The Monetary And Fiscal Policies Of Portugal Economics Essay

The Monetary And Fiscal Policies Of Portugal Economics Essay I. Introduction: Portugal macroeconomic situation before the crisis. Despite economic and financial crises seem to be regarded as unusual and rare, in reality they are common events. Particularly, Portugal has already seen its worst financial crisis in 1891. This crisis led Portugal to abandon the gold standard and the country was banned from borrowing in international financial markets during 20 years (Lains, 2007, p. 485). Since then, Portugal has radically changed, however, its weakness in facing the crises has remained. During the last economic and financial crisis that started in August 2008, the Portuguese economy was caught in the middle of a period of adjustment during which was already facing up to the need to correct its fiscal and external imbalances within a phase of low growth with pro-cyclical policies (Torres, 2009, p.55). This period started in the second half of 1990s with the accession to the Economic and Monetary Union (EMU) and was characterized by an economic boom which was followed by a slump. As a matter of fact, Blanchard (2007, p.1), two years before the crisis, stated that the Portuguese economy is in serious trouble: Productivity growth is anemic. Growth is very low. The budget deficit is large. The current account deficit is very large. Although, from 1995 to 2001, Portugal was in a catching-up phase benefiting from positive wealth effects of EMU (lower interest rates which supported the increase of the domestic demand), the current account deficit rose drastically and the unemployment rate fell to about 4% (figure 1). The reason behind the increase in the current account deficit was, indeed, the low level of unemployment which boosted the nominal wages to increase more than the labour productivity provoking a huge raise in unit labour cost and a decline in competitiveness. Moreover, the indebtedness of households and non-financial enterprises was increasing because of the elimination of the exchange rate risk, the access to the euro bond market, and the lower interest rates, both nominal and real, set by the European Central Bank (Blanchard, 2007). As result, from 2000 to 2003, savings dropped and investments increased, therefore the current account deficit slightly decreased. The Portuguese economy slowed down and then contracted in 2003. The subsequent slump was the result of the large imbalances built up during the phase of boom. For instance, the high levels of consumption were not counterbalanced by the supply which had to deal with low productivity growth and increasing unit labour costs. As a matter of fact, figure 1 shows a combined upward trend of unemployment and current account deficit between 2003 and 2005, and the attempt to reverse it through the budgetary consolidation process re-assumed by the socialist majority government elected in 2005 (Blanchard, 2007) (Torres, 2009). To sum up, table 1 and table 2 offer an overview of the macroeconomic imbalances during the phase of the boom 1995-2000 and the one of the slump 2001-2007. Table 1. Macroeconomic evolutions, 1995-2001. Source: Blanchard (2007) Table 2. Actual and projected Macroeconomic evolutions, 2001-2007. Source: Blanchard (2007) The growth rate was rather high in the timeframe 1995-2000, then, since 2001 it started falling in the subsequent years. The current account and the budget surplus were in deficit over the whole observed period and the productivity growth started to be very low since the year 2000 causing the raise of the unit labour cost. It was important to describe the macroeconomic situation of Portugal prior to the crisis in order to explain, in the next sections, how those problems have been aggravated since 2008. In fact, the phase of slump was prolonged by the financial crisis occurred in 2008. II. Policy Responses Prior to analyze the European and Portuguese policy responses to the major financial crisis that the whole world is facing since 1929, it is essential to point out what kind of crisis our society is dealing with. The main cause of the crisis may be ascribed to the crisis of derivative market in the United States. In particularly, it started from the so-called subprime mortgage crisis which was the result of a speculative bubble in the housing market in the United States. Starting from the United Stated, it has spread by causing ruptures across many other countries in the form of financial failures and a global credit crunch. The main (systemic) Portuguese banks seem not to be particularly exposed to the so-called financial toxic assets and, unlike in Ireland or Spain, there was no speculative bubble in the housing market in Portugal nor is there a subprime segment in the credit to the housing sector. (Banco do Portugal, 2008 as cited in Torres 2009) However, according to Torres (2009, p.56): Portugal, a small economy fully integrated in economic and financial terms, is particularly affected by the global financial crisis and economic recession. This is not so much due to the international exposure of the Portuguese banking sector (the Iceland syndrome) but primarily to the countrys long protracted correction of its fiscal and external imbalances, which worsen its creditworthiness and aggravate the costs of servicing the debt and the countrys perceived risk of insolvency (an Argentinean type of problem, without the risk of a currency crisis as long as the eurozone remains in place). One of the main consequences of the financial crisis was, indeed, the credit crunch. During the last decades, the European banking system has changed from a system where the bank was the intermediary for investments between families and factories, into a new system where there are large money-centre banks which play the role of the intermediary amongst regional banks, in other words, they distribute funds among regional banks. The banking crisis has occurred in Europe because of two related reasons. The large money-centre banks that provide the backbone of the inter-bank lending market are undercapitalised. With their low capitalisation, they are vulnerable to even small swings in market conditions. Any liquidity problem, thus, turns almost immediately into a solvency problem. Because of this vulnerability they did not trust each other, thus paralysing the inter-bank market. 2.1 European Policy Responses For the Euro-area countries, the monetary policy is unique and conducted by the European Central bank (ECB). Since the atmosphere of mistrust, caused by the crisis, was no longer confined to the interbank market, but it was also spreading among ordinary citizens and consumers, the European policy-makers figured out that one possible solution was to put into effect measures which contain two elements in order to restart the interbank lending: support for the liquidity management of banks and bank re-capitalisation. The first element concerns the extraordinary measures taken at European level and the second one the bank rescue measures adopted at national level. As a matter of fact, firstly, the ECB has been reducing the rate for its main refinancing operations from 4,25% to 1,5%, in the timeframe October 2008 March 2009, in order to prevent contagion by providing short-term liquidity support on the interbank markets. Such interest rate cuts have provided significant relief to the highly indebted Portuguese economy (Torres, 2009). However, if Portugal could have managed the monetary policy on its own, probably it would have set a lower interest rate which combined with the initiative for strengthening financial stability (discussed in detail in the next section) could have led to the reestablishment of bank lending standards at pre-crisis level. In other words, the upward trend of the credit diffusion index, starting in the last quarter of 2008, could have continued to increase instead of contracting in 2009 (figure 3). Moreover, a dramatic reduction in real interest rates is the main channel through which fiscal consolidation can increase demand in the short run. Since this is not the case for Portugal, as the nominal interest rate is determined for the eurozone as a whole, while a deficit reduction is needed, it would be unwise to expect it to lead, by itself, to higher demand and lower unemployment à ¢Ã¢â€š ¬Ã‚ ¦ or à ¢Ã¢â€š ¬Ã‚ ¦ to a boom in investment, and through capital accumulation, to a substantial improvement in competitiveness (Blanchard, 2007, p.8-9). Secondly, the ECB has promoted coordination and cooperation between national supervisors through the European System of Central Banks Banking Supervision Committee. As result, the promoted cooperation engaged both the Euro-area and the European Union (EU) in an expansionary coordinated anti-cyclical fiscal stance (Torres, 2009, pp. 56-59). To further improve the EU coordinated approach, the European Commissions response was to launch the European Economic Recovery Plan (EERP) whose strategic aims is to avoid a deep recession by promoting a counter-cyclical macro-economic response to the crisis in the form of an ambitious set of actions to support the real economy. The plan consisted of an immediate budgetary stimulus amounting to 1.5% of EU GDP, a number of priority actions, grounded in the Lisbon Strategy, and designed at the same time to adapt our economies to long-term challenges, continuing to implement structural reforms aimed at raising potential growth and a set of EU guidelines to be followed by the member States (European Commission, 2008). According to Bà ©nassy-Quà ©rà © et al. (2009, p.39), out-of-ordinary methods are used in a financial crisis because: the traditional transmission of policy rates to lending rates is hampered by the dysfunctional state of money markets. This happens at two levels: first, the interbank rate (the rate at which banks lend liquidity to each other) diverges from the central banks policy rate because banks fearing counterparty default price risk accordingly; second, the spread between the commercial banks lending rate and the interbank rate increases both because of higher risk premiums and because banks seek to increase their profits. According to Meier (2009, p. 6), a switch to unconventional policy may be motivated by the severe turmoil in credit markets. With the financial sector in crisis, policy rate cuts are not only constrained by the zero bound, but may also be less effective than during normal times. The reason is the sharp tightening of credit conditions, as lenders have curtailed loan supply and certain sources of capital market funding have all but disappeared. Indeed, such dislocations can provide a rationale for launching unconventional policies even before interest rates hit the lower bound. In sum, unconventional monetary policies serve both as a complement and as an extension of standard operations centered around the setting of short-term interest rates. One of the unconventional actions is the so-called outright asset purchase, a technique to decrease the discrepancy between interbank and lending rates. Furthermore, Meier (2009) provides a categorization of such operations, distinguishing between qualitative easing, as sterilized interventions that do not involve an increase in the central banks balance sheet, and quantitative easing, as unsterilized interventions implying an increase in base money. Unlike the US and the UK, in the Eurozone the direct purchase of government debt instruments is forbidden by art. 101 of the EC Treaty, therefore quantitative easing is not contemplated. Figure 2 shows how liquidity provisions and out-of-the-ordinary policies, adopted by ECB, Federal Reserve (FED) and Bank of England (BOE), increased the size of the central banks balance sheets. Assets hold by the ECB are about 50% lower than FED and BOE because they executes quantitative ease operations (Bà ©nassy-Quà ©rà © et al. 2009, pp. 42-44). 2.2 Portuguese Policy Responses With the financial crisis Portugal has re-focused its economic policy from budgetary consolidation to an anti-cyclical budgetary policy effort to support households, investment, employment and, last but not least, to strengthen financial stability (MFAP 2009 as cited in Torres 2009). At the end of 2008, to guarantee stability of the financial system and to safeguard the households deposits held by credit institutions, the Portuguese government, following the trend of the other member states, decided to save two banks: the Banco Portuguà ªs de Negà ²cios (BPN) and the Banco Privado Portuguà ªs (BPP). In particular, BPN was nationalized and BPP was granted a guarantee for a bank loan provided by a group of banks. Although the dimension of those banks was small, the government feared that the potential loss incurred by many small depositors could generate a run of bank depositors in general, putting at risk the stability of the financial system (Torres, 2009, p.61). The second measure to strengthen financial stability was taken in October 2008 when the Portuguese Ministry of finance and public administration announced the endorsement of the Initiative for strengthening financial stability (ISFS) in order to respond to the substantial external shock, to which it was being subject, due to severe liquidity restrictions in international financial and money markets. The ISFS was aim to enhance conditions for credit institutions access to liquidity in financial markets and was based on granting State guarantees for the financing of credit institutions. According to MFAP(2008), this Initiative: (i) Enhances the confidence in the domestic financial system; (ii) Permits timely intervention adapted to market conditions; (iii) Is temporary, remaining effective only while market conditions have not returned to normal; (iv) Safeguards the interest of depositors and taxpayers; (v) Allows the shareholders and managers of banks to be held accountable whenever necessary and fosters the adoption of good corporate governance principles, in accordance with best international practices; (vi) Safeguards the interests of the market in general and a level playing field among competitors, in particular. According to Torres (2009, p. 60), the aim of the coordinated guarantees on new issuance of bank debt was to address funding problems of liquidity-constrained but solvent banks. Thus, this initiative was a viable and less costly source of funding to allow banks to issue new debts. A third measure was to take advantage of the increased flexibility of the Stability and Growth Pact (SGP) to pay outstanding state debts under the form of a program for the extraordinary settlement of the states debts to suppliers (Council of Ministers Resolution no. 191-A/2008 of 27 November as cited in Torres 2009). However, in my opinion the results of those initiatives were rather limited. I can, indeed, argue that, in Portugal, bank lending standards are tightening. In support to my opinion, figure 3 provides an evidence: the largest observed swing occurred from the last quarter of 2007 to the last one of 2008 when the diffusion index dropped sharply to the minimum observed value, representing the credit crunch. To evaluate the effects of the ISFS it is sufficient to look at the trend starting from the last quarter of 2008, the upswing lasts for only a quarter to stabilize at the level of about minus 45% compared to the pre-crisis conditions. The 19th of January 2009, the Portuguese government updated the Stability and growth Program for 2008-11. Following the EU guidelines concerning EERP, the government incorporated in the SGP program the Investment and Employment Initiative Program (IEIP), as fully consistent with the National Reform Plan for 2008-2010 (within the framework of the Lisbon Strategy), as it also aimed at contributing to addressing the countrys structural weaknesses. The draft law creating the IEIP was composed of five structural measures including several projects or actions to support households and businesses next to those aimed at combating the rise in interest rates and in the price of raw materials and food products and credit restrictions, which had already been envisaged in the state budget for 2009.. The IEIP was expected to have a budgetary impact of about 0.8 per cent of GDP in 2009 (about 0.5 increase in expenditure and 0.3 reduction in revenue in percentage of GDP). The five measures were: modernization of schools; fostering renewable energies, energy efficiency and energy transmission infrastructure; modernization of technological infrastructure and new generation broadband networks; special support to economic activity, exports and SME; protecting employment and strengthening social protection (Torres, 2009). 1). Higher investment in human capital help to avoid the risk of depression of productivity performance. In Portugal the educational attainment of the working-age population is low and the intergenerational educational mobility has been sluggish. Furthermore, the international student performance survey (PISA) shows that Portuguese students are below the OECD average (figure 4). To increase efficiency, the smallest schools have been closed and changes to the teachers timetable are allowing a more efficient allocation of human resources. Moreover, upper-secondary education has been diversified to incorporate technical and vocational courses (OECD 2009). and 3). Portugal might take advantage of the temporary increase in spending under the recovery plan to promote a leap forward to new competitive green goods and technologies. There is a clear case for the world, and for the EU to maintain its leadership in the process, and even more so for a small country like Portugal, to address climate change and the financial crisis at the same time by building up a competitive basis for sustainable development (Torres, 2009, p.66). Activity collapsed at the end of 2008 under the weight of the global economic crisis. The huge decline in external demand was caused by the falling activity in a number of Portugals major export markets, particularly Spain which accounts for about 25% of portuguese total exports. Moreover, insufficient harmonization of regulations with major trading partners seem to have impeded trade, particularly in services. Despite the governments announcement of additional revenue measures the deterioration in economic activity without further reductions in government outlays, or a more rapid economic upturn, means that the budget deficit could rise above 4.5% in 2010 and to increase further in 2011. The deterioration in economic activity was partly caused by the administrative burdens on business. Starting, running, and closing a business have been hampered by onerous regulation, including a cumbersome licensing regime that has weakened competition and, thus, productivity growth throughout the economy (OECD, 2008, 2009a, 2009c; European Commission 2009). Figure 5 provides evidence that Portuguese burden on business in the form of regulation are higher than EU average. Productivity growth has been sluggish during the last decade, lagging behind the OECD average with a decreasing trend since 1990 (figure 6), partly on account of labour market rigidities such as high employment protection and insufficient human capital accumulation. Those weaknesses have led to a further widening of the large productivity gap with respect to the Eurozone. The protection of workers against individual dismissal has been the most restrictive in the OECD, with very cumbersome procedures, as clearly highlighted in figure 7. The new legislation put forward by the Portuguese government is aimed to significantly simplify dismissal procedures. However, protection of regular workers against dismissals will remain more restrictive than in the average OECD country. Therefore, it is essential to enforce the reform measures because tighter credit conditions, weak exports, and subdued internal demand depressed business investment in 2009 and led to a labour shedding and an increase in the unemployment rate which is projected to reach a double-digit rate in 2010 (OECD , 2008, 2009c; European Commission 2009). According to Blanchard (2007), Portugal is today in a scenario of Competitive disinflation, defined as a period of sustained high unemployment, leading to lower nominal wage growth until relative unit labor cost have decreased, competitiveness has improved, the current account deficit has decreased, and demand and output have recovered. If we look at the Real Effective Exchange Rate (REER) of a country, an instrument which can be used to assess price or cost competitiveness relative to the position of the countrys principal competitors, it is easy to notice that Portugal has substantially lost competitiveness against Germany since 1995 (figure 8). A rise in the index means a loss of competitiveness taking into account productivity changes via the movement in comparative unit costs (Hugh, 2009). Therefore, as this trend is going on since 15 years it is hard to invert it without huge efforts and structural reforms. In the context of the budgetary policy, in 2008, Portugal has also taken action to reduce taxes through the cut of one percentage point of the VAT rate, the creation of a general corporate income tax rate of 12,5% and the reduction of advance income tax payments for SME (State Budget, 2009). Nevertheless, the fiscal position has deteriorated significantly in 2009 reflecting weaker economic conditions, lower revenues and spending rises to support the economy. Fiscal stimulus measures focusing on public investment, support to companies and exports and social assistance will directly increase the budget deficit (OECD, 2009a, 2009b). Torres (2009, p. 65) argued that: In a small open economy like Portugal, fiscal policy has limited effectiveness with regard to influencing aggregate demand. This applies even more to the current environment of financial distress and uncertainty, where banks will try to de-leverage and households to save. Moreover, the Portuguese economy is already particularly exposed due to its fragile financial position, as reflected in its accumulated external imbalances, which puts at stake the markets confidence in the sustainability of public finances. Given the risks involved for the costs of servicing the debt and ultimately for its solvency and permanence in EMU, it seems essential for the government to credibly pre-commit to medium-term budgetary objectives. It thereby signals its determination to pursue fiscal consolidation in spite of the temporary stimulating measures adopted within the EERP and to ensure that those exceptional measures do not mark a departure from budgetary sustainability. Moreover, external debt has been high and rising (figure 9) and, thus, leading Portugal to become the third eurozone economy to undergo a long-term credit rating reduction, to AA minus, by Standard Poors because of its failure to tackle deteriorating public finances (Torres, 2009, p.64). Finally, last but not least, Portugal is undergoing a strong disinflation process which is highlighted by the fall of the Consumer Price Index to its minimum levels (figure 10). European Central Bank council member and Bank of Portugal Governor Vitor Constancio is aware of the danger and has indicated that the ECB is prepared to reduce borrowing costs further to prevent inflation slowing significantly below its 2 percent ceiling, even going so far, if necessary, as to introduce some variant of quantitative easing. He still thinks it wont happen, but he is well aware of the possibility, as indeed we all should be (Hugh, 2009, p. 21). To conclude, it is important to point out that the inflation is expected to be under the OECD average during the whole 2010 to catch-up with the OECD countries after 2011 (figure 11). Furthermore, the danger of the risk of disinflation is real as shown in figure 12, where the harmonized index of consumer prices is expected to remain below the ceiling of 2% during the whole projected period. Conclusions: What should be done? The policy responses analysis has highlighted serious structural problems for Portugal and, as a matter of fact, Portuguese growth is expected to lag behind the OECD average during the whole 2010 and 2011 (figure 13). SUM UP PROBLEMS In fact, despite Portugal has made significant progress in fiscal consolidation and has launched important structural reforms to modernize the economy and enhance growth, in my opinion, additional structural reforms, in order to find a way out from the crisis, are still necessary, notably, in the following areas: Education The secondary education attainment should be improved since human capital represents one of the main durable determinants of growth in the long run. Moreover, reforming the educational system might enhance productivity performance. According to OECD (2009c), the reform should increase the proportion of education spending on non-wage items, continue to strengthen teachers on the job-training and to develop vocational and technical education and, finally, Portugal should fully implement a performance-based evaluation and career-progression system for teachers. Employment One of the clearest examples of the problems highlighted by the crisis is to be found in the stagnation of the labour market. It is essential to reform employment protection legislation with proposals aimed at enhancing the adaptability of the labour force, to address rigidities in labour market regulations and improve the efficiency of active labour market programs; otherwise the strictness of the Portuguese employment protection will continue to have negative effects on growth and productivity (OECD 2009c). Moreover, the unemployment rate is expected to be higher than the OECD average during the next two years (figure 14). Concerning the slow productivity growth problem, Blanchard (2007, p.8-20) suggests a decrease in nominal wages. Even if it sounds exotic, it can substantially reduce the employment cost of the adjustment. However, in Portugal today, the labor law forbids unjustified wage decreases and in practice rules out decreases in nominal wages for economic reasons. Business A deepening of the reform process is required to create a dynamic business environment by reducing the administrative burdens on business. Despite the importance of the recent reforms, a full implementation of them is essential. Competition in the whole economy should also be strengthened through investment in key infrastructure sectors, such as telecommunications, electricity and transportation, to enhance the quality, efficiency and quantity of the services they provide. This would have a direct effect on the cost-competitiveness of firms in Portugal, facilitate trade flows, domestically and internationally and make Portugal a more attractive destination for FDI, which has the potential to boost productivity (). Finally, OECD (2009c) recommends to harmonize regulations with major trading partners, including service sector standards and qualification requirements. Tax system A reform is necessary to simplify the tax system, broaden the corporate tax base and decrease tax expenditures in order to reduce fiscal imbalances. Designing and implementing fiscal consolidation remains a priority for Portugal because the deficit needs to be reduced. Silva (2008) provides empirical evidence that, in Portugal, taxes negatively affect productivity because an increase in the taxes decreases consumption, capital, output and welfare. Moreover, he states that for Portugal taxes are able to predict the pattern of the labour supply over the years. Therefore, the government should take into consideration how a tax system reform might serve a double objective: raise the productivity and reduce fiscal imbalances. Nevertheless, à ¢Ã¢â€š ¬Ã‚ ¦ Table 3. Actual and projected Macroeconomic evolutions, 2001-2007. Source: OECD

Deviation from Social Code: Analysis of Characters and Theme of The Age of Innocence

Edith Wharton’s The Age of Innocence (1920) is a detailed depiction of social conventions and decorum of the high society of New York during the late 19th century. One of the central themes of the novel is the struggle of an individual inside a rigid society. Order, loyalty, tradition and duty are the values upheld by the society where Newland Archer grew up. He is a lawyer, engaged to be married to May Welland, raised to be a perfect wife and mother according to society’s standards (Wharton, 1998).These same rules and standards dictate that she pretends to be ignorant of her fiance’s feelings toward Countess Ellen Olenska. For a long time, Newland and Ellen had to sacrifice their desires and feelings in order to maintain order in society. Society in The Age of Innocence shapes and directs the life of an individual, sacrificing what they truly want and truly believe in. Society’s forms and conventions decide how one should think and behave. Society’ s primary agent of its laws is the family, specifically the old money families belonging to the high society New York.These are the families with inherited wealth which separates them from the lower class. Their wealth is an important dimension in stratification because it ensures the financial stability of the future generation of the family. Their â€Å"old money† allows them a luxurious lifestyle without having the need to work. The greatest manifestation of the importance of order is seen in family. It is the foremost duty of the individual to promote and protect the harmony of his/her blood and marital relationships.The family disapproved Ellen’s decision to divorce his husband despite his being abusive and cruel to her. For them, it was just natural to endure little sacrifices to maintain the family. By going against their principles, she became an outcast; someone who is pitiful. At first, Newland was hesitant to be associated with Ellen. She has a bad reputatio n and he wanted nothing to do with her. However, the family expected him to help bring Ellen out in the public so he was forced to enter the Mingott’s opera box and introduce himself.And of course eventually, they hide their true feelings in fear of hurting their family. Following this duty to the family and society, a code of morality dictates the actions and thinking of the individual in whatever aspect of his/her life. May informed Newland of her passion by letting him guess that she â€Å"cares† for him as this is the only way a love of a young unmarried woman should be declared. She must conform to society’s perfect portrayal of a young maiden ? sexually innocent and ignorant on matters about affairs and passion (Barker-Benfield, 2000).She was fist seen with white lilies in the valley, unaware of sexual implications of the scenes in the play she is watching. Later in the book, it was established that from the start she was aware of Newland’s feelings towards the Countess but she chose to remain silent and follow the code of ignorance. Despite this knowledge, her wedding at Grace Church must continue to maintain the order on how things should be done. Newland has his own list of socially mandated duties according to Lawrence Lefferts and Sillerton Jackson, expert on manners and expert on family matters, respectively.Order in society is maintained through these rarefied practices to continue the continued existence of the civilization. The social code is strictly enforced by society which compromises the personal freedom of the individual (Charles, Davies & Harris, 2008). Sometimes a family member has to let go of his/her personal wants and follow the decision of the family to avoid economic and political sanctions. Newland and Ellen could not pursue each other in order to maintain their social integrity. Even a simple walk together cannot be done without arousing suspicion.To be divorced to a husband is frowned by society eventh ough that husband treats you badly, go out with other women even men. Her family wanted her to seek reconciliation with her husband in order to reaffirm the values of society. When she refused to do so, they cut off her allowance as a consequence for her decision. In the end, Ellen chose to maintain her individuality by leaving America, a price she had to pay. She was forced out of New York, condemned by her own family, who believed that she and Newland are having a secret affair.Newland defended the right of Ellen to be with another man: † ‘I'm sick of the hypocrisy that would bury alive a woman of her age if her husband prefers to live with harlots†¦ Women ought to be free – as free as we are,' he declared, making a discovery of which he was too irritated to measure the terrific consequences. † (Wharton, Book One, Chapter 5, p. 35) He condemned the double-standard prevalent in the society where a man can seek sexual pleasures outside a failed marriage but the woman cannot.He may have progressive views but he was unaware of their implications in his own very traditional marriage. But these codes exist not without loopholes. Those who found these loopholes are often despised but still accepted in the society. Hypocrisy is common and rampant in Old New York high society. Families attend balls and gatherings hosted by the same person they contempt for being so common who they would gladly exile following the collapse of his business. Lawrence Lefferts claims to be an expert in Christian virtues while snubbing Ellen for being a divorcee.Newland is aware that if he leaves May for Ellen, society’s sympathy will pour for May. She told Ellen of her pregnancy despite being unsure of it to drive her away from Newland. She was aware of Newland’s passion for Ellen but did not say anything. This society, with its rigid rules and conventions, was challenged by the arrival of a new society symbolized by the Beauforts and Countess Ellen Olenska. Though they were not successful in blending and harmonizing with the old society’s tradition, they opened new possibilities of otherwise closed-minded individuals.Towards the end of the novel, it became clear that a new order has taken over with fresh ideas and movements. They began to consider and attribute importance to different things such as interesting and artistic people. There was an obvious change of attitude to people like the Beauforts. Beaufort’s illegitimate daughter, Fanny, and her marriage with Dallas Archer were not objected by society. In fact they were fond of her bright personality. Society did not post any obstacle to Newland and Ellen being together but Newland was so stuck in the past that he failed to recognize that time has changed.

The Globalization of Culture - 1139 Words

The term â€Å"globalization† has been used more frequently in the late 20th century, and along with it is the ongoing development of trade, urbanization and the sharing of knowledge (Wikipedia). The constant rotation of the source of goods, knowledge, new ideas and the explosion of information technology and mass media has brought cultures into contact with each other. As an inevitable consequence, globalization has created an impact on culture, causing changes in three main aspects which are traditional values, human behavior and other forms of art and entertainment. First of all, globalization creates an alteration in different cultural values. Through an international information network made possible by globalization, we proceed to†¦show more content†¦Worldwide integration does not only affect the behavior of the consumer, but also changes habits which have implicitly become characteristic and customs. For example, the traditional culture of Italian coffee has more or less changed after the occurrence of Starbucks in Italy. The link between the Italian and the diverse, unique sidewalk coffee shops has been longstanding, becamoming a part of the life style of Italian people (â€Å"Globalization and Global Culture†, n.d.). Globalization makes peoples lives become busier, modeled coffee shops like Starbucks introduced take-away coffee, which can be brought to almost every places. As a result, people moving constantly and with the support of convenient products and quick meals offered by McDonalds, Coca-Cola or Starbucks, they spe nd less time making contact with people around. Apparently, globalization has transformed the culturals habits into a uniform industrial lifestyle. Lastly, art, an important aspect of culture, is also influenced by globalization. One of the consequences of globalization has become familiar is the proliferation of pop culture overpowered traditional art forms. The products of the film industry and American music has proved its superiority in the market. In 1998, 79 percent of English-speaking Canadians named a U.S. program when asked to identify their favouriteShow MoreRelatedGlobalization And Culture1089 Words   |  5 PagesGlobalisation is an interesting concept, especially considering the way it allows for more and more cultures to communicate with each other. With this communication, cultures is able to stretch its impact on the world society as a whole. The way globalisation affects many cultures through the interweaving of all different sorts of cultures. Though with a growing connection, there is an impact on culture regarding the environment, and the â€Å"Stewardship of Natural Resources†. Globalisation plays a largeRead MoreParadoxes Of Culture And Globalization1185 Words   |  5 PagesParadoxes of Culture and Globalization What is a culture and why are there so many definitions of a culture? Does it matter? Is it rapidly changing? An how does globalization impact a culture? During my research I have found many definitions of a culture, but the most admired one that was mentioned by Martin Gannon in his book of Paradoxes of Culture and Globalization. He indicates that a culture is defined by two famous anthropologists, Alfred Kroeber and Clyde Kluckhohn, who have studied moreRead MoreThe Globalization of Food Culture1483 Words   |  6 PagesThe Globalization of Food Culture The term â€Å"food culture† describes the entire cultural landscape of nutrition; everything that has anything to do with the way we eat, what we eat and where we eat. What we seldom realize are all the aspects food influences or is influenced by: â€Å"Food is used to: 1. Satisfy hunger and nourish the body. 2. Initiate and maintain personal and business relationships. 3. Demonstrate the nature and extent of relationships. 4. 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Generally speaking, what are the advantages and disadvantages of globalization? |The development of globalization has changed the whole world in every aspect. Not only does it |å… ¨Ã§ Æ'Ã¥Å'â€"çš„å â€˜Ã¥ ±â€¢Ã¥Å" ¨Ã¥ â€žÃ¤ ¸ ªÃ¦â€" ¹Ã©  ¢Ã©Æ' ½Ã¥ · ²Ã§ » Ã¦â€ ¹Ã¥ ËœÃ¤ ºâ€ Ã¦â€¢ ´Ã¤ ¸ ªÃ¤ ¸â€"ç•Å'。å ®Æ'ä ¸ Ã¤ »â€¦Ã¥ ½ ±Ã¥â€œ Ã§ » Ã¦ µÅ½Ã¥â€™Å'| |effect the economy and politics, but the culture of different countriesRead MoreGlobalization and Culture Essay1217 Words   |  5 PagesGlobalization simply defined is the intensification of global interactions. The case studies we have studied depict two of the main types of globalization. Economic Globalization, which is the production, exchange, distribution, and consumption of goods and tangible services, and Cultural Globalization, the exchange of materials and symbols that represent facts, meaning values and beliefs. When Globalization occurs it usually has a major impact on indigenous cultures. Optimists or â€Å"champions† stateRead MoreAnthropology-Culture and Globalization1572 Words   |  7 PagesANTH101 Cultural Identities in a Globalized World All throughout our readings, lectures, videos, and textbook we learn the effects of globalization on the different nations we studied. I often felt sad for these nations because we were encouraging them to practice our traditions and therefore their personal identities and culture were lost. Other than to improve healthcare and poverty through medical care and education I could not find positive improvements. In fact it appearedRead MoreCulture Globalization and Its Impact on Recreation Culture1353 Words   |  6 Pagestwenty century until that day by globalization theory, its concept and future impacts . the scientists opinions had varied about globalization repercussions at rising countries including the Arab and Islamic countries . cultural globalization is one of globalization fields which correlated by cultural side , all life fields impacted by globalization , the sport field is one of fields which impact by social phenomenon what appear on societies , but globalization a ppearance and its effect on anyRead MoreGlobalization And Its Effects On Culture1087 Words   |  5 PagesGlobalization is commonly examined by simply dissecting its political and economic consequences. As a result, the effects on culture are often overlooked. According to U.S. Census projections, by 2043 non-Hispanic whites will become a minority consisting of 47 percent of the U.S. population (Barreto, et al 1). Examining the world as a whole, a 2015 study by the United Nations Department of Economic and Social Affairs/Population Division found that between 1950-2000, an average of 2.8 million peopleRead MoreGlobalization and Culture Change1865 Words   |  8 Pagessociocultural anthropological perspective, by investigating how globalization affects different parts of the world we can build a better understanding of how global structures affect social and cultural practices. Globalization is the worldwide interdependence of economic and cultural activities through the interchang e of worldviews, goods, beliefs, and other aspects of culture (Lalonde slide 22/01/13). To facilitate interdependence, globalization uses new technology, innovation, tourism, international trade

Why They Should Not Be Tried As Adults During The Justice...

and why they should not be tried as adults in the justice system. It also shows the actual differences in the brain of a juvenile and the brain of an adult. In an article in the New York Times called, â€Å"Juveniles Don’t Deserve Life Sentences† Gail Garinger explains why juveniles and adults are different. He states, â€Å"Young people are biologically different from adults. Brain imaging studies reveal that the regions of the adolescent brain responsible for controlling thoughts, actions and emotions are not yet fully developed.† (Garinger 93). I do not believe it is fair to treat a teenager the same as an adult knowing teenagers brains are not yet fully developed and do not possess the same level of neurotic connections. In some ways it is like expecting a child with down syndrome to act and behave the same as a normal child of the same age. Sending juveniles to jail not only hurts the juveniles themselves but it also hurts the American economy. In the articl e, â€Å"Children in adult jails; Juvenile Justice† by The Economist statistical data is displayed to show the affects of being tried as adults have on juveniles and the economy. Some may ponder and think how sending juveniles to prison would hurt the economy. According to the article, â€Å"It is costly: more than $31,000, on average, to incarcerate an adult for a year† (The Economist). Juveniles who are tried as adults and sent to prison fall under that price tag. It is incredible to think the federal government would spend $31,000Show MoreRelatedJuveniles Being Tried as Adults1328 Words   |  6 Pagesor teenager being tried as an adult has been a very controversial issue. When a juvenile commits a very heinous crime, many believe that that youth deserves to be tried as an adult, and given a full sentence. Some even believe that these juveniles deserve to go to adult prison. When a child kills, does he instantly become an adult? Or does he maintain some trappings o f childhood, despite the gravity of his actions? (Reaves Para 1). What draws the line between a juvenile and adult crime? SentencingRead MoreRaising The Age1517 Words   |  7 Pagesversus that of adults. During this time, juveniles, some young as seven years old could be tried and prosecuted within an adult criminal court. Children would have to stand for trial in court based on the offenses they committed, and could then be sentenced to prison and sometimes possibly even capital punishment. Is this form of justice beneficial to minors, or does it just obstruct their futures? Children, as young as the age of seven faced many challenges while they were held with adult criminalsRead MoreThe Main Aim Of Eradicating Criminal From The Society1439 Words   |  6 Pagesthis setting should be eradicated regardless of their age and made responsible for their actions. Releasing murderers, rapists, and other criminals from jail after serving a lenient and short sentence does not rehabilitate them in any way. In this regard, all those who are engaged in criminal activities that risk the life of the public should be held accountable for their actions. This paper will argue for the statement that juveniles should be tried as adults. However, the decision should be based onRead MoreTrying Juveniles as Adults1404 Words   |  6 Pagesit comes to trying juveniles as adults, it is a strong issue to follow through, but it has been a controversial topic to the public. This topic is a controversial topic even considering that there are numerous arguments to put forth on bot h sides. There will be stated pros and cons of each side and articles to back up the arguments. Juveniles are defined as children who fall under the age of 18, depending on the state. Even though, some juveniles are tried as adults despite their under age. In thisRead More Juvelines Tried as Adults in Court Essay834 Words   |  4 PagesJuvelines Tried as Adults in Court Since the beginning of time justice officials have been faced with a difficult decision should juvenile offenders be given smaller sentences because of their age. Today officials still are having trouble with this situation. Some experts believe some offender should be tried as adults , others believe no juvenile offenders should be tried as adults and some even think all should be tried as adults. My opinion Juvenile criminals the way all offenders should be triedRead MoreBad Kids Race And The Transformation Of Juvenile Court1649 Words   |  7 Pagescurrently have a grapple hold on our juvenile justice system. Barry Feld is one of the nations most respected scholars of juvenile justice and currently teaches the subject, amongst other things, at the University of Minnesota. Feld himself graduated from law school at the University of Minnesota and later received his Ph.D. in sociology from Harvard. This book’s main proposal is that there is a blatant contradiction in the way that the juvenile justice system is carried out. Throughout the book, FeldRead MoreThe Juvenile Court System Should Be Abolished1489 Words   |  6 Pagesbe held accountable for their actions, are not yet fully developed, and can rehabilitate easier than adults. In all but three states, anyone charged with committing a criminal act before his or her eighteenth birthday is considered a juvenile offender. Now more than ever, states and countries have begun to question the reliability of the juvenile court. Some believe the juvenile court system should be abolished because of its insufficient gain to the community. Others believe children are not fullyRead MoreEssay on Juvenile and Adult Courts1740 Words   |  7 PagesJuvenile and Adult Courts: A Comparative Analysis Zanetta Eave, Tasha Harris, and Lee Blackmon CJA/374 July 29, 2013 Cory Kelly Introduction The â€Å"Juvenile and Adult Courts: A Comparative Analysis† paper will compare juvenile courts with adult courts. This paper will present an overview of the juvenile justice system, a point-by-point comparison between juvenile and adult courts. The adjudication process by which a juvenile is transferred to the adult court system. This paper will also discussRead MoreEssay on Juvenile Offenders699 Words   |  3 PagesJuvenile Offenders Should Juveniles be waived to adult court Philosophy 14 Nov 98 Should juveniles be waived to adult court. There has been tension between teens (pre-teens) and adults for thousands of years, and the question how to deal with the youth of a culture, in a punishment sense, has been with us for just as long. Socrates, for example, stated that children show little respect for there elders. Since Socrates time largely due to the spread of guns and drugs, younger and younger childrenRead MoreTeens And The Contrivenation Program In The Juvenile Justice System1138 Words   |  5 Pagesto the negative self-label of drug abuser. This program didn’t have many restorative aspects to it. Diversion programs for juveniles should be separate from juveniles who need support to fix a drug addiction problem. Both the community based programs and the diversion programs would be better alternatives for juveniles who have the possibility of being waived to adult court. Community based programs help teach the juvenile the harm they have caused to other people, and diversion incorporates the idea