Human Trafficking Essay -- Crime

Human Trafficking is the unlawful trade of human beings for various purposes such as reproductive slavery or sex slavery. According to the United Nations Office on Drugs and Crime [UNODC] protocol on trafficking, â€Å"Trafficking in Persons is the recruitment, transportation, transfer, harbouring or receipt of persons, by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation† (UNODC). Human Trafficking is a growing phenomenon. It is one of the fastest growing types of transnational crime worldwide. According to the US State department’s 2009 â€Å"Trafficking in Persons Report,† at least 12.3 million adults and children fall victim to human traffickers every year (qtd in Haerens 17). Human Trafficking occurs on every continent and has been booming. One reason for the increase in human trafficking is because of globalization. When competing in the global marketplace companies and corporations need cheap labor, and they don’t care where it comes from. This in turn, causes the employment recruiters (the traffickers) to go after their prey (the trafficked). Human Trafficking can be thought of as a national security implication. One case of involuntary or forced servitude, standing alone, does not constitute a breach in national security. When viewed as a whole, in relation to human trafficking, this is considered as a major breach in National Security and should be treated as a serious crime. According to Rizer and Glaser â€Å"the crime of trafficking in persons has recently been added... ...demic Search Complete. Web. 21 Mar. 2012. Haerens, Margaret. Human Trafficking. New York: Greenhaven Press, 2012. Print. â€Å"Human Trafficking.† United Nations Office on Drugs and Crime. UNODC, 2012. Web. 4 April. 2012. Kloer, Amanda. "Sex Trafficking and HIV/AIDS." Human Rights 37.2 (2010): 8-25. Academic Search Complete. Web. 24 Mar. 2012. Ojeda, Auriana. Slavery Today. New York: Greenhaven Press, 2004. Print. Pati, Roza. "States' Positive Obligations with Respect to Human Trafficking: The European Court of Human Rights Breaks New Ground in Rantsev V. Cyprus and Russia." Boston University International Law Journal 29.1 (2011): 79-142. Academic Search Complete. Web. 23 Mar. 2012. Rizer, Arthur and Sheri R. Glaser. "Breach: The National Security Implications of Human Trafficking." Widener Law Review 17.1 (2011): 69-94. Academic Search Complete. Web. 21 Mar. 2012.

Barriers to Democratization in China

This article presents and enlightens the rationale for the failure of China in establishing a democratic system. Such topic is broad and extensive apparently because it attempts to explain the natural flow of democratization with relation to China that has yet to establish a democratic system. This also endeavors to enhance the understanding of democratization process on a certain country.The whole presentation of barriers to Chinese democratization is divided into phases and provides analytical framework in the further understanding of the nature of democratization process.Such phases are consisting of several factors which serve as the subordinate topics in demonstrating the impacts of these factors on Chinese democratization. Chinese Democratization Chinese democratization is of immense importance, both practically and theoretically. Although it is only one country, China represents between one-fifth and one-fourth of the world’s population. According to Rummel (1991), â₠¬Å"due to the undemocratic systems in twentieth-century China, millions suffered from political persecution and died unnatural deaths.† For example, more than twenty million starved to death in the famine of 1959–61. As late as 1989, hundreds of unarmed civilians were mowed down in the capital city of Beijing. Democracy may not work miracles, but it can avoid such tragedies (Rummel 1991). Presenting Barriers to Chinese Democracy I. Historical Legacy and Democracy This part of the article presents the assessment of the potential impact of historical legacy on the process of democratization in China. The general conditions, political thoughts, and political traditions go under this first factor.It initially looks at how some general conditions constrain Chinese political development and compares political thoughts with modern democracy and examines the way democratic or undemocratic Chinese political traditions were. Historical legacies are not of equal importance. Some a re trivial and transitory, such as people’s dress. Others are substantial and stable, such as people’s ways of treating one another. Modern democracy resulted from the interaction between Western traditions and modernization.Given China’s different historical path and its low level of modernization, its democratization process was in the grip of its historical legacies. By focusing on general conditions, political thoughts, and political traditions, this chapter suggests that China’s historical legacies pose a challenge to the democratization process. The vast territory and diverse conditions always create problems for governability and participation in traditional times. A long history tends to foster a cynical view of politics, just as a short history may facilitate an idealistic view of politics.A huge population not only decreases people’s incentive for participation, but also renders it difficult to change the rules of the game. China’s relative isolation from the West cost the Chinese the opportunity to learn from a great and dynamic civilization. All these forms formidable force of inertia that slows down and even blocks attempts to adopt new systems and habits in China. Indeed, few Western thoughts before the modern time were democratic, but the Athenian political and intellectual experiences, the Roman conception of citizenship and law, and Christianity’s conception of humanity did facilitate democracy as we know it today.By contrast, Confucianism, Legalism, Mohism, and Taoism contained some democratic elements, but none qualified as being democratic because of their failure to advocate popular sovereignty and individual liberty. As the dominant ideology in China, Confucianism was paternalistic in preaching benevolence and propriety. Despite its good intentions, its differences from democracy were huge. Kant’s remark that paternalism is the worst form of tyranny contains some truth. What further separates China from the West is their political traditions. Feudalism had dominated the West for a long time.It was characterized by its lack of equality, liberty, and a powerful central government. It deserves mentioning that not until the early 1860s were serfdom and slavery abolished in Russia and the United States, respectively. Against this historical background, the middle class in the West not only demanded equality and freedom denied by feudal systems, but also attempted to limit the rising power of the central government after the decline of feudalism. By contrast, traditional China witnessed a great deal of socioeconomic equality and freedom.Chinese political and economic systems allowed for a high level of social mobility. So the call for freedom and equality appealed less to the Chinese than to the Europeans. Compared with its European counterparts, the Chinese government was powerful. Theoretically, all the land and people belonged to the emperor. But China’s va st territory and traditional technology softened the impact of a bureaucratic empire. There were both enlightened and despotic rulers in Chinese history. When tyranny accompanied socioeconomic hardship, the Chinese exercised their right of rebellion.As a result, Chinese history seemed to be trapped in a â€Å"dynastic cycle. † Without modernization and foreign contacts, China might have found it difficult to break this cycle. II. Local Forces and Democracy During the second half of the 19th century, China experienced the decline of central power in contrast to the rise of many countries like the U. S. , Italy, and Prussia. In particular, the Taiping Rebellion which endured from 1851-64 had affected almost all the provinces in China proper, devastated its most prosperous regions, and had cost 20 to 40 million people dead.What further undermined the central power was the Nien Rebellion in the north from 1851 to 1868, the Miao Rebellion in the southwest from 1855 to 1872, and th e Moslem Rebellion in the northwest from 1862 to 1878. Collectively, these are referred to as local forces that decisively affect the democratization process in the Republican era. The establishment of the republic did not imply that the Chinese were willing or able to maintain democracy. Before the 1911 Revolution, most Chinese had no preference for democratic republicanism, and those who advocated democracy treated it less as an end than as a means to national power and wealth.But the revolution ruled out the possibility of establishing a new monarchy in China and ushered in the era of republicanism. The entire Republican era was mainly shaped by the shifting balance of power between the central government and local forces. Since the mid–nineteenth century, foreign powers and local forces had undermined the Manchu regime. During the 1911 Revolution, the independence of provinces doomed the Qing dynasty. Since the local forces continued to threaten the new republic, a strong man was needed to rule China.Yuan Shih-kai’s fight against disintegration served national interests and commanded widespread support. But his monarchical scheme discredited him, and his death created an opportunity for the rise of warlordism. During the warlord period, the central government not only lost control of local forces, but also was manipulated by powerful warlords. Against this background, the Nationalists cooperated with the Soviet Union to achieve national unification. The rise of local forces was nothing new in China. With its vast territory, regional diversity, and traditional technology, the empire always faced the danger of division.Since the respective authorities of central and local governments were not clearly defined, the central government might have too much or too little power. On balance, the former was a lesser evil than the latter. While rational rulers had little intention to kill the goose that lays the golden eggs, the lack of legitimacy motivat ed local satraps to maximize their profits. The Chinese fear of local forces appeared unwarranted in the eyes of foreigners, but it constituted a self-fulfilling prophecy. Idealizing a unitary system, many Chinese leaders would resort to violence and war for the sake of national unification.Accordingly, the fear of local forces led to war, which in turn justified people’s original fear. If the establishment of the new republic had little to do with the Chinese people’s democratic conviction, partisan conflict, domestic turmoil, and civil wars in the Republican era made the Chinese disillusioned with democracy. Indeed, democracy does not necessarily weaken state power, and no real democracy was put into practice in China. But there is no denying that the early phase of democratization tends to unleash divisive forces. Through legitimating diverse interests democracy risks undermining the central power.Historical examples abound. A weak confederation followed the America n Revolution. Fortunately, the founding fathers opted for a federal system, which struck a balance between central and local powers. Like many other countries, post-Revolution China experienced chaos and civil wars. The Revolution was intended to strengthen state power, but contributed to its further decline. The painful experience in the Republican era convinced the Chinese that a weak and divisive country needed a strong government, and that dictatorship represented a lesser evil than anarchy. III. World System and DemocracyAll countries have been dragged into the world system in the contemporary times. Unfortunately, this foreign system is unbeneficial to weaker countries and a monster that is beyond their control. It is no exaggeration, as Toynbee (1969) declares, to say that their modern history is one of their responses to foreign challenges. Before the end of World War II, China was one of the disadvantaged countries having deplorable status in the effect of world system†™s adversity to democratization processes. Without the modern world system, democratization might not have become an issue in China.However, such a system militated against the process of democratization in the Nationalist era in several ways. First, the nature of the world system was undemocratic, if not antidemocratic. What characterized this system was power politics and capitalism. The former treated might as right; the latter sought profits and ignored equality. To survive in such a world required a strong state, but not necessarily a democratic one. Given China’s low status in the world, the Chinese desired wealth and power rather than democracy.In fact, the Chinese accepted democracy, less because they embraced the value itself than because they saw it as a method to strengthen the state power. Second, liberal democracy was less attractive than it is today. Internal disturbance and foreign threats in 1930s provided the best justification for dictatorship. No wonder t hat the Nationalist government and many Chinese intellectuals found dictatorship both necessary and desirable. Third, the Japanese aggression made the Chinese democratization almost irrelevant.Indeed, the Sino-Japanese War facilitated partisan cooperation, stimulated Chinese nationalism, and helped democratize the world system. But amid foreign aggression, national survival took precedence over the call for democracy and human rights. Equally important, the war catapulted the Communists into formidable power and exacerbated socioeconomic problems the Nationalists had never been able to handle. As a result, a democratic solution to China’s political, economic, and social problems became difficult, if not impossible. Lastly, the Cold War system affected Chinese political development.The victory of the Soviet Union in World War II and the expansion of socialism into East Europe boosted the reputation of socialism in comparison with liberal democracy. Both superpowers wanted to i ncrease their own influence in China and sided with either the Nationalists or the Communists. It was no exaggeration to say that the evolution of the world system made possible the Communist triumph. IV. Socialist Values and Democracy Although the Mao era did well in promoting socioeconomic equality and deserved credit for encouraging mass participation, socialist China did not qualify as democracy as we know it.The one-party rule excluded the possibility for citizens to select rulers. Civil and political rights were ignored, if not flagrantly violated. The house-registration system and class label contravened the principles of liberty and equality. Millions suffered from political persecution. Even among the party itself, powerful struggles were frequent and cruel. What was worse, the Communists did not deliver on their own material promise. Living standards in Maoist China barely increased. In explaining the lack of democracy in China, one cannot ignore the role of Mao.It was Mao who hastened the socialist transformation, led the AntiRightists Campaign, initiated the Great Leap, encouraged the people’s communes, reversed the sensible guidelines of the Eighth Congress, and launched the Cultural Revolution. Without him, Chinese socialism would have taken different shape. But even without him, there would have been little chance for socialist China to be democratic. Authors like Berger (1993) and Almond (1991) believe that â€Å"the reality is that although countries with market economies have not necessarily been democratic, all democracies have coexisted with market economies†.Advocates of socialism see no contradiction between socialism and democracy. Ralph Miliband, for example, maintains that â€Å"socialist democracy would embody many of the features of liberal democracy, including the rule of law, the separation of powers, civil liberties, political pluralism, and a vibrant civil society, but it would give them much more effective meaning . It would seek the democratization of the state and of society at all levels (Miliband p. 117). This theoretical possibility has not yet translated into reality.C. B. MacPherson is more sophisticated in arguing that although existing socialist countries do not guarantee political freedom, this does not imply that socialism inevitably conflicts with democracy. He attributes the socialist failure in this respect to three specific factors. According to MacPherson (1973), â€Å"socialist countries were established in underdeveloped countries; they faced the hostility of Western powers; and their birth in revolution or civil war entailed the restriction of freedom. †The conflict between socialism and democracy cannot merely be explained by historical circumstances, but should be explained by the nature of both socialist revolution and the socialist system. By aiming at abolishing private property, socialist revolution inevitably invites the strongest opposition from all ruling an d propertied classes. As a result, socialists have to rely on violence to achieve their objective. Moreover, many scholars, like Belden (1949) and Talmon (1960) find the socialist preference for collective over individual rights to be at the root of totalitarianism.As early as 1848, Tocqueville stated that â€Å"democracy extends the sphere of individual freedom; socialism restricts it. Democracy attaches all possible value to each man; socialism makes each man a mere agent, a mere number. Democracy and socialism have nothing in common but one word: equality. But notice the difference: as quoted in Hayek (1972) that â€Å"while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude. † The dictatorship of the proletariat may intend to serve the vast majority of the people, but it bodes ill for democracy and human rights.Lenin defines dictatorship as â€Å"nothing more or less than authority untrammeled by any laws, absolutely unrestricted by any rules whatever, and based directly on force† (Lenin p. 353). Socialists’ emphasis on class character ignores humanity and individuality, and their call for class struggle damages the social fabric. By dehumanizing class enemies, they tolerate and even extol the abuse of human rights. Not least of all, even if socialist rulers are well intentioned, a socialist economy provides the best pedestal for despotism.Public ownership and planned economy enable an all-powerful state to control people’s livelihood, to limit their freedom, and to foster their passivity and fear. V. Economic Development and Democracy Deng Xiaoping’s Era Deng’s reform policy was less political democratization than economic development. Nevertheless, close relations between these two processes determined that he had an important role to play in the process of democratization (Shambaugh 1995). Economic development and political democratization are both desirable, but they somet imes compete and even conflict with each other.Deng’s preference for economic development over political democratization was understandable. Human beings are more economic animals than political ones. Democracy appeals less to poor people in poor countries, and Deng’s political liberalization further decreased the Chinese desire for democracy. Deng first instituted the responsibility system in the countryside and later abolished the commune system. At the same time, he did his best to integrate China into the outside world. The success in rural reform shifted Deng’s attention to urban reform.Despite its limitations, the economic reform increased the people’s living standard, boosted the private sector, substituted a market economy for a planned economy, and internationalized the Chinese economy. All these had positive impacts on democratization, because they reduced the state power over the society, expanded an autonomous economic realm, decreased the eli te’s interest in seeking political power, and motivated better-off and better-educated people to demand more freedom and rights.Economic reforms, however, could not be deepened without political reform. Twice Deng wanted to institute political reforms, but they fell short of expectations. Deng never embraced liberal democracy. For him, democracy represented a means to economic development. When it jeopardized stability and unity, it would be abandoned. But Deng’s political reform received less credit than it deserves. Elections were permitted at local levels. Legal reforms moved China closer to the rule of law. With his administrative reform, old cadres gradually gave way to new technocrats.Although the Chinese did not enjoy positive freedom to participate in government affairs, they were granted negative freedom in their social and economic life. In short, Deng’s political reform represented a change in system rather than a change of system, and was characteriz ed not by democratization but by liberalization and institutionalization. Deng’s economic reform was a two-edged sword, providing more legitimacy to the Communist rule, and causing social unrest and public protests. The 1989 Tiananmen Incident reflected and reinforced the legitimacy crisis.The mass protests originated from people’s dissatisfaction with their economic situations and social injustice, but did not mean that they wanted to overthrow Communist rule. Although the repression temporarily stabilized the situation, the legitimacy crisis became much severer. Like most authoritarian rulers, Deng had no choice but to rely on further economic development to regain legitimacy. Since then, Chinese leaders and people have followed the East Asian model, putting development before democratization.Conclusion All of the above factors presented are apparently legitimate and convincing when it comes to the realities happening in China. These barriers are enough to provide an swers to the issue of China democratization. This presentation provides knowledge with such potential factors and significantly deepens our knowledge of the nature of democratization process in a selected country. References Almond, Gabriel. â€Å"Capitalism and Democracy,† in PS: Political Science and Politics. September 1991: pp. 467–74.Belden, Jack. China Shakes the World. New York: Harper, 1949: p. 504. Berger, Peter. â€Å"The Uncertain Triumph of Democratic Capitalism,† in Capitalism, Socialism, and Democracy Revisited. Ed. Larry Diamond and Marc F. Plattner. Baltimore: Johns Hopkins University Press, 1993: p. 3. Hayek, Friedrich. The Road to Serfdom. Chicago: University of Chicago Press, 1972: p. 25. Lenin, â€Å"A Contribution to the History of the Question of the Dictatorship. † in Collected Works, 31 (n. d. ): p. 353. MacPherson, C B.Democratic Theory: Essays in Retrieval. Oxford: Clarendon Press, 1973: pp. 151–52. Miliband, Ralph.  "The Socialist Alternative,† in Capitalism, Socialism, and Democracy Revisited. Ed. Diamond and Plattner, p. 117. Rummel, R J. China’s Bloody Century: Genocide and Mass Murder since 1900. New Brunswick, NJ: Transaction Publishers, 1991. Shambaugh, David, ed. Deng Xiaoping: Portrait of a Chinese Statesman. Oxford: Clarendon Press, 1995. Talmon, Jacob. The Origins of Totalitarian Democracy. New York: Praeger, 1960.

The BP Oil Spill essays

The BP Oil Spill essays The oil spill which rapidly swept the nation with damaging effects for several months was an enormous controversial issue which appeared in media sources from coast to coast. In late April when the catastrophe occurred, the world was not at all ready for what was soon to come. Initially to stop the steady flow of oil from seeping into the Gulf lead to an excess of serious problems; specifically, in the areas which surrounded the site of the incident. Until the recent tragedy British Petroleum, better known as BP, presented themselves as a good corporation; however, due to the devastating events the once good corporation took a huge hit. Chief Executive Officer, Tony Hayward primarily, was directed in the line of fire throughout the whole ordeal. Speculations of Hayward being entirely at fault were in fact made, but can the entire blame of such an unanticipated accident be single-handedly placed on one man? It was thought by many that after suffering such a misfortune, BP would likel y go bankrupt due to tremendous loss of funds. An article by Charlie Savage which appeared in the New York Times discussed in detail the block on the drilling ban issued by Federal Judge Martin Feldman. Shortly after the massive spill began, six month immobilization of all offshore drilling in depths greater than five hundred feet was issued. Fortunately, the drilling ban immediately brought thirty-three offshore exploratory endeavors to a standstill and suspended numerous new permits; however, it did not affect already operating rigs. President Obama stated, Continuing to drill at these depths without knowing what happened does not make sense, and could potentially jeopardize the safety of those on the rigs and the safety of the environment in the Gulf (Savage). In his quote, President Obama clearly stated his opinion on the matter and acknowledge the fact that continuing to drill would undoubtedly pose some degree of danger. ...

Cell Phones Possession in Schools Essay Example

Cell Phones Possession in Schools Essay Example Cell Phones Possession in Schools Essay Cell Phones Possession in Schools Essay Essay Topic: Middle School NAME TEACHER Eng. 5 Pd. 2 19 September 2011 Cell Phone Possession in Schools There are many pros and cons towards cell phone possession in schools; nonetheless the pros outweigh the cons in extensive ways. In The New York Times, Kim Flodin wrote an article based on cell phone possession in schools. Can You Hear Me, Mom has positive and negative aspects towards the possession of cell phones in schools, through Kim Flodin, a parent, and Joel Klein, a former NYC school chancellor. Kim Flodin is a parent of two who is for cell phone possession in schools. She supports her argument by stating, â€Å" y middle-schooler commutes on her own from our Brooklyn home to her Manhattan middle school, and she needs a cellphone for her safety. † She also states â€Å"The minute my daughter leaves that school to come home, her phone is our lifeline. † September 11th 2001, was a very tragic day. Thousands of lives were lost, and many injured. During 9-11 school was in session, and cell p hones were the most used device to communicate. For example, my mom called my dad on his cell phone that day to make sure he was ok, because he was in manhattan, and near the twin towers. My mother was able to reach him and my dad was okay. Joel Klein was the former NYC school chancellor. He is against the possession of cell phones in schools, and defends the ban by stating, â€Å". cellphones lead to cheating on tests and cause other problems. † he also states â€Å"And phones incite fights? † There is text bullying, and other ways fights are started, but if you were in trouble and needed to call 9-1-1 or someone to help, a cell phone is the only way to communicate quick. Why should all the students get their phones confiscated and taken from them, when only a handful of them abuse the privilege of being able to possess a cellphone in school? Metal detectors are a good way of finding lethal weapons, but when it comes to taking away a device that can be used for emergency purposes, its wrong, even though some students exploit the privilege. Kim Flodin and Joel Klein have different opinions on the topic of cell phone possession in schools. They support their opinion in several ways, but the schools and parents should come to a solution and live in a happily ambience. However the pros outweigh the cons, and cell phone possession should be aloud in schools due to many complications and situations that have happened in the past due to not possessing a cellphone in school.

Compare and Contrast Rawlsian and Dworkinian account of distributive Essay

Compare and Contrast Rawlsian and Dworkinian account of distributive justice - Essay Example The focus in this methodology of viewing justice is on the outcomes and results of distributions rather than the procedural tools which connect with administrative bodies or the government established in the system. Two prominent thinkers, i.e. Ronald Dworkin and John Rawls have presented their ideas about distributive justice and an understanding of these ideas is important for any student of sociology, philosophy, law and even economics. It would be best to examine the ideas of Rawls first since he presented his ideas before Dworkin. In the simplest of terms, John Rawls distributive justice is based on the idea of alternative distributive justice in which a Difference Principle is called into action. Rawls accepts that equality and equal distribution of resources within any given system is impossible therefore he creates a difference principle under which inequality becomes perfectly acceptable. The Difference Principle allows a society to allocate resources in a way where equality is not needed, but only if the creation of this inequality makes the lower strata of society materially better off than they would have been had there been perfect equality (Rawls, 1993). As a difference to Dworkinian distributive justice, this idea is based on the fact that the level of wealth in an economy is never a fixed constant and it can be changed from one point in time to the other. Rawls suggests that the wealth of a nation can be created by technology, innovation and development and this has been clearly proven by the industrialized nations of the world. Of course this comes with the idea of capitalism and social Darwinism where the most productive people within an economy will rise to the top and create wealth for themselves as well as the economic system they are in. This may lead to the accumulation of wealth at the top of the social order but Rawls does not consider this to be a

PDA SIM Strategies Assignment Example | Topics and Well Written Essays - 750 words

PDA SIM Strategies - Assignment Example Also, there should be a target of assigning the necessary resources to the segments that are being profitable. This strategy might not be immediately very profitable, as there will probably be some more inherent costs, even though some profit is expected, which will help in the company's actual financial situation. It is essential to start thinking about producing and marketing new products with the same characteristics which the actual consumers need. The products that the customers want to be on the market should be concentrated on, rather than continuing to offer the same customized products. I have learned from this simulation that in order to create demand, there has to be adequate investment in hiring of sales offices, web centers, customer service, promotions and advertising. I feel that for better profitability, there must be good relations with suppliers and customers. According to Kreitner and Kinicki, "Effective change requires reinforcing new behaviors, attitudes and organizational practices" (Kreitner & Kinicki, 2004). Also, having the right products, in the exact moment seems to require quite some time, and I think this is another important issue to be considered. When an organisation has produced the right product or services, they would want to deliver it according to other current products and happenings in the actual market, and also according to what the competition is doing. I think it is important for the company to examine what the priorities are, and to review the currently established brand service prices.Since the X7 handheld is in its growth phase, there are many potential X7 customers in the market. So, most of the customers for the X7 will be new customers. 1. How you did on this round (Better or worse What was your score). Better 2. Why do you think you did better (or worse) I was able to appreciate the nature of the pda marketing strategies better. 3. What changes in strategy will you make for the final round The performance of the X7 is holding steady, as compared with the competition, so I will increase its production and sales Works cited Kreitner, R., Kinicki, A. (2003). Organizational behavior New York: The McGraw-Hill Companies. Retrieved February 12, 2007 from University of PhoenixResource, MBA520 Resource optimization website http://forio.com/pdasim.htm

Student Loans; How banks manage them and how they affect individual Term Paper - 1

Student Loans; How banks manage them and how they affect individual spending - Term Paper Example ay for college education that they cannot afford creates a situation in which a slowed job market will be unable to absorb these individuals and provide the necessary debt payments that these loans necessitate. Accordingly, the rate of default during any future slowdown in economic growth could be so profound that these individuals will contribute to a secondary crisis that could be far worse than the mortgage-backed security crisis that took place during 2007/2008. Yet, rather than focusing an entire analysis upon the potential for hardship that exists due to the way in which student loans are managed and given out, the following analysis will specifically focus upon the way in which banks manage student loans, the potential for distress that this style of management creates, and the individual hardship that student loan/debt repayment creates for a recent graduate and their overall Outlook for earnings during their lifetime. It is the hope of this author that such a level of discus sion will be beneficial with respect to engaging a further level of appreciation with regard to the issue of student loans, how they are managed, and how this form of debt impacts upon individuals within the current era. One of the most interesting ways in which the reader can come to appreciate the similarity between the mortgage-backed securities that contributed to the 2007/2008 financial hardship as compared to the issue of student loan debt creation and repayment has to do with the similarity of financial structure; specifically with regard to the way in which these student loans are packaged in bulk and sold within equity markets. In almost an identical manner to the way in which banks manage mortgage-backed securities and bought and sold these as an asset, the financial system is currently performing much the same process with respect to student loan debt. This is not a new concept. Instead, packaging debt and selling it to investors that place a premium upon whether or not