Economic Impact of Pollution: Article Analysis

Economic Impact of Pollution: Article Analysis Luis Andre Talavera Nunez CONTEMPORARY ECONOMIC ANALYSIS An analysis of Peter Cai’s article: â€Å"Iron ore the victim in Beijings smog crackdown in the Business† Published the 26th of February – 2015 in the website businessspectator.com.au EXECUTIVE SUMMARY Peter Cai’s article analyses the economic impact of the pollution produced by the steel factories in China and their repercussion in the steel market and the iron ore prices. The article takes as an example the city of Hebei, one of the most important steel producer centres of China, which suffers one of the most critical pollution levels of its history. The province’s strategic location close to Beijing, the Chinese capital is a contributor factor to the increment of smog in the metropolitan area. The social pressure that arises from this issue is forcing the government to take drastic decisions with potential socio-economic impacts. New environmental standards were created in order to regulate the emissions. The new policies have the power to shut down any factory that does not meet the minimum standards. This is creating a lot of pressure on the industry and forcing the steel makers to reduce output and, in some cases, to update their assets. This new policies come in line with the Chinese economy slow down and the reduction of demand for the steel and its main resource, the iron ore. This has generated a crisis in the steel manufacturing industry that has seen a reduction of revenue and an increase of the operational cost in the last year. There is a potential risk of massive plants shut downs due to an important number of the steel makers won’t be able to afford the high cost that an update represents. This is also a consequence of poor government regulations during the economic boom that did not stimulate the companies to reinvest the capital in new and cleaner technologies when the revenue was higher. The social pressure has forced the government to take strong policies orientated to reduce the steel production capacity with the aim to minimize and control the toxic emissions. This represents a massive economic impact for the government which will be affected by lower tax revenue and potential increase of unemployment. INTRODUCTION The Hebei province, well known as the biggest steel producer in China and the second worldwide, contributor of the 22.5 percent of the national steel output is facing a critical time. The reports demonstrate a fall of 0.6 percent from the total steel production in 2014 in comparison to the 2013 figures and China’s total production is expected to drop 1.07% to 814 million tonnes by 2015. (Stanway, 2015; the Australian, 2015). The main reason for this crisis is the reduction in demand for the Chinese market and the new environmental policies that restrict the operation of plants that exceed the new emission standards (Li 2013). This environmental issue has situated the province within the top 10 most contaminated cities in China and has been affected people’s health critically reducing life expectancy by five years (Cai P., 2015; Stanway, 2015). As a consequence, there is a strong social pressure that request fast solutions to a problem that seems not to have a sustainabl e solution in the short term. This article address the following issues: The economic impact of the reduction of steel production’s output in the province of Hebei and its repercussion on the steel and iron prices in the short and medium term. The impact of the new environmental policies that force the shutdown of steel’s factories that don’t meet the minimum emission standards. Reduction in the demand of steel, impact on the government revenue and increment in the unemployment rate. ECONOMIC THEORIES One of the most important parts of the article is the dynamic of the Chinese steel market and its influence in the iron global supply. In the last decade the Chinese demand and supply for steel have been growing consistently driven by the strong urbanization process (World Steel Association 2014). However, this figure is changing rapidly due to China’s growth slowdown and a shift towards an economic model orientated to consumption and less steel dependent. The performance indicators demonstrate that the Chinese steel markets not in shape (Serapio. 2014), face serious issues related to competitiveness, productivity, efficient logistics, infrastructure and technology. The chart below explains the relation between Supply and Demand during the last 7 years and the reduction in market growth as result of the deceleration. Figure 1 – Source: EYGM Limited. 2014. The effect of the reduction in steel demand has been reflected in lower steel prices as result of the existing excess of the capacity. The steel producers have no other option than become more competitive, orientating their efforts to improve productivity and reduce costs in order to maximize the profits. According Agrawal (EYGM Limited. 2014), this highly competitive scenario will lead to a flatter marginal cost curve along the productive sector, reducing the breach between the competitors. This means that any fluctuation in the market variables will affect most of the participants evenly. THE PARTICIPATION OF THE GOVERNMENT What is the position of the government? The Chinese government is facing two major issues. According Elliott (EYGM Limited. 2015), the two major contributor factors are the critical contamination levels in most of the major cities around the country as product of the poor regulation policy to the steel market and the socio economic pressure to maintain an industry that provides generous tax income and maintain low unemployment levels. As result of social pressure the government decided to apply new regulation policies with the aim to reduce the actual steel production capacity. The new industrial emission standards give the government the tools to shut down the plants that don’t meet the new environmental requirements (Jiabao, Li. 2013). The article mentions that the pollution reduction technologies are expensive and under the current steel prices and many of the current steel producers are not going to be able to afford the investment. This exemplifies a clear normative economic, where the government identify a problem and prescribe solutions based on facts. Un-employment is an additional impact that has to be managed by the government. According Cai’s article, â€Å"the new industrial policy could cost 200,000 direct jobs as well as another 400,000 indirect positions†. In the short term the chances of a rapid migration towards a cleaner and environmental friendly industry are almost impossible due to the economic situation that the China is facing at the moment.. Here is where the government must evaluate different tools like tax incentives in order to stimulate the migration to cleaner industries in the medium term. One fact that was not mentioned in the article is that the government possesses participation in some factories; these factories receive incentives that allow them to operate even in loss with the aim to maintain levels of employment. This creates a clear dead weight loss for the government (EYGM Limited. 2014). The government subsidies are illustrated in the graph below: Figure 2 – Deadweight loss of government subsidy in the steel market. P1 is the original market price for the steel and Q1 is the original demand. Pc is the price that the consumer pays after the subsidy whilst Ps is the real price including the subsidy. Qs is the quantity of steel produced as result of the subsidy, this represent inefficient production. The area highlighted in red represents the deadweight loss to that the society pays as product of the government subsidy. CONCLUSION Cai’s article highlights the complex situation that the Chinese steel market is facing these days, as well as, the economic, environmental and social repercussion of its reduction capacity and the roll of the government in the market regulation. The article makes reference to production figures that can be easily tracked and verified in diverse economic reports. There are two points that the article doesn’t cover in deep. The subsidies of the government to some steel makers and how this affects the supply and the effect of the Iron Ore price fluctuations in the Chinese steel market. It’s clear that the social pressure is changing the traditional political Chinese scenario, characterized by their authoritarian decision making at the moment to approve and put in practice government interest policies. The demand for a better air quality reflects a new scenario where the politicians are willing to listen and negotiate. The short term solution of shutting down factories that don’t meet the environmental standards is only a policy that can alleviate the current contamination but does not provide a sustainable solution to the underlying problems: Maintain the competitiveness of Chinese market under optimal environmental standards. Reduce unemployment and also guarantee the resources that the country required to continue growing sustainably. The priority in a long term is to promote the development of more environmental friendly industries that can produce the high end products that China will require in the future. However, this is a big risk considering the investment and time required to transform an industry that has been considered one of the most traditional and important in China. REFERENCES Cai, P. (2015). â€Å"Iron ore the victim in Beijing’s smog crackdown†. Business spectator. Retrieved from http://www.businessspectator.com.au/article/2015/2/26/china/iron-ore-victim-beijings-smog-crackdown. EY Limited (2014). â€Å"Global steel 2014, planning to profit from opportunity: preparing for future demand†. Retrieved from http://www.ey.com/Publication/vwLUAssets/EY_-_Global_steel_2014/$FILE/EY-Global-steel-2014.pdf The Australian (2015). â€Å"China’s steel production to fall†. Retrieved from: http://www.theaustralian.com.au/business/mining-energy/chinas-steel-production-to-fall/story-e6frg9df-1227208363291 Serapio, Manolo. 2014 â€Å"China steel demand shrinks for first time in 14 years as slowdown stings†Ã‚  http://www.reuters.com/article/2014/09/25/us-china-steel-idUSKCN0HK0Z320140925 Stanway, David. 2015. â€Å"Steel output dips 0.6 pct in Chinas Hebei in 2014†Ã‚  http://www.reuters.com/article/2015/01/26/china-steel-hebei-idUSL4N0V51DK20150126 World Steel Association. 2014. â€Å"World Steel in figures 2014†Ã‚  http://www.worldsteel.org/dms/internetDocumentList/bookshop/World-Steel-in-Figures-2014/document/World%20Steel%20in%20Figures%202014%20Final.pdf EYGM Limited. 2015. â€Å"Global steel 2014 Planning to profi t from opportunity: preparing for future demand†Ã‚  http://www.ey.com/Publication/vwLUAssets/EY_-_Global_steel_2014/$FILE/EY-Global-steel-2014.pdf Jiabao, Li. 2013 â€Å"Plant shutdowns likely as emission standards kick in†Ã‚  http://usa.chinadaily.com.cn/business/2013-03/15/content_16310734.htm American Economic Review. 1997  http://www.swlearning.com/ibc/hall/pdf/CH1a_hl.pdf

Bisexual Discrimination Essay

Sexuality has in the history of mankind occupied a very important pat of the society. In all history of mankind, it has been hard to categorize people in any other form without one’s sex playing an important role. However the problem is not the biological sex differences. The problem is the sex roles the society has allocated to men and women, making it look like there are some things that women can do but men cannot do, and that there are some roles boys can play but girls cannot. This has come to be known as gender mainstreaming. This paper examines bisexuality in the society and how it has led to discrimination to those who do not subscribe to the majority’s sexual orientations. Bisexuality refers to a situation whereby a person desires to engage in romance or sex with both males and females. However most bisexuals tend to have an affinity for either males or females and it is often rare for a bisexual to balance the desire to both sexes. According to Kinsey Scale (Klein & Wolf, 1985) bisexuals are predominantly heterosexual and incidentally homosexual. Therefore bisexual could be characterized by aesthetic attractions for members of the opposite sex and does not necessarily have to involve romance or actual sex (Klein & Wolf, 1985). Although bisexuality was in the past confused with hermaphrodites, the term has become very popular and new terminologies have emerged to further clarify bisexuality. Such terminology include Biphobia which refers to the fear which bisexuals are subjected to by being rejected by people from mainstream sexual orientations such as heterosexuals and homosexuals who hold that, bisexuality is not an appropriate lifestyle. Bisexuals are also faced with homophobia which stems from the fear of rejection and dejection by people who only believe in heterosexuality as the only appropriate lifestyle and therefore do not recognize bisexuality as a lifestyle. This leads to the discrimination of the bisexuals by heterosexuals who form the greater part of the society. According to (Greene, 2000), about 2% of the American populations are bisexuals. This is an indicator that bisexuals form a considerable proportion of the American society and therefore deserves to be listened to and recognized in all social dimensions. Most of the problems being experienced in terms of fighting the discrimination being leveled against bisexuals have got something to do with how the society at large constructs sex. Most people look at life from the dimension of duality (Peplau, & Garnets, 2000), something which leads many people to have problems comprehending how people can comfortably engage in sexual or romantic relationships with either sex. This has led to stereotypes which in turn have led to discrimination. Bisexuals have been faced by numerous challenges in their endeavor to gain recognition from the society. These challenges mainly stem from the tendency of most bisexuals to have the phobia to come up in the open and reject discrimination while at the same time making their points known to the society. Conflicts dominate most of the bisexuals’ life spheres like marriage, education and job. Bisexuals in a marriage get it very difficult to open up to their spouses and confess about their sexual orientations in fear of rejection by their partners or outright rejection. This can be very trying moments for bisexuals and therefore many results into living in self-denial. Despite the fact that there are many married people who are bisexual; opening up is not something many are ready to do. The reality of divorce does not attract many in that, many bisexuals interact in public as heterosexuals unlike it is the case with homosexuals and heterosexuals where partners something which is widely regarded as infidelity in the society. The other major challenge facing bisexuals is recognition by religious organizations. Most religious sects have a problem recognizing any other sexual orientation apart from heterosexuality. This presents great challenges to those who happen to be spiritual as it turns that their lifestyles do not agree with their religious doctrines. This is very challenging and is a common source of discrimination for bisexuals. Bisexuals are faced with an identity crisis arising from the above challenges and this is currently a major worry for bisexuals whose right to expression is greatly affected by challenges evident in the religious, social, marital as well as work life. Cultural barrier continues to be a source of discrimination for bisexuals. Most cultures are traditionally male dominated and the social structures are constructed such that; the man is the head of most households (Lane, & Goeltz, 1998). The issue of bisexuality has not quite been received well in most traditional cultures. This presents hardships to bisexuals who wish to lead normal lives as bisexuals but at the same want to fit in the culture. This is evident in schools whereby the education system does not take into consideration the needs of bisexuals but assumes that everyone is heterosexual. This is agonizing for bisexuals whose interests are not well taken care of, which is clearly a source of discrimination. Bisexuals currently seem to be the latest victims of the unending obsession of sexuality in the society. Discrimination on the basis of one’s sex occurs when an individual is denied some rights and freedom on the basis of their beliefs concerning sex and relationship. Usually, sexual discrimination is common in cases whereby the victim belongs to a minority sex group such as bisexuality, and homosexuality. Consistent fight for equal rights for homosexuals and heterosexuals led to the recognition of the homosexuals as social bonafide groups. Today in many states, homosexuals can be proud of their sexual orientation, express themselves freely and also seek social rights. Some states recognize and allow homosexuals to marry. It is no longer a big issue for one to be gay or lesbian. The society has now evidently turned the heat on bisexuals. However the reasons for this discrimination are baseless some of the common reasons opponents of bisexuality give are; it is awkward, it is backward, and it is strange (Peplau, & Garnets, 2000). These are some of the reasons being advanced by opponents of bisexualism. Clearly, the above reasons are baseless and lack empirical support as they do lack in any legal backing. This has made it particularly hard for bisexuals to lead normal lives not only in colleges but in all spheres of life such as the work place. Bisexuals are even facing discrimination from homosexuals who having gone through the same experience of discrimination, should be in the forefront of protecting and defending the bisexual movement. Unfortunately that is not the case. Homosexuals just like the heterosexuals are not about to relent in their discrimination against bisexuals. This is totally unacceptable and is in direct violation of the rights of the bisexuals. The fact that the bisexuals are only a minority in the community and therefore cannot wage a strong ‘war’ against discrimination has made bisexuals to continue to suffer unfairly. Sexual discrimination takes a lot of forms and is manifested in the workplace, in accessing education, accessing of job opportunities, as well as in the accessing of social security. The access to opportunities based on sex is discriminatory in that, it favors people from some sexual orientations and oppresses others. In the U. S. , the legislation that protects people from discrimination based on sex is the Title VII, in Civil Rights Act of 1964 (Randen, 2001). The law has been criticized due to the fact that it only addresses issues surrounding sexual harassment that is applicable to the work place but fails to address sexual discrimination in other contexts. The Equal Pay Act of 1963 is the other law in the US that covers those facing or are under threat of sex discrimination. Again, this law like the others only covers some members of the community and does not take good care of bisexual interests. Conclusion There is a need for the society to be enlightened in regard to emerging trends in sexual orientations and lifestyles. This is possible through interest groups and the government putting in effort in terms of legislations, awareness campaigns, and incorporation of sex education into the education curriculum. All the above measures, will lead to a better understanding of bisexuality and therefore the discrimination currently being directed towards bisexuals is likely to cease. It is possible for bisexuals to overcome the current discrimination, only if the bisexuals continue in the fight against sex discrimination. References Greene, B. (2000). African American Lesbian and Bisexual Women. Journal of Social Issues, 56(2). Klein F. and Wolf T. (1985). Bisexualities: Theory and Research. Haworth Press, New York. Lane, R. and Goeltz, W. (1998). Identity confusion, bisexuality, and flight from the mother. Clinical Psychology Review, 18(3). Peplau, L. and Garnets, L. (2000). A New Paradigm for Understanding Women’s Sexuality and Sexual Orientation. Journal of Social Issues, 56(2 Randen, H. (2001). Bi Signs and Wonders: An interview with Robyn Ochs. Journal of Bisexuality, 1(1): 5-26.

Health Care Services and Illegal Immigrants - 753 Words

Imagine you have an illness that causes your kidneys to malfunction, and that requires you to be attached to a machine that then does the job for your kidneys. As your blood flows from your body and into a machine to be filtered of toxins and returned, you wonder for the next three hours about how you will be able to get this procedure called dialysis two more this week in order to live. This is an example of what illegal immigrants with renal failure endure. On average, patients receiving dialysis are given a life expectancy of three to five years unless an organ transplant is received (**). Providing health care is a public good, a human right to receive care, not just a right to the insured or based ones citizenship status. The ethical dilemma that is presented leads to the following question: Should an immigrant requiring regular dialysis be denied care due to their undocumented status? The ethical dilemma presented As the hospital administrator, there is a growing concern with the increased that illegal immigrants in need of dialysis often frequent our emergency room. This places a great burden of ethicality on our facility. The ethical dilemma presented is has been to deport based on the patients documented status or continue to treat. Reimbursement is often denied when the patient is an illegal immigrant. This leaves the hospital to absorb the funds expended on providing the dialysis treatments. Hospitals are in a quandary about how to approachShow MoreRelatedThe Economic Impact Of Illegal Immigration902 Words   |  4 PagesThe economic impact of illegal immigrants in Texas has brought concerns for the state s economy. Such as opportunities, health care, and education. Illegal immigrants contribute both positively and negatively to the Texas economy. They contribute positively by paying for taxes such as sales taxes, health taxes and taxes imposed on items. 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The Effects of the War on Drugs Essay - 1222 Words

Pro-legalization of Drugs Most Americans regard illegal drugs as one of the nations’ most serious problems, but two generations after the â€Å"war on drugs† began, disagreement remains on what should be done. Today’s society is suffering rapid decay due to the never ending war against drugs. Effects of this war like murder, corruption and many other undesirable things are developing and burning through this country’s core while the powers that be debate whether or not drugs should be legalized. Legalization is an option that should be heavily considered. It would be a way to control the import an export of drugs. As well as deter the abuse of drugs. Futhermore, legalization of drugs will stop an enormous number of deaths and crimes.†¦show more content†¦Unfortunately bill did not pass the November 2010. As of right now a citizen can posess up to an ounce of marijuana an not be penalized. Legalizing drugs would increase our economy’s revenue. Lets examine prohibition era as an example. Alcohol was constantly sold and used, but people were doing it illegally. The creation of 21st amendment repealed prohibition and alcohol taxes were increased. If the government were to use the same formula with drugs. Once taxes are applied to the sale of drugs , revenues would increase dramatically. The same companies that manufacture over the counter and prescription drugs can bare the responsibility of regulation illegal drugs in the same fashion. The paraphernalia needed to injest the drugs can also be regulated and taxed for the benefit of the economy. By legalizing drugs states and local governments would save some 25.7 billion dollars a year in time an manpower toward enforcement of current drugs and jail costs. On the federal level cost could be cut by as much as 15.6 billion for a total 41.3 dollars. 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