continue to happen, but the demand for commodities will grow at such an overwhelming pace, not just in China and India, but also in other countries of the developing world that it will soon reassert itself and bring back bullish behaviour. While there is intense speculation in academic circles about the probable period of the inflationary run, very few people are ready to take a bet on its probable date of demise. Economists are quite sure of phases of economic activity where waves of activity and growth follow periods of slowdown and even stagnation. The problem arises when quantification is called for. In the past Dewey and Dakin in their book â€Å"Cycles: The Science of Prediction† (1947) that a super cycle that moves from trough to peak to trough can last for as long as fifty to sixty years. Obviously, these longer waves comprise of a number of sm aller waves, where activity increases and decreases in finite periods Even as convinced a believer in the commodity bull cycle as Jim Rogers points out that the shortest boom lasted 15 years, while the longest lasted 23 years. His conclusion is that we have much further to go, but don’t expect a great deal more precision than that. Oh, and don’t forget that we’ll endure some huge corrections along the way. (Guthrie, 2007) Much of the current discussion on commodity super cycles owes its initiation to

Buying Favor: Why Congress Depends on Funding From Special Interests Es

There is a problem with Congress. The previous sentence summarizes the collective sentiment of the general public concerning the legislative branch of the federal government. A 2010 Gallop poll revealed that over eighty-nine percent of Americans have no confidence in Congress (Lessig 2). It is theorized that Congress is so far out of favor because it has been unable to resolve the nation’s most important issues, such as Medicare, Medicaid, immigration reform, and the growing budget deficit, due to seemingly trivial reasons. Some theorize this lack of significant legislative action is due to growing partisanship between the system’s dominate political parties, the Democratic Party and the Republican Party. According to Mark Brewer, â€Å"Politicians†¦are more likely to support their party and oppose the other party today than any other time since the 1950s (219).† Another hypothesis explaining the lack of legislative action by Congress is the special in terest theory. According to the theory’s advocates, the Congress has not accomplished much because of the institution’s dependency on large-scale campaign contributions; and these donors would rather there be little regulation or regulations supporting their specific industry. To support this hypothesis, Harvard University law professor Lawrence Lessig authored Republic, Lost: How Money Corrupts Congress–and a Plan to Stop It in 2011. The book details the effect of campaign funding by special interests and its effect on congressmembers and government policies. Within Republic, Lost, Lessig attempts to draw interest to the issue he believes is the reason for the federal government’s inactivity: dependence corruption. He argues congressmembers have become unresponsive to the will ... ...ed States Trade Representative. â€Å"Statement by U.S. Trade Representative Ron Kirk on Congressional Passage of Trade Agreements, Trade Adjustment Assistance and Key Preference Programs.† Web. 4 May 2012. . â€Å"Public Support for Increased Trade, Except With South Korea and China.† 9 Nov. 2010. Pew Research Center. Web. 4 May 2012. Tea Party Platform. â€Å"Ten Core Beliefs of the Modern-Day Tea Party Movement.† 2011. Teapartyplatform.com. Web. 4 May 2012. . United States Bureau of the Census. â€Å"Income, Poverty, and Health Insurance Coverage in the United States: 2010.† By Thom File and Sarah Crissy. May 2010. Census Bureau. Web. 4 May 2012. .