The New York TimesSunday, May 24, 2009
South Korea on Edge After Ex-President's Suicide
The New York TimesWednesday, May 20, 2009
Arms Sent by U.S. May Be Falling Into Taliban Hands
The New York TimesThursday, May 14, 2009
India's Path to Economic Reform Reaches a Fork
In
The Bharatiya Janata Party is the main opposition party to the current Congress Party that is promising to provide the struggling diamond industry with subsidies and to protect the farmland from excessive reforms, “dubious industrial projects”.
Amid the global economic downturn,
Regardless of which party comes to power in voting that ended on Wednesday, the next stage of Indian reforms will be controversial.
A decade of high growth and increasing prosperity has created beliefs among many people in the political class that it is not necessary to seek for openness to investment, fewer state-owned companies, or greater deregulation of the private sector. Regarding banks, whose 70 percent of shares are held by the government, Sonia Gandhi, the Congress Party’s president, said that the nationalization of banks has “given our economy the stability and resilience we are now witnessing in the face of the economic slowdown.” As well, he insisted to retain a majority stake in state-owned companies. Congress Party is proud of their achievements of saving
On the other hand, economists and political analysts who believe the necessity of deeper reforms in
Since the subprime mortgage crisis in the
Meanwhile, Rajeev Chandrasekhar, an independent member of the upper house of Parliament and an entrepreneur, said he was worried that the country would end up facing a new crisis if it doesn’t undertake the next series of reforms as soon as possible.
Opinion: I believe this kind of controversy between openness and closeness is what a economically developing country is destined to face. South Korea also faced the same controversy in the 1970s to 1980s when the country's economy boosted and people were discussing whether they should accept external influences or not. Korea's president Park Chung Hee imposed a policy of opening its gates to the world and learned new technologies and economic systems to further improve the nation's economy. The result of this was both advantageous and disadvantageous. Influx of foreign technologies enabled the country's industrail development and led to creation of jobs. As well, exporting goods earned a huge amount of money. On the other hand, foreign capitalists dominated Korea's economy, taking away Korean businesses' room to rise on the horizon. Considering both advantages and disadvantages, I believe it is necessary for Indian government to make a wise decision that can balance between opennes and closeness to both develop and protect its developing economy. As well, as Prakash Kara warned, it is critical to make social reforms such as establishment of reliable economic system and building infrastructure, changing labour laws, and streamlining licensing requirements. Such a social reform would benefit the nation's economy in the long run because establishment of ineffective economic system can directly lead to recession just like South Korea fell into IMF crisis after years of economic growth. With the huge population and cheap labour, India has a incredible potential to become a world power in terms of economy. For it to achieve the status in the world relations, it should answer the question of openness and closeness wisely and establish effective economic system that they can rely on in their long run.
Tuesday, May 12, 2009
China Observes Anniversary of Quake
The New York TimesThe earthquake a year ago this week killed 87,000 people
President Hu Jintao said Tuesday during a commemoration, “the great task of earthquake rescue and recovery reminds us again that unity is strength, and that victory can only be gained through struggle.”
Opinion: We learned in class that one of the characteristics of an authoritative government is controlling press. Controlling press means that people are not free to express their opinion. In contrast, a democratic government protects people's freedom of speech. I have heard many times that China is moving towards democracy from authoritarian. Thus, it is crucial for the chinese government to understand the importance of people's opinion and how they should respect them. The way the government dealt with the earthquake was a violation of freedom of speech. Parents who try to speak up for investigation and strict governmental regulation on school buildings have been harrassed and jailed. As well, reporters are deprived of their rights to inform people with the truth. I understand that the government is worried of social unstability angry people might cause. However, the government has to realize that organized protests are an important part of democratic society. The government has to listen to people and work on behalf of them in order to finally establish democracy in the country.
Friday, May 08, 2009
U.S. Jobless Rate Hits 8.9%, but Pace of Losses Eases
The New York TimesSupporting the Treasury’s claim that American banks are healthier than many analysts had anticipated, the jobs report presented made it clear that the nation is starting to drive out of the economic downturn. Panic that settled in people minds after the bankruptcy of the prominent investment bank Lehman Brothers has alleviated. Relief, rather than panic, is becoming more dominant motif of American commercial life. Ethan Harris, one of the chiefs of
Opinion: It is great to hear that the pace of the jobless rate eases although it is still worsening. As some economists believe or wish, I also wish the economy finally arrives at the relenting stage. However, we have to be aware of the fact that the jobless rate looks great only by comparsion with recent months. The numbers are still appalling compared to the times when economy was doing well. Also, the jobless rate has increased because more people seek jobs, not because businesses are inclined to hire workers. This means that businesses can still not afford to pay more workers. Therefore, I believe it is most important for the government to balance out direct and indirect plans. Direct plans will support people or businesses who are struck by the economic crisis and need help to go over it. The indirect plans will establish fundamental sectors of economy such as new energy, and transportation. In order to create more jobs, the government should invest in a growing industry such as renewable energy.
Monday, May 04, 2009
Flu, Mostly Mild, Has Spread Across U.S.
The New York TimesWednesday, April 22, 2009
South Africans Vote, Likely for Status Quo

Opinion: First of all, I am impressed how South African people gathered at the polling station at midnight to cast their ballots on the election taking place next morning. Many people here in Canada and in my country Korea seem to be indifferent of thier privilege of suffrage. However, they were in realization of the importance of voting. One of the other articles about this South African election shows an interview with a 20-year-old student. He spoke about making a difference and having their voice heard. I also agree that the right to vote is something that is extremely important and is worth waiting hours to cast my ballot. This is because that is one of many easy ways to have your voice heard and participate in democratic society where people have freedom of speech. Second of all, I think South Africa citizens should now become more thoughtful of their selection rather than voting for the African National Congress party out of thankfulness for the party's past achievement of liberation. Because the party has currently been accused of corruption, people should become more careful. Their wrong decision can easily lead to the country's fall to the political corruption. In this context, I agree with former President Thabo Mbeki that people should vote according to their judgement on conscience. In order to complete the most ideal form of government Abraham Lincoln proposed in his Gettysburg speech, people's active and conscientious participation is critical. "The government of the people, by the people, and for the people" can only be established with people's righteousness and such a government "shall not perish from the earth".
Monday, April 20, 2009
Iranian Calls Israel Racist at Meeting in Geneva

Thursday, April 16, 2009
Third-World Stove Soot Is Target in Climate Fight

Wednesday, April 01, 2009
Madonna to adpot again from Malawi, Officials say

Opinion: Madonna's act of charity is truly admirable and thus, influential. Many people are willing to follow the trace of well-known celebrities. And many people would choose to take part in charitable works as Madonna is doing. Her charitable organization in Malawi will help people suffering from AIDS. There currently is 14 percent of the nation's total population of 12 million that is afflicted with HIV. This charitable work can also link back to our YPI project. As Madonna filmed a documentary to encourage people's aid for the Malawians, our documentary films can also help the charity.
Thursday, March 05, 2009
China Outlines Ambitious Plan for Stimulus
His speech to the National People's Congress, China's legislature, reflected China's two major concerns: riding out of the global economic crisis and keeping citizens' discontent and dissatisfaction from turning into public unrest.
Tao Wang is a Beijing-based economist for UBS Securities. She considered that China government takes social stability as the top concern and the new social investment is definitely necessary and equally important as major construction projects that have boosted China's economy.
Prime Minister Wen Jiabao expected in his speech that 8 percent growth in China's gross domestic product(GDP) would hold down unemployment and the potential for social unrest. Mr. Wen said that the new spending will be highly focused on schools, hospitals and clinics, low-income housing, environmental programs in order to improve people's lives. He also insisted that bolstering consumer demand must become "a long term strategic principle and a basic point of departure for stimulating economic growth" in order to ride out of the economic downturn and prepare China for the changed economy of the future.
Experts will be examining whether the new proposal is wisely and successfuly put into action as promised.
Opinion: I agree with Ms. Tao Wang that keeping social unstability from boiling over is as equally important as many other stimulus programs such as construction of roads or dams. This is because many riots have taken place in China, hindering the economic growth and unification of China. For example, during 2008 Beijing Olympics, the conflict between the government and Tibet was rampant that it was considered to be the top concern during the event. China used police force to prevent Tibet from sneaking into major cities. This was the major flaw during the world's biggest event. Just like this, social unrest has been a hindering factor in China's success. Especially, in this period of global economic crisis, social unrest is more likely because the government is having difficulty satisfying laid-off workers and their families, which could direclty lead to social unrest. Also, I agree with the government's proposal to bolster consumer spending. It is because the best way to ride out of this crisis is to have money cycling in society. Consumer spends money to buy things they need, and businesses can grow and hire workers by using the money. Growth of businesses will also ensure China's prosperous economy in the long term and help China prepare for the future economy.
Tuesday, March 03, 2009
Teen jealousy led to girl's slaying, murder trial told
Murder trial told that a schoolgirl Stefanie Rengel was killed by her former boyfriend whose girlfriend pressured him to kill her over jealousy.The prosecutor Robin Flumerfelt alleged that Rengel was lured from home and was stabbed six times to death by her former boyfriend in the early evening of New Year's Day 2008. Flumerfelt testified that the murder was planned through numerous phone calls and MSN messages in which the accused girl urged her boyfriend to kill Rengel over jealousy.
The prosecutor said, "Stefanie Rengel was savagely murdered for no other reason than that (the accused) had decide it was time for her to die."
The accused girl, who is now 17 and was then 15, pleaded not guilty today to first-degree murder.
The prosecutor also told the jury that the killer visited a friend's home after the murder and confessed that he stabbed Rengel. The accused girl called him and asked if he had killed Rengel. Then, the accused girl asked how they would cover it up.
The prosecutor said that the boyfriend had visited Rengel and said, "tell her(the accused girl) so she'll stop pestering me to kill you." According to police, in a web chat, the girlfriend said, "I want her dead ... LOL. UR (you are) getting blocked until u (you) kill her."
Opinion: I can't believe such a cruel crime has been committed by a girl and a boy of my age group. Although I believe the accused boy is more responsible for the crime, I think the accused girl should also be punished. Threats like "UR getting blocked until u kill her" can't be an excuse for killing a person. Also, I can't believe a teenager said "I want her dead" with a LOL. This shows that the girl would not feel guilty at all about the death of her friend because of her. I think this appalling story was stemed from lack of morality in the teenagers minds. In fact, many teenagers are exposed to media, such as movies and video games, that are extremely violent and adults view that these media will negatively influence teenagers and deteriorate their ability to differentiate what is right and what is wrong.
Friday, February 27, 2009
Obama Plans to End Combat Mission in Iraq by August 2010
President Obama visited Camp Lejeune on Friday and declared that the United States would pull out its combat forces from Iraq by August 2010 and complete the withdrawal by December 2011.The decision will keep President Obama's promise during his campaign that he would shift resources and troops from Iraq to Afghanistan. The decision also indicates a significant change in America's attitudes about Iraq. There has been years of debate between war and peace, whether the country should withdraw its troops or not, whether or not the combat mission was necessary and reasonable. However, today's decision and the support shown by party lines, even including President Obama's rival in the last year's election, demonstrates that there has been a huge change in America's perception towards Iraq.
The pullout plan will withdraw most of the 142,000 troops, leaving out 35,000 to 50,000 troops as "transitional forces" to hunt terrorist cells and American civilian and military personnel. Those "transitional forces" will also be pulled out of Iraq by 2011.
President Obama said, "By August 2010, our combat mission in Iraq will end. We will complete this transition in Iraq responsibility, and we will bring our troops home with the honor that they have earned."
Mr. McCain, the former Republican presidential candidate, welcomed President Obama's pullout plan, calling the withdrawal "reasonable" and saying, "cautiously optimistic that the plan laid out by the president can lead to success."
Opinion: I personally welcome the withdrawal plan declared by President Obama as I believe that the combat mission has only caused severe casualties, earning nothing but shameful reputation in international society. According to another report about the withdrawal, President Obama said, "Every nation and every group must know, whether you wish America good or ill, that the end of the war in Iraq will enable a new era of American leadership and engagement in the Middle East." I agree with President Obama because the combat mission has only caused adversity towards the United States in the Middle East when they have to cooperate to eradicate terrorist forces that disturb global peace. As well, it is also significant that the decision was supported across party line because such consensus might mean the United States' more active participation in the world's peacekeeping activities. The United States' help in peacekeeping will be truly magnificent as it is the most influential country in the world and can lead to global cooperation in solving problems caused by terrorism.
Monday, February 23, 2009
As Doubts Grow, U.S. Will Judge Banks' Stability
President Obama and his administration declared that they would judge the country's top 20 banks' stability through "stress tests", which will test whether the banks could survive in this global economic crisis as it is worsening.The big banks are insisting that they are still healthy and that they are capable of regaining their status with the governmental support. On the other hand, it is examined by many economists and analysts that some banks are already insolvent, and are not able to survive in this economic downturn. The critics also say that it would be best to nationalize some of the banks now before the economy worsens even further.
The reviews of banks' stability would put the banks in computer-run "what if" situations to evaluate the banks' ability to survive in Depression-like conditions, such as in times of 10 percent of unemployment rate.
Despite the critics' claims that some of the banks should be nationalized, the Treasury Department maintained that they will keep the banks private. They insisted that they have no intention of nationalization of the country biggest banks. Their intention is to support the banks based on the results of the stress tests, which would give the government ideas whether a particular bank needs more capital now or might need more in the future under the conditions like the computer-run "what if" situations.
Opinion: I agree with the government's decision to judge bank's stability. However, what I don't get is that the decision sounds like that the government will support banks regardless of what the results of the tests say. It says that the government's intention is only to see if a particular bank needs more money or not. However, I believe that the government should stop their financial support for those banks that turn out to be incapable of facing the economic crisis and should start spending more on those that are evaluated to be capable. Many economists have already examined that AIG does not have that capability. However, the government has spent an extremely large amount of bailout money on AIG. What the government has earned in return for their support was Wall Street bonuses that outraged people. I read an Opinion paper a few days ago on a korean newspaper that criticized the Obama administration's imprudent policy that does not give up on insolvent banks, but recklessly holds on to the banks. The opinion paper said that the U.S government should merge insolvent banks and call those executives, who are responsible for the bankruptcy of their banks, to account.
Thursday, February 19, 2009
Egyptian Political Dissident, Imprisoned for Years, Is Suddenly Released
Ayman Nour, an Egyptian political dissident who was imprisoned for challenging the governing parties' monopoly on power, was released from prison on Wednesday. The release was not expected at all; even Mr. Nour himself was not aware of his release.The Egypt government convicted Mr. Nour in 2005 of misleading people into wrong political viewpoints in order to prevent opposition politics from flourishing. He gave a new faith in people's eyes and forged their signatures in effort to create his own Al Gahd Party that would oppose to the governing parties. His movement was widely accepted with thousands of signatures when he only needed 50.
The sudden release of Mr. Nour is interpreted by many political analysts as a political gesture at times of increasing pressure from the United States and European governments. Although his release was welcomed, it also created resentment and sadness among people who, from this case, realized that Egypt's justice system was ruled by decree, not law.
Alaa Aswani, a social critic of Egyptian society, said, "I am happy he is out, but I am sad that the executive power and the president can interfere directly in judicial outcomes. The president can put someone in jail and can pardon him and then look for a legal pretext. This is the sad part."
Salama Ahmed Salama speculated on Wednesday that Mr. Nour's release was a good-will gesture to the Obama administration. He said, "all the pretexts for his release today are unacceptable, and no one can believe it. It can be seen in the framework of improving relations with the United States."
Opinion: I also find it unreasonable that the president can interfere with judicial process. As we learned in Civics, there are three government branches:Executive, Legislative, and Judicial. The government is divided into three different branches in order to balance the authorityso that one branch does not have too much control or influence in government's decisions. However, some governments neglect the importance of the branch system and interfere with one another. This is the case in Egypt as well. The executive government rules the country by decree of the president, not by the established law that is for the common good of its people. The Egyptian president pardoned Mr. Nour to show their good will towards the Obama administration, not because the law rules him innocent.
Tuesday, February 17, 2009
Australians Rage Against Arson Suspect
A man, named Brendan Sokaluk, was accused of setting the deadly fires that had killed at least 189 people and burned down at least 640 homes across the southern Australia this month. The arsonist has been placed in a protective custody to be kept safe from widespread fury and anger that are raising among people after his identity was made public.A court at first said that his identity was to be withheld as people's fury can lead to revenge on his family. However, several Australian newspapers published his identity that included detailed profiles, only without his name.
Worried of the public outrage that could endanger Mr. Sokaluk's family, his defense lawyer, Helen Spowart, attempted to convince a judge on Monday that Mr. Sokaluk's identity should remain secret. However, she failed to prevent his identity from being revealed, but was successful in banning publication of his photographs. The judge said, "whatever the court does, his identity will be well known within days. Those suspected of vigilantism would not be prevented from behaving in an abhorrent way simply by suppressing his mane.” The judge agreed to ban publication of his photographs and home address.
According to a local news media, thousands of messages were shared on Facebook calling for torture and death penalty on the arsonist. One of them declares, "Brendan Sokaluk, the Victoria Bushfires Arsonist, must burn in hell." The messages and groups on Facebook were removed under the Facebook's code of conduct and because of the Victoria State Police Department's request to pull down the posts. The department understood the anger expressed by people, saying they were "understandably angry". At the same time, however, they also requested that they “need to let police do their job thoroughly and to allow the correct justice procedures take place.”
Opinion: I believe it is controversial to decide whether the press should reveal the arsonist's profiles or not because the decision can directly relate to the matter of life and death of the arsonist's family and the arsonist himself. I think that the criminal should be judged through a proper and fair justice procedure although the man deserves death penalty or something even worse as those messages and posts on Facebook say. The similar case took place in Korea. Photographs of a man accused of serial murders were published by several newspapers. There were some debates whether it was right to make the criminal's photographs public because people like the murderer's family or acquaintances who are not involved in the crimes, can be targets of revenge. As well, some people argued that even a criminal has a right to control the commercial use of his identity such as his name and images. I was also shocked when I heard that the image was published because it was the first time ever the Korean police has allowed the publication of criminal's photographs. Although I was infuriated by the murderer, I felt sorry when I was thinking of his children who will also face prejudice in their lives just because of his father's wrongdoings.
Thursday, February 12, 2009
20 Dead as Taliban Attackers Storm Kabul Offices
Five Taliban suicide bombers and gunmen armed with explosives and rifles stormed the Justice Ministry Office in Kabul on Wednesday. The guerrillas took control of the office for more than an hour, causing casualties of 20 dead, and 57 wounded. It was more than an hour after when security forces finally retook control of the building and started to evacuate people in the building. Afterwards, all eight attackers were killed by security forces.The attack came on the eve of a scheduled visit by Richard C. Holbrooke, President Obama's special envoy to Afghanistan. Considering Kabul is the most heavily fortified capital in the country, it demonstrates that even such fortified capital can be a victim of Taliban attack without a more proper and prepared security system.
Mr. Holbrooke's visit to Kabul was made as a part of President Obama's policy in Afghanistan and Pakistan to increase American force levels in the regions. The degree of attacks like this made by Taliban in Afghanistan will definitely influence President Obama's policy to deal with Taliban, who is in control of much of the countryside and is gradually moving its forces into major cities, endangering people in the regions.
One senior official in Washington pointed out that the Wednesday's attack indicated the intimate ties between the insurgents and Pakistan's tribal areas, supporting that the attack was planned and supported by the Pakistan-based network of Jalaluddin Haqqani, which was also accused of the last summer's attack on the Indian Embassy in Kabul.Opinion: I have currently read a novel called The Kite Runner. The novel depicts Afghanistan and Pakistan societies in the present days with a man who brings a boy to the United States. The novel is based on the year 2001 when the capital city Kabul was under control of Taliban. In this article, I could learn that Taliban forces have now been removed from the major cities, and are now mostly in control of the countryside. However, now the Taliban forces are endangering the city by guerrilla attacks with a small group of bombers and gunmen. Therefore, I think that the United States and other world powers should protect Afghanistan from Taliban attacks by bolstering security levels with a more number of military forces. As President Obama's policy promises, it is important for the United States to send more troops to Afghanistan and . Moreover, the ties between Taliban and Pakistan's tribal areas should be investigated more thoroughly as such ties can hinder our attempts to bring peace back in the region. As well, I hope Pakistan could also join the United States' peacekeeping project and do their parts because they can make huge influences on Afghanistan as a neighbouring country. At last, it seems that President Obama's envoy, Mr. Holbrooke, was not successful in convincing Pakistan tribal areas not to help Taliban because the attack came right after his visit to the areas.
Monday, February 09, 2009
Peanut Case Shows Holes In Safety Net
The salmonella outbreak started in the Peanut Corporation of America plant in rural southwest Georgia and spread across the country. In 2007, it took eight people's lives and sickened 19,000 people. Many things, such as the conditions at the plant, have been accused of causing the salmonella outbreak. However, the conditions of the plant was only one of many elements that led to the outbreak. Most importantly and shockingly, it was the government's negligence in food safety net that has led to the outbreak.First of all, the Peanut Corporation of America plant in southwest Georgia was definitely one element. According to an inspection, the roasters were not calibrated to kill germs that are harmful to human health. Also, the workers were dressed in uniforms that contained contaminants. Even the roof of the plant was leaking when the facility should be kept dry in order not to let salmonella thrive.
An examination of the Blakely case reveals holes in food safety net and the indifference of the government in protecting its people from the consequences of the holes in safety net. According to interviews and government records, the state and federal inspectors who have investigated the plant did not require the plant to inform the public of the salmonella contamination in its plant. When a whistleblower inspected the ConAgra Foods factory and found out about the salmonella contamination in 2004, the Food and Drug Administration did not pursue the laboratory tests, letting them become a bigger problem and eventually killing people in the market.
The holes in safety net led to the distribution of salmonalla containing food products and eventually killed and sickened people. Three years later, in 2007, the government finally verified the inspector's claims and ConAgra improved conditions at its plant and increased laboratory testing. However, federal regulators still overlooked and did not impose higher standards on other peanut facilities, causing more and more problems and bigger holes in food safety net.
Opinion: I think the peanut case shows the lack of conscience among those people who run the plants and who inspect the plants. Death and illness of people caused by salmonella-contaminated peanut products could have been prvented if it were not for those indifferent and amoral people. The government should impose higher standards on peanut facilities. The government should also send out inspectors regularly to plants and test the procedure of making peanut products. Based on the inspection, those plants that fail to meet the standards should be closed down before making a bigger damage in people lives. Food is one of many elements in human lives that is directly related to a matter of life and death. I wish the government officials and people who are in food-related businesses are more honest and more caring in producing food.
Thursday, February 05, 2009
Obama Calls Wall Street Bonuses 'Shameful'
As the global economic downturn continues, Wall Street Bankers are accused of giving themselves nearly $20 billion in bonuses. President Obama criticized the bankers "shameful" for such immoral behaviours of the bankers, to whom the government granted billions of bail-out money to save the nation's most prominent financial institutions.President Obama pointed out to Treasury Secretary Timothy F. Geithner, "There will be time for them to make profits, and there will be time for them to get bonuses". He expects Secretary Geithner to send his message directly to the bankers.
Public anger over the economic crisis and high unemployment rate is rising and the government is trying to help prominent bankers ride out of the crisis and have the economy back on track. However, all the bail-out money seems to be used for the executive's good, rather than to rescue the economy. Such immoral activities demonstrate the necessity of imposing stricter restriction on pay for executives of institutions that receive government assistance.
As it seems it will take far more than $700 billion bailout fund, that has already been authorized, to stabilize banking system, President Obama and his administration will have to assure Congress that they will guide the right use of bailout fund. Mr. Geithner has already expressed his opinion to impose stricter compensation limits. President Obama's anger and criticism today shows that he will step up the pressure on bankers before granting them any additional fund.
Vice President Joseph R. Biden was also outraged by the large bonuses, "They're thinking the same old thing that got us here, greed. They're thinking 'take care of me.' " He pleged that the government will spend the remaining $350 billion of the troubled assets money "wisely and prudently and transparently."
Opinion: It was shocking to learn that the bailout funds granted by the government is being used in the ways that they are not supposed to. The money is being used to satisfy executive's greed when many people are struggling with unemployment rate caused by this economic downturn. Bonuses should be granted for those who have worked hard to help the company ride out of the economic crisis. They are the true people who deserve bonuses, not those executives who are busy filling up their greed. As Vice President Joseph Biden said, it is their limitless greed that got us here. I believe the government should not let this happen anymore. A stricter compensation limit should be imposed and if the law is not followed by certain financial institutions, they should not be granted any additional money. In addition to this, it is most important for the bankers to realize what they are supposed to do and what is a right thing to do. When they decided to be wise, prudent and transparent themselves, all the immoral activities caused by greed would disappear from this world and we all can truly see the hope of onset of new economy.
Thursday, January 29, 2009
Opinion: a backward-looking budget that looks supremely political
This blog is based on Hugh Mackenzie's opinion paper.Through the 2009 budget, Stephen Harper showed that he is only interested in meeting the political imperatives he imposed on himself in the November budget. Stephen Harper is oblivious of the fact that what Canadians really need is a budget that can effectively response to the current economic crisis.
Hugh Mackenzie identifies three key questions that will evaluate the budget's effectiveness:
- Is the fiscal stimulus it offers big enough?
- Does it put the additional funding in the right places?
- How does it position Canada to participate in inevitably changed economy that will emerge as the economic downturn reverse itself?
First of all, the fiscal stimulus the budget offers is not big enough at all. Hugh Mackenzie calculates that the budget's actual stimulus is only about 1.3 per cent of Canada's GDP, which is a considerably small amount of money among major industrial nations. This 1.3 percentage is barely two-thirds of 2 per cent suggested by the International Monetary Fund as an appropriate fiscal response. This means that it will take a longer period of time than it is necessary for Canada to go over this economic crisis.
Secondly, the additional funding is not put in the right places. Broad-based tax cuts do not make sense. Broad-based tax cuts will reduce the fiscal capacity which will make it difficult for Canada to overcome deficit, caused by the economic crisis, in the future.
Third, the budget is backward-looking; it does not prepare Canada for the future where the nation will confront inevitably changed economy after this economic crisis. With this budget in action, Canada will confront difficult times once again when other countries are moving forward.
Opinion: I agree with Hugh Mackenzie's opinion that the 2009 budget does not reflect what is necessary for Canadians, whom the government is supposed to serve. The budget does not give answers to the questions that are being asked by Canadians who were thrown into hardship with an onset of this economic crisis. I believe it is most important to balance out direct and indirect plans. Direct plans will support people or businesses who are struck by the economic crisis and need help to go over it. The indirect plans will establish fundamental sectors of economy such as new energy, and transportation. The indirect plans will help Canada prepared for the future when the country will have to survive in the changed economy. As well, I hope the Canadian government should come up with ways to relieve its people and reassure them that they can and will go through this economic crisis together as a whole. I hope the Canadian government can proudly oppose to Hugh Mackenzie who said, "It is also becoming obvious that what's good for Stephen Harper politically is not necessarily in the best interests of the Canadians he is supposed to be serving".