Wednesday, December 4, 2013

Tragedy on Commons

According to Susan J. Buck, the study of the reasons behind tragedy on commons are meaningful as we can learn a lot from it (Buck 1995). There are different viewpoints about the reasons behind the tragedy on commons. And in the following passages the author is to discuss some viewpoints about the reasons behind the tragedy on commons, basing on which the author make clear his own standpoint and discuss the practical meaning of studying the reasons behind the tragedy on commons with an example.
What are the reasons behind the tragedy on commons? Hardin, who should be the first authority studying these reasons, observed that the tragedy or decline of the commons resulted from the unlimited access (Buck 1995). However, this viewpoint was denied by Buck who pointed out that tragedy or decline of of the commons was not the result of unlimited access, but rather was the result of the historical forces of the industrial revolution, agrarian reform, and improved agricultural practices, as usually the commons were managed under the restrictions of regulations, though there might be violations of these regulations and abuses of the commons (Buck 1995).
Buck wrotes:
The increased productivity was often touted by land reformer as proof of the evils of the commons system. However, the change was the result of many factors, and not just of enclosure. Some of the increase would probably have occurred without enclosure, ...Enclosure took the better land and subjected it to the new and improved methods of agriculture....Improved roads and transportation facilities made marketing easier, ...(Buck 1995)
So, it is clear, according to Buck, that the main reasons that led the decline of the commons did not come from the commons system itself. Why so many people insisted that the reasons behind the decline dated from the commons system itself? From Buck (1995) it can be decided that one of the important reasons was that many people were driven by their own interest, which they could not tell others and which needed to be covered by excuses.
The author agrees with Buck’s viewpoint and thinks that what Buck told us is meaningful to our real lives, because Buck’s viewpoint are reasonable, illuminating, and thus can be applied to explain social phenomenon. Referring to Buck, the author considers that the reasons behind the abnormal high prices of houses in mainland China is also a typical example of Tonypandy. Many people, especially businessmen from the field of real estate, deem that the high prices are caused by great demands and lack of land in China. Referring to Buck (1995) , the author observes that these people are fooling common Chinese people in order to obtain their one interest. It can not be denied that there are countries in the world where people own less land per person than in China. Before 1990s, house prices were not high at all in China. It is reported that Chinese people own 36 square meters of housing per person, which has outnumbered many developed countries and as a result, there appear many ghost cities in China. These facts tell us that the so-called reason for  high house prices offered by these businessmen from the field of real estate is not reasonable at all and this reason is touted because of great interest these people want to grab.
In a word, understanding the true reasons behind the tragedy on commons has great significance to our real lives, which is conducive to the interest of common people and to the development of our society.

China's Industrialization and the Depletion of the Commons

Estefania Velez
December 4, 2013
GVPT

            Throughout the decades China has evolved into one of the most industrialized and wealthy nations in the world. They take the lead with about 19% of the world’s population all living in the southern half of Asia. These things however, come with negative consequences. China may be well known for having many factories, but it is also known for having the greatest environmental issues in the world. In his article “The Tragedy of the Commons”, Hardin argues that free access to non-permanent resources that are needed for survival (e.g. oceans, the atmosphere) will end up affecting humanity as a whole because these sources will quickly diminish if they are not regulated wisely.
            China is a prime example of this because although industrialization has provided a large boost in their economy, the smog levels in Beijing alone surpass the levels that the World Health Organization declares hazardous. The amount of cars that travel through that city alone and the factories that let smoke out every day are enough to affect the atmosphere in ways that will end up hurting the us in the near future. In a way, pollution goes hand in hand with excessive energy use because every steel factory that causes the smog in the air uses and takes up large amounts of energy from natural resources.  Hardin claims that we try so hard to be independent and successful that we end up “fouling our own nest” without realizing that we are doing nothing but setting ourselves up for failure (349).
            Hardin also believes that over-population is one of our greatest flaws because everyone is born believing that we have unlimited rights to the commons therefore making us take them for granted. China is known for having the largest population in the world and although they limit each family to having only one child, that does not take away from the fact that as any population enlarges, chemical and biological recycling begin to overload, more welfare laws need to be created, and people become so caught up in their lives that they forget not to pollute the water and not to liter. What is worse is that not only are us humans hurting ourselves, we are affecting the wildlife and the habitats of many animals that live in the rivers and grasslands that are being contaminated and being cut down. In China, many of the rivers have become factory sewers and many of them cannot be purified for human consumption.
            Unfortunately, China is not the only country that has issues with global warming, pollution and all of the other consequences that come from depleting our natural resources. In the long run, this all interferes with international relations because there are nations who may not agree with China’s ways and could cease trade with them, or threaten them to set laws for their regulations. As Hardin describes these issues in his article, I begin to see what can happen not too long from now and it is time for the government to regulate the use of the commons and for people to speak up about protecting the world we live on because if we continue to follow China’s footsteps, there will not be a world to live on.

Yasemin Unal: Globalization


Yasemin Unal
Professor Mark Shirk
GVPT200FC

4 December 2013

            There is no denying that we are in an era of mass globalization. A time of interdependence on other states for the well  being of our own economic and social prosperity. Undoubtedly, globalization has had copious positive impacts on the states and citizens around the world, bringing opulence. Yet, one cannot be oblivious to the undesirable effects globalization has brought as well. My argument will be centered around the theme that with globalization there has been a loss of culture for states, there are increased ethnic clashes, and that it is an indirect relationship with environmental problems.
            To begin, globalization is slowly homogenizing the unique cultures around the world, forming a type of culture that is based off of consumerism and commercialization. This is creating an international society with the same values and desires. This may seem as harmless and even attractive, since the international community will have more in common. However, with globalization there is also the spread of unwanted social ideals. For example, with the spread of mass media commercialization around the world consumerism is becoming targeted around the unattainable ideals of beauty and thinness. I would argue that globalization is also spreading the American culture, causing the individual cultures of states to become diluted. For instance, English is slowly becoming the global language. While this is not necessarily a drawback for businesses and English speaking citizens, it does causes the individuality of national languages to slowly lose their importance for the younger population, who strive to become Americanized.
            Moreover, this weakening cultural factor that globalization brings causes more ethnic tensions, leading to more violence. This violence does not have to directly translate into war and mass murder. In fact, this tension can be relevant between citizens of different states or even citizens within a single, diverse state. Like mentioned in the book "How Soccer Explains the World", globalization often results in "hooliganism"  because of the loss of masculine roles, due to outsourced industrial labor. This hooliganism is translated into clashes between different ethnic groups. Like I mentioned previously, this violence can be present within a state with many different ethnicities ,or it can even transcribe over boundaries. One could also make the argument that the diluting of specific cultures causes the citizens of that state to feel an ontological threat, since it is their identity that is in danger. Thus, they resort to violence to defend their individual cultures and ethnicities against the threats they perceive.
            On a final note, globalization has an indirect role with increased environmental problems. This is due to the fact that, third world countries are being exploited for their natural resources and labor during the process of industrialization. In rapidly industrializing third world countries, there are no strict pollution laws that have been enacted. The overwhelming desire to industrialize as soon as possible, in order to be a part of globalization, has resulted in increased CFC pollutants that contribute to global warming. These industrializing countries know that with globalization, there is a link with economic affluence. Consequently, they do not put their priorities is producing outputs in a way that does not mass pollute.

            In the final analysis, globalization does have its negative impacts on the international community. Even though there are benefits, globalization causes the diminishing of diverse cultures, increased tensions due to loss of identity, and increased environmental problems.
Lauren Wilhelm
December 2, 2013
GVPT 200
Prof Shirk
Columbus: Courageous Discoverer of Worlds, or Self-Serving Maverick

                While some view Christopher Columbus to be an extraordinary hero and discoverer of new 
worlds, others see him as a manipulative, egocentric explorer out to fulfill his own goals even at the expense of others. Columbus is viewed as the father of the Americas, and expander of the world, yet most people don’t realize he was not as understanding and open-minded as many think. When children learn about Columbus in grade school, they hear of a great explorer who wanted to discover a quicker trade route to India. They also learn of the courageous man who sailed into uncharted waters when the world was thought to be flat, so he could sail over the edge at any minute. Upon further research however, it is revealed that Columbus was in fact a man of many contradictions with self-interested incentives and a superiority complex. His journals are additional proof that his interactions with the Indians were not honorable and acceptant, but were actually exploitative.  Although Columbus did set out on an unknown journey to make discoveries, upon arrival in the Americas he took advantage of the Indians and the resources around him and was not the hero explorer many Americans today believe he is.
            Christopher Columbus is a household name all throughout America, and while he did open up the Americas to colonization by happening upon them, he is not as wholesome and deserving of praise as is typically assumed. It is known that Columbus voyaged west in 1492 to find a more direct route to India for trade, yet he was much more imperialist than most people believe. It can be learned from his journals that upon landing in the Americas, he believed the land to be part of Asia and actually believed he landed where he intended. His interactions with the natives there, as recorded in his journals, reflect his imperialistic nature. During his interactions with the Indians who inhabited the Caribbean, he learned their names for the islands. Yet, he renamed them all and claimed them for Spain. In doing this he was also showing a complete disregard for their languages, and had no desire to learn the linguistics of the natives at all. Columbus took the same entitled approach to the resources the natives shared with him. He took and used as much as he could, believing he deserved it. He justified it by saying it was a sign from God that the resources were shown to him and because of that they essentially belonged to him and the Spaniards. He claimed everything for himself and Spain, and took advantage of the generous but naïve natives to accomplish this.

            Many believe that Columbus’s interactions with the natives were originally peaceable, however, even in the beginning he was not as well intentioned as most would think. On one of his first days there he writes to Queen Isabella about how the Taino people will make great slaves for trade and he will bring her as many as she wishes. Due to their generosity he believes they are perfect for the slave trade because as Columbus puts it, they can be made to do whatever you want of them. Columbus further writes to the monarchs on how if the Indians do not comply he will torture and kill them, all the while allowing his men to commit heinous acts such as rape and murder anyway. The entire time, Columbus justifies his actions by claiming he does all of this with the end goal of converting the Taino people to Christianity to save their souls. His pre-conceived notions that the natives are savages, causes him to have a complete disregard for their lifestyle and allows him to justify any actions he takes by claiming he is helping to progress them. Columbus uses his advantages of knowledge and power to take advantage of the natives of the Americas, and treat them with contemptible hostility. Although Columbus is taught to be the brave, noble explorer who discovered the Americas, he was actually a cruel, manipulative opportunist, who took advantage of the natives of the Americas and all of the resources they had to offer in order to advance his own objectives. 

Cosmopolitanism in an Era of Globalization

Shiran Zecharya
GVPT200
Blog #5

Cosmopolitanism in an Era of Globalization

            The past decade has allowed citizens from all parts of the world to feel both the blessings and burdens of globalization. The phenomenon has physically changed global politics by means of increased trade, interdependence, growth of the mass media, greater cultural acceptance and widespread technological innovation. As a result, new generations of citizens have begun to embrace a more cosmopolitan outlook on international politics where they are more willing to engage and sympathize with The Other and actively endorse the idea that all people are “citizens of the world” and that it is their duty to defend the rights of all people, not just individuals that live within the confines of their nation’s boarder.
            A growing number of critics, however, censure cosmopolitanism because they argue that it favors more powerful nations over less influential ones. Skeptics believe that more powerful nations such as the United States, China and Germany would have more say in the terms of the unity and global citizenship that cosmopolitanism entails than less influential states. This account, however, fails to take into consideration the fact that cosmopolitanism is not always a political ideology and formula for world order, but a shift in the way citizens of the world perceive each other. This change is a result, not of a newly unified world that skeptics of cosmopolitanism and internationalism depict with no political boarders, but a world where acceptance, understanding, and cooperation flourish throughout these boarders.

            While the overall impact of globalization may be difficult to assess, the effect of cosmopolitan mindsets is not. Society, as a whole, must learn to embrace this generation’s thirst for cooperation and desire to help all people of the world. As individuals, we must continue to deny excuses of patriotism and what is in our “national interest” as justification for taking a blind eye to the misfortunes and suffering of others, we must castigate all those who continue to use these excuses in the 21st century, because they are steering humanity away from progress and mutual understanding and toward divisiveness and brutality, and we must begin to adopt a more holistic definition of what makes us humans and abandon our nationalistic predispositions.

Monday, November 11, 2013

Lauren Wilhelm
November 8, 2013
GVPT 200
Prof Shirk

Risky Business: Manipulation of CDOs and the Housing Market Crash

            In his book The Signal and the Noise, Nate Silver looks into and analyzes the contributing factors for the housing market crash which led to the U.S.’s most recent recession. In studying the inner workings of banks, loan sharks, debt raters, NRSROs and so on, it can be discovered that their greed for money and overall ignorance led to them overlooking many warning signs on the housing crash, contributing to the crash in the housing market and recession. The corporate workers in these industries wanted so badly for the system to work because of the revenue it would bring in that they used confirmation bias, and built their statistical data and proof around their ideas so it would support them. This system of buying and selling debt may have seemed like a profit maximizing one in the beginning, but eventually the false premise it was built on was bound to catch up with it and take it all tumbling down.
The selling of default rates and securities is wrong for more reasons than the simple fact that the system failed. It was made more wrong by the fact that it was essentially gambling. Gambling with debts and the possibility of risk may seem exciting to those who can afford to lose money and take that risk, but when it affects the livelihoods of others who need these loans and depend on them, it is not okay. The system involved rating agencies predicting the probability that someone would default on a loan and they predicted the nations 5-year rate at .12%. This rate was considerably low so they saw only small risk and with that sold and allowed for the trade of debt backed securities and CDOs as if they were stocks. They tried to create a market for them because they saw the possibility to bring more investors in on something they didn’t think existed to sell in the first place. This prospect was propelled by greed and the hopes of Wall Street’s new and young associates. The only problem with gambling is it is almost always taken too far because no one knows when to quit, and eventually, you lose it all.
The statistical model these ratings were based on ended up being faulty in the end, and causing the whole idea to fail because it was based on assumptions and not historical data. In fact it caused the prediction rate to be wrong by more than 200%. Those in charge were unapologetic and did not take responsibility for their actions. Instead they claimed they were just unlucky and never could have foreseen the housing bubble. They continued to blame external forces never truly taking accountability for what they had caused. In essence they just passed the debt around and spread it out more so that they could continue to reap the benefits of being a big corporate laborer. They made assumptions using faulty world models and instead blamed the fallout on a faulty world.

This goes to show that Wall Street workers may not necessarily commit what is defined as white-collar crime, but they do take actions that have larger repercussions on the public and so they must be held accountable. There will always be greed in the world just like there will always be those who believe business should be left to itself and unregulated. However, something needs to change or else the rich will continue to get richer by manipulating the system by creating these entities that don’t really exist, and in the long run have huge fallout. 

Why did Lehman Brothers not get bailed out?


Jason ye

11/11/2013

GVPT200

     The financial crisis of 2008, which is also known as the Global Financial Crisis is considered by many people the worst financial crisis since the 1930s Great Depression. It resulted in bankruptcy of financial institutions, high rate of unemployment, collapse of the stock market and bailed out from the U.S government to some of the biggest financial institutions in the U.S. So why did the U.S government bailed out American International Group, Bear Stearns and nationalized Fannie Mae and Freddie Mac but did not help out Lehman Brothers and let it fail.

Frist reason, in my opinion, the U.S government bailed out American International Group instead of Lehman Brother is all about the impact on financial markets. American International Group is the largest insurance company in the world, it insures not just millions of people but also corporations around the world as well. It also insures millions of dollars issued by the financial institutions’ lenders and borrowers. If American International Group collapse, it will have a tremendous effect on those financial institutions that are insured by the American International Group, which may result in collapse of those financial institutions too. The American International Group is like an ignorant kid playing with matches, he could harm not only himself, he could have burn down the entire block, the Fed stepped in not just to save him but also save the entire block, on the other hand, Lehman Brother is more like a kid who pulls the tail of a dog and got attacked by the dog, himself is harmed by the dog but nobody is harmed because of that, so nobody really care about it that much.

Second reason I think why Lehman Brothers did not get bailed out by the U.S government is because its lacked collateral for a loan. During the 2008 financial crisis, before the Troubled Asset Relief Program (TARP) was established, it was illegal for the government to inject capital into Lehman Brothers. Unlike the American International Group, which had insurance addendum that can be evaluative, the Lehman Brothers lacks of ancillary resulted in the Federal Reserve deiced not to bail out Lehman Brothers. Lacked collateral is also a reason why the two potential buyers – Bank of America and Barclays decided to back out at the last moment. Also, there were concerns of “lending into a run”, some top government officers feared giving Lehman Brothers loan can cause its customers to flee away which will ensuring its bankruptcy.

The last reason why the U.S government did not bail out Lehman Brothers is that the risk to taxpayers is high, like Bernanke said, “Lehman's status as a going concern was "melting away" as trading partners pulled back from the firm amid questions about its capital position and access to cash. The Fed couldn't have lent to Lehman without risking a large loss.”

Overall, the reasons why the U.S government didn’t bail out Lehman Brother are reasonable, but it might be better for the economic if the U.S government had bailed out Lehman Brother.