Effects of inflation Term Paper Example | Topics and Well Written Essays - 1750 words

Effects of inflation - Term Paper Example The reduction in investments level will lead to a reduction in economic growth levels which depend on the level of investments. Inflation makes it hard for firms to plan for the amount of output to produce since the firms cannot forecast the demand for their product at the higher prices they will have to charge to cover costs. High inflation causes speculation on prices and interest rates which in turn increases the risk among potential trade partners, discouraging trade. Inflation reduces the value of depositor’s savings and as well reduces the value of bank loans. In the long run, the company’s revenue and earnings should increase at the same pace as inflation. But it could also reduce the confidence of investors by reducing confidence in investments that take a long time to mature. When there is a high rate of inflation a firm may look as if it is doing well when inflation is the reason behind the growth (Wildermuth, 2012).The effect of inflation on investment occurs directly and indirectly. People are not ready to enter into contracts when inflation cannot be predicted making relative prices uncertain. This reluctance to enter into contracts will affect economic growth. High inflation leads to financial repression as governments take action to protect certain sectors of the economy.Inflation is particularly detrimental to retirees whose pensions and financial investments have to be adjusted for inflation. Pension payments are now indexed to inflation in order to reduce the effects of inflation... When there is a high rate of inflation a firm may look as if it is doing well when inflation is the reason behind the growth (Wildermuth, 2012). The effect of inflation on investment occurs directly and indirectly. People are not ready to enter into contracts when inflation cannot be predicted making relative prices uncertain. This reluctance to enter into contracts will affect economic growth. High inflation leads to financial repression as governments take action to protect certain sectors of the economy. Inflation is particularly detrimental to retirees whose pensions and financial investments have to be adjusted for inflation. Pension payments are now indexed to inflation in order to reduce the effects of inflation Inflation can lead to a poor performance in the stock markets. In times of high inflation, if the firms cannot pass on the extra cost to the consumers they will most likely end up making losses. This will reduce the viability of their stocks and lead to the investors w ho had invested in the firms' stocks will suffer financial setback as the company makes losses. It leads to the changes in the preferred assets held by the wealthy individuals in a country. In the initial stages the three would be a preference for intangible assets so as to make a killing from the interest rates but as inflation increases there is capital flight from the stock markets by foreign and domestic investors and who instead invest their wealth in tangible assets whose value is not likely to be eroded swiftly by the inflationary tendencies. Inflation leads to a reduction in the balance of payments. When the domestic price level rises faster than it is rising

Network Security Plan Essay Example for Free

Network Security Plan Essay INTRODUCTION (Purpose and Intent) The Corporation Tech IT Network Security Plan establishes guidelines for IT practices used on a day to day basis to provide a secure and robust computing environment. These practices are used in order to protect the mission, operation, and reputation of Corporation Tech System and its information systems. These system security policies, standards, and procedures that have been established for the Corporation Tech System, are intended to comply with the regulations and policies set down by the State of Florida, Corporation Tech, and the Federal Information Security Management Act (FISMA). SCOPE These standards and procedures apply to all information systems and resources under the control of Corporation Tech, including all computers connecting to the Corporation Tech network and all Corporation Tech System employees, contractors, and any other individuals who use and/or administer those systems and computers, particularly those involved with information system management. STANDARD PROVISIONS Corporation Tech IT will manage risk by identifying, evaluating, controlling, and mitigating vulnerabilities that are a potential threat to the data and information systems under its control. User accounts and passwords are implemented to maintain individual accountability for network resource usage. Any user who obtains an account and password for accessing a Corporation Tech provided resource, is required to keep these credentials confidential. Users of these systems may only use the accounts and passwords for which they have been assigned and authorized to use, and are prohibited  from using the network to access these systems through any other means. This plan also prohibits the sharing of personal user accounts or passwords for accessing Corporation Tech or Internet computing resources. In the interest of maintaining account security, passwords will be changed on a regular schedule or anytime the integrity of the account is in question. Corporation Tech IT network or computing resources may not be used for personal commercial purposes, for personal profit or to violate the laws and regulations of the United States or any other nation, or the laws and regulations of any state, city, province or other local jurisdiction in any material way. Use of Corporation Tech resources for any illegal activity may result in loss of network access privileges, official reprimand, suspension or dismissal. Corporation Tech will cooperate with any legitimate law enforcement agency or inquiry in the investigation and prosecution of any alleged wrongful activity. Corporation Tech’s network or Internet facilities may not be used to disable or overload any computer system or network, or to circumvent any system intended to protect the privacy or security of another user. Corporation Tech owned networking and communications equipment, may only be moved by Network and Computing Support staff, or authorized agents. Reconfiguration of network hardware or software, except by designated individuals within IT, is strictly prohibited. Prior to connecting any server, network communication or monitoring device to the Corporation Tech Network, approval must be obtained from Data Center Communications. Attachment of any the following devices to the Corporation Tech network, other than those provided or approved by Network and Computing Support, is strictly prohibited: a. DHCP servers. b. DNS servers. c. NAT routers. d. Network Gateways. e. Packet capturing or network monitoring devices. f. Any device that disrupts or negatively impacts network operations. STATEMENT OF PROCEDURES The procedures for conducting a risk assessment and for the control and mitigation of risks to the Corporation Tech Information Systems include: NETWORK CONTROL Corporation Tech IT has software and systems in place that have the ability to monitor and record network, Internet and computer system usage. This includes monitoring and security systems that are capable of recording network traffic, including traffic to World Wide Web sites, chat rooms, newsgroups and e-mail messages, file servers, telnet sessions and file transfers into and out of our internal networks. This capability is necessary in order to maintain the health of Corporation Tech network operations and diagnose network related problems. Corporation Tech IT reserves the right to perform network monitoring at any time. The information collected may be used by technicians and management to assess network utilization and trends, and may also be provided to upper management or other authorities as evidence as part of any investigation of alleged policy violations. Corporation Tech IT reserves the right to perform periodic port scans, segment sweeps, and vulnerability scans on all network segments. Network operations, functions, and resources, which are not required as part of the normal and approved job duties or projects at Corporation Tech, may be bandwidth limited or blocked by network control devices in order to protect the integrity and availability of the overall system. Corporation Tech IT may suspend network access to any location or system that disrupts normal network operations or systems that violate Corporation Tech policy. In this event, an attempt will be made to contact the responsible individual to resolve the problem. DHCP SERVICES Corporation Tech IT provides centralized and redundant DHCP and DNS services for Corporation Tech. Due to the nature of these services, and because of the potential disruption of service and possible security breaches resulting from incorrect setup of additional systems, attachment of unauthorized DHCP or DNS servers is prohibited. The following guidelines must be followed when requesting or using any DHCP or DNS services: †¢ Systems requiring an IP address must support DHCP and be capable of obtaining DHCP address information from one of the centrally administered University DHCP servers. †¢ Using DHCP, devices requesting an IP address will be assigned a dynamic pool address from the subnet to which the device is attached. Devices with dynamically assigned IP addresses may have their address change. †¢ Static IP addresses needed for server class machines or specialized clients must be  requested from the Data Center Communications Team via a Help Desk ticket. DNS SERVICES User workstations, which have been assigned a dynamic pool IP address, will have an associated DNS name assigned by the network. Any DNS name or domain name that is to be associated with Corporation Tech network, must be requested from and/or registered through Web Services. DNS names ending in corptech.com are made available upon request for Corporation Tech approved services. Requests for assignment of DNS names must be for valid Corporation Tech related purposes. DNS names for domains other than corptech.com, and which are to be hosted by Corporation Tech systems, must be requested from Web Services. Any charges for initial or ongoing registration of the requested name are the responsibility of the requestor. DNS names, not in the corptech.com domain, will be handled on a case by case basis. Corporation Tech IT will work with any user requesting a domain name to identify an appropriate and available name, however Corporation Tech IT has final approval for all DNS name assignments. WIRELESS NETWORK SERVICES Because wireless networks can be used to provide access to the same resources and services as wired network systems, the same basic procedures that are used in a wired network environment can also be applied in a wireless network environment. However, due to the nature of wireless networks, additional security and control mechanisms are needed in order to maintain the security, operation and inter-operability of both traditional and wireless systems. Wireless routers are not allowed on the Corporation Tech network unless they have been approved by Corporation Tech IT. Access to the Corporation Tech Wireless network is limited to individuals who have a Corporation Tech account except in locations where the guest network is available. The Corporation Tech Guest Network is segregated from the internal servers and resources used by authenticated users to keep the network secure. The Corporation Tech Guest Network is only available in approved areas, and require a request to be expanded into any other areas. Users of the Corporation Tech Guest Network are required to provide a valid cell phone number in order to authenticate. Destruction and Disposal of Information and Devices Restricted information must be disposed of in such manner as to ensure it cannot be retrieved and recovered by unauthorized persons. When donating, selling, transferring, surplusing or disposing of computers or removable media (such as DVDs), the proper procedures to make data unreadable on those media will be taken. Acceptable procedures are listed on ISSP-009, â€Å"Medial Disposal.† NETWORK ACCESS Anyone who uses the Corporation Tech computing environment must have appropriate status (e.g. management, employee, staff, or authorized third party) and must be properly authenticated when required. Access will be provided to vendors and or other Corporation Tech partners through the sponsored VIP account process, as described on http://www.corptech.com/it/services/vip.aspx. VIP accounts are reviewed and renewed on six month intervals to see if access is still needed. When an employee leaves the organization accounts will be disabled once TERM status is updated, and individual departments must approve re-activation of account access. USER COMPUTING DEVICES Users are responsible for the security and integrity of Corporation Tech information stored on their workstation, which includes controlling physical and network access to the equipment. Users may not run or otherwise configure software or hardware that may allow access by unauthorized users. Anti-virus software must be installed on all workstations that connect to the Corporation Tech Network. Corporation Tech Computers may not be used to copy, distribute, share, download, or upload any copyrighted material without the permission of the copyright owner. PHYSICAL ACCESS Access to Corporation Tech IT Data Center should be restricted to those responsible for operation and maintenance. Access by non-IT personnel is not permitted unless they are escorted by an authorized IT staff member. Computer installations should provide reasonable security measures to protect the computer system against natural disasters, accidents, loss or fluctuation of electrical power, and sabotage. Networking and computing hardware are placed in secure and appropriately cooled areas for data  integrity and security NETWORK HARDWARE Network hardware are housed behind a locked door to protect physical access to switches and other network hardware. Access is only allowed though card access or with a checked out key. All switches and network hardware are password protected at a minimum via a local account setup on the device itself, these passwords are changed periodically as administrators leave the organization. Subnets allowed to authenticate with switch management will be restricted, to create tighter control of backend administration. Exec level access Timeouts implemented on Console and VTY lines, so that any idle sessions are terminated automatically. All switches are time synced using NTP, so that incidents can be tracked and correlated to the proper timeframe. SERVER ENVIRONMENTS All servers are subject to a security audit and evaluation before they are placed into production. Administrative access to servers must be password protected and use two-factor authentication whenever possible. Servers should be physically located in an access-controlled environment. All internal servers deployed at Corporation Tech must be owned by an operational group that is responsible for system administration. Servers must be registered with the IT department. At a minimum, the following information is required to positively identify the point of contact: a. Server owner contact(s) and location. b. Hardware and Operating System/Version c. Main functions and applications d. MAC address (If not a virtual server) Services and applications that will not be used must be disabled where practical. Access to services should be logged and/or protected through access-control methods to the extent possible. The most recent security patches must be installed on the system as soon as practical. Do not use administrator or root access when a non-privileged account can be used. Privileged access must be performed over secure channels, (e.g., encrypted network connections using SSH or IPSec). EXCEPTIONS All requests for exceptions to these standards and procedures will be handled by request, and will follow these guidelines: †¢ Must be submitted in writing to and approved by the CIO or with the proper authority. †¢ Will be reviewed on a case by case basis. NETWORK SECURITY Corporation Tech network design is built around three principles, Defense-in-Depth, Compartmentalization of Information and Principle of Least Privilege. Our first step was to look at what we are protecting, which is ultimately our business and clients data and information. To ensure a sound architecture we started the design of our network with scalability in mind. It is important that our design is flexible enough to meet future needs. The threats we know about and face today may not be the ones we face tomorrow. While developing security requirements for our IT system resources, we will determine if they are mission-critical or data-sensitive resources. This will allow us to determine where data confidentiality and integrity are the most important requirements, or where the priority is continuity of operation (availability). DEFENSE-IN-DEPTH Network safeguards offer the first protection barrier of IT system resources against threats originating outside the network. These threats can be in the form of intruders or malicious code. Our network design offers layered protections. What this means is the security layers complement each other; what one misses the other catches. This will be accomplished by locating security defenses in different places throughout our IT system, as well as not using two of the same types of safeguards. Although this may increase the complexity of our security system and can potentially make management and maintenance more difficult and costly, we believe the safety of the IT system resources should be based on the protection. With defense-in-depth in mind, the first layer of our network security plan starts with our network perimeter security. The principle network security defenses are firewalls, intrusion detection and prevention systems (IPS/IDS), VPN protections and content inspection systems like anti-virus, anti-malware, anti-spam and URL filtering. The traditional first line of defense against attacks is typically the firewall, which is configured to allow/deny traffic by  source/destination IP, port or protocol. It’s very straight forward, either traffic is allowed or it’s blocked. With the advent of Next Generation firewalls, which can include application control, identity awareness and other capabilities such as IPS, web filtering, and advanced malware detection, all of these features can be controlled by one device. COMPARTMENTALIZATION OF INFORMATION Corporation Tech will have IT system resources with different sensitivity levels or different risk tolerance levels and threat susceptibilities. These resources should be located in different security zones. The idea is to hide the data or information and make it available only to those systems where it is necessary for conducting system tasks. Examples of this are: †¢ E-mail, Web and DNS servers are located in the DMZ behind the perimeter firewall. †¢ Databases servers such as SQL servers are located in the Database Zone, within the internal firewall/IPS. †¢ Intranet servers, file servers and user workstations are in the LAN zone within the internal firewall. †¢ The Internet is located in the Internet zone behind the perimeter firewall. Principle of Least Privilege Corporation Tech administrators and users will have minimal privileges necessary for proper functioning within the organization. This rule applies also to data and services made available for external users. An extension to this rule is the â€Å"Need-To-Know† principle which says that users and administrators of Corporation Tech IT system have access to only the information relevant to their role and duties performed. Other points of security that we will address in our network services availability is the single point of failure principle, the separation of duty and job rotation rules. The network paths between users and mission-critical IT system resources, all the links, devices (networking and security) as well as the servers will be deployed in redundant configurations. The goal of the separation of duty and job rotation rule is to limit an employee’s ability to neglect and break the IT system’s security policy. Separation of duty dictates that important tasks/functions should be performed by two or more employees. Job rotation states that there should be rotation of employees in important positions. NETWORK HARDENING For each layer of security, we will ensure they are running the most up-to-date software and operating systems, and that the devices are configured properly. SECURITY ZONES Intrusion Prevention (IPS) devices are responsible for detecting and blocking penetrations and attacks conducted by intruders and malicious malware applications. We recommend an IPS be installed in the network path between potential threat sources and sensitive IT system resources. Attacks through encrypted SSL sessions are a potential vulnerability so we recommend decrypting the sessions prior to it reaching the IPS device in order to inspect unencrypted packets. The IPS will be properly optimized and monitored to catch attackers that have slipped past the first defense (firewall/router). Internal networks will not have direct access to the Internet so a Trojan sent to a user’s workstation through a phishing attack would not allow the intruder to connect to the external network. Internet services are available for internal users only through company email and HTTP Proxy servers. ENABLE SECURE NETWORK ACCESS We will install a VPN that is configured to allow encrypted communication to our network from the outside. Utilizing two-factor authentication, ensuring the integrity of the users making the request. This is external-facing to our network and allows users to tunnel into our LAN from the outside once the appropriate measures are taken to secure access. SEGMENTED DMZ There will be a front-end firewall for the external traffic and a back-end firewall for the internal traffic. Firewall rules will be optimized and tightened on all publicly available systems to allow traffic to only the necessary ports and services living within the DMZ. Firewall rules have been created to only allow the source IP addresses and port to the specific servers and proxies have been added in the network from which administrators are allowed access to the systems. Systems within different VLANs (with a layer 3 switches) have been configured to help isolate and respond to incidents if a server in the DMZ is compromised. Authentication on the LAN is required before access to the DMZ is even attempted. This prevents allowing complete control over these systems at any given time. DEVICE  INTEGRITY All hardware and software will be purchased only from the manufacturer or from resellers who are authorized and certified by the equipment manufacturer. Unused physical interfaces on network devices will be shut down. Access lists that allow only those protocols, ports and IP addresses that are required by network users and services are implemented. Everything else is denied. Network device configuration file are protected from unauthorized disclosure. Steps have been taken to avoid plaintext passwords in the configuration files. This has been accomplished by using encryption and/or a salted hash with iteration to protect the confidentiality of passwords in configuration files. Change passwords/keys immediately if the network device configuration file is transmitted in the clear (or is otherwise exposed) while containing non-encrypted passwords/keys. Secure protocols will be used when transmitting network device configuration files. All unneeded services on network devices must be sh ut down. Log files will be reviewed regularly to gain an in depth understanding of normal network behavior. Any irregularity will be reported and investigated. SECURE MANAGEMENT Only secure protocol standards (SSHv2; IKEv2/IPsec; TLS v1.0+) will be used when performing remote management of network devices. Default usernames and/or passwords will not be used. The network infrastructure security policy should define password length and complexity requirements. Review the network infrastructure security policy. This policy identifies who is allowed to log in to network infrastructure devices and who is allowed to configure network devices, and defines a plan for updating network device firmware at scheduled intervals. PORT VULNERABILITES Port 25 – Is used for SMTP (Simple Mail Transfer Protocol). It uses both tcp and udp protocols. This port used for e-mail routing between mail servers and is susceptible to many known Trojan’s. We are keeping this port in a closed state. Port 80 – Is used for web traffic Hyper Text Transfer Protocol (HTTP). It uses both tcp and udp protocols. Port 80 udp is also used by some  games, like Alien vs Predator. Code Red and Nimda worms also propagate via TCP port 80 (HTTP). Also, a number of trojans/backdoors use these ports. We are keeping this port in a closed state. Port 139 – Is used for NetBIOS. NetBIOS is a protocol used for File and Print Sharing under all current versions of Windows. By default, when File and Print Sharing is enabled it binds to everything, including TCP/IP (The Internet Protocol), rather than just the local network, meaning your shared resources are available over the entire Internet for reading and deletion, unless configured proper ly. Any machine with NetBIOS enabled and not configured properly should be considered at risk. The best protection is to turn off File and Print Sharing, or block ports 135-139 completely. We will leave this port in an open state but will turn off file and print sharing capabilities. Port 1900 – Is used for SSDP, UPnP. UPnP discovery/SSDP, is a service that runs by default on WinXP, and creates an immediately exploitable security vulnerability for any network-connected system. It is vulnerable to denial of service and buffer overflow attacks. Microsoft SSDP Enables discovery of UPnP devices. We are keeping this port in a closed state. Port 2869 – Is IANA registered for: ICSLAP. It uses both tcp and udp protocols and is used for Microsoft Internet Connection Firewall (ICF), Internet Connection Sharing (ICS), SSDP Discover Service, Microsoft Universal Plug and Play (UPnP), and Microsoft Event Notification. We will leave this port in an open state. Port 5357 – Is used by Microsoft Network Discovery, and should be filtered for public networks. It uses both tcp and udp protocols. It is also IANA registered for: Web Services for Devices (WSD) a network plug-and-play experience that is similar to installing a USB device. WSD allows network-connected IP-based devices to advertise their functionality and offer these services to clients by using the Web Services protocol. WSD communicates over HTTP (TCP port 5357), HTTPS (TCP port 5358), and multicast to UDP port 3702. We will close this port and redirect traffic to HTTPS (TCP port 5358). Port 6839 – This port is not associated with any particular services and should be closed unless it is associated and used. Port 7435 – This port is not associated with any particular services and should be closed unless it is associated and used. Ports 9100, 9101 and 9102 – These TCP ports are is used for printing. Port numbers 9101 and 9102 are for parallel ports 2 and 3 on the three-port HP Jetdirect external print  servers. It is used for network-connected print devices. These ports should remain open to allow print services. There are no listed vulnerabilities associated with these ports. Port 9220 This port is for raw scanning to peripherals with IEEE 1284.4 specifications. On three port HP Jetdirects, the scan ports are 9290, 9291, and 9292. It is used for network-connected print devices. This port should remain open to allow print services. There are no listed vulnerabilities associated with this port. Port 9500 – TCP Port 9500 may use a defined protocol to communicate depending on the application. In our case we are using port 9500 to access the ISM Server. The ISM Server is used for exchanging backup and recovery information between storage devices. This port should remain open while services are in use. There are no listed vulnerabilities associated with this port. Port 62078 This port is used by iPhone while syncing. The Port used by UPnP for multimedia files sharing, also used for synchronizing iTunes files between devices. Port 62078 has a known vulnerability in that a service named lockdownd sits and listens on the iPhone on port 62078. By connecting to this port and speaking the correct protocol, it’s possible to spawn a number of different services on an iPhone or iPad. This port should be blocked or closed when service is not required on the device. References BEST: Network Security Policy and Procedures. (n.d.). Retrieved from http://www.ct.gov/best/cwp/view.asp?a=1245q=253996 Example Security Plan. (2014, November 17). Retrieved from http://www.binomial.com/security_plan/example_security_plan_template.php Hardening Network Infrastructure Security Recommendations for System Accreditors. (n.d.). Retrieved from https://www.nsa.gov/ia/_files/factsheets/Hardening_Network_Infrastructure_FS.pdf Network Security Policy: Best Practices White Paper Cisco. (2005, October 4). Retrieved from http://www.cisco.com/c/en/us/support/docs/availability/high-availability/13601-secpol.html Paquet, C. (2013, February 5). Security Policies Network Security Concepts and Policies. Retrieved from http://www.ciscopress.com/articles/article.asp?p=1998559seqNum=3 SANS Information Security Resources | Information Security Policy Templates |.

College Admissions Essay - Defining Myself :: College Admissions Essays

The joy of writing admissions essays! I think it's good that I do this, that I solidify my thoughts into writing. Yet in pouring my feelings into words, I worry that they will become the structure I give them; that my liquid essence will take the shape of whatever phrases I choose; that my thoughts will be defined by the words I use and confined to the rigid boundaries of a language unable to accommodate the fluidity of my mind; that they will be limited to one distinct avenue when a linear direction does not suffice to express these multi-variable musings. It is easier to float in the sea of my unarticulated thoughts than to build a language boat and sail on a definite course, but in allowing myself to drift at the whim of my mind's currents, I get nowhere. In articulating myself, I create a solid manifestation to which I can look and say, "That's what I believe." I may not define my feelings poorly when I leave them unspoken, but in refusing to solidify what I believe I have nothing: nothing to share, nothing to grow on, nothing by which to determine who I am. And so I take the risk of losing the tantalizing and comforting mystery of the infinite by committing myself to write. It is better this way. I carry this - this perplexing barrier between what I think and what I say, between who I am and who I define myself to be, between what I think I carry and what I actually do.

Dante and Machiavelli

Dante and Machiavelli define opposite sides of the Renaissance in several ways. Certainly the former believes that God will reveal all and call people to account for their behavior, while the latter gives every sign of believing in no God and supposing that scrupulous behavior only makes one a target for ruthless exploitation. This difference in the two could be expressed in terms of religious faith—but they could also be said to have differing views of human nature. Try to get to the heart of the distinction. Why is Machiavelli’s sense of right and wrong so opposed to Dante’s? Written two hundred years apart, The Inferno by Dante and The Prince by Machiavelli both contain examples of society during the late middle ages and also the beginning of the Renaissance. While not contemporaries, both men held similar cynical views towards human nature, but opposing views on social structure. Dante believed that those with power were all destined to become corrupt while Machiavelli wrote that authority is necessary in order to maintain structure within the population. The Inferno, written as the first of three movements of The Divine Comedy, tells of one man’s journey into Hell with the help of Roman poet Virgil. As the two men journey through the nine circles of hell, Dante, or the Pilgrim, sees the souls of men and women and either feels pity or hatred, but most of all feels a sense of vengeance. In Dante’s hell, the punishment fits the crime. The lustful are forced to walk naked beside those of the opposite sex, the slothful are forced to reside at the bottom of the river Styx, and the soothsayers are forced to perpetually look back by having their necks twisted around. The Inferno is essentially a social commentary, exposing society’s true evils. In the eighth circle, simple fraud, were the simonists; those priests, popes, and bishops who, instead of revealing the glory of God, used their power to gain monetary wealth and fame. Their punishment is being buried head first, the soles of their feet on fire. The Pilgrim sees Pope Nicholas III who asks him if he is Boniface, â€Å"Is that you here already upright? † By including these popes in hell, Dante made clear his views on the leadership of the church and believed that the church had no control or right to control secular and civil matters. Dante also shows which sins he sees as the worst of sins, putting betrayers in the lowest circle of hell. Dante mploys some common sense while discussing hell, putting obvious sinners in the lower circles and prone to harsher punishments, but he also puts the not-so obvious sinners in hell. Even though one may think he is doing the right thing, all motives are evaluated upon judgment and even a trace of selfishness or greed may threaten one’s chance in heaven. This is why Dante’s hell is rife with politicians and leaders. Although they may have the community’s best interests at heart, politicians become obsessed with fame and glory, often forgetting that they are representatives of the people. In The Prince, Machiavelli explains what a good and successful prince should be like. He advocates a strong, cutthroat authority figure and encourages the winning of power by any means necessary. The main theme in The Prince is that mob rule is dangerous, for people know only what is good for themselves and not what is good for the whole. The common people, in Machiavelli’s view, â€Å"are ungrateful, fickle, liars, and deceivers, they shun danger and are greedy for profit; while you treat them well, they are yours†. He believes that these commoners should be ruled absolutely, yet compassionately, in order to suppress any challenge to ruling power. The only founded political dissent should come from the nobles and even then, all should be done so as not to fester thoughts of revolution. While it seems as though Machiavelli was a power-hungry despot, The Prince was merely a reaction to what he saw as a necessary evil. Machiavelli was actually a strong supporter of the republic in which the people, the very people he describes as being uneducated and self-centered in his book, ruled over themselves. In The Prince, he does give the common people credit, saying that, if a prince upsets them, they can take severe and dangerous action. â€Å"[The] best fortress that exists is to avoid being hated by the people† (XX, 70). Machiavelli understood that no matter how much power a prince may have, he is always at the risk of losing it whether it be at the hands of the people or the hands of another prince. Also, because he was first a supporter of republic, he understood the need for certain â€Å"checks† to be put in place to safeguard against revolution and lack of popular support. Machiavelli argues that, unless a prince’s subjects hate him, they will love him and follow him through any trouble that may beset the principality. In general, Machiavelli believes that a leader should be a true leader and rally the people behind his cause, even if that means killing off dissenters for the good of the whole. Although, upon first reading, The Prince seems to tell the tale of dictatorship and totalitarianism, it is much closer to modern democracy than some would like to believe and still is applicable to modern governments. Representing two different ages and two (supposedly) different world views, The Inferno and The Prince are quite similar in that both see humanity as somewhat of an evil and ungrateful status. They differ, however, by their view of what should be done about the human condition. Dante believed that what is done in this life will be punished accordingly in the next life, and there is little to be done, for even the unbelievers are subject to God’s will by being trapped in limbo. Machiavelli, on the other hand, didn’t believe in the afterlife and so thought that life should be lived here on earth and sin will be forgiven at death. This way, men can be free to strive for and obtain that which makes them happy, for the pious are buried just like the unbelievers. Ironically, The Prince is more optimistic than The Inferno, for Machiavelli stresses that, despite actions done on earth, all will be forgotten, for sin dies with the body.

What is meant by unemployment and what are its different types? Essay

Unemployment cannot be simply defined as the number of people without jobs. Such a definition would include children who are too young to work, pensioners and housewives and others who choose not to take up paid up employment. Since these groups pose no serious economic problems. Unemployment in a country refers to all those people who are willing to work, but are unable to find a job. Moreover unemployment is a very complex phenomenon. It is rather easy to notice but difficult to define. Broadly, unemployment may mean lack of employment. Thus, anybody who fails to work may be considered as being unoccupied and therefore unemployed for the concerned period. Ordinarily, the term unemployment denotes a condition of joblessness. In the early 1980’s worldwide unemployment rose to very high levels, higher than during some of the year 1930s although not as high as the peak unemployment rates of that earlier ‘Great Depression’ whereby the overall level of unemployment as well as the structure of unemployment was extremely varied. (References Wikipedia.com) The measurement of unemployment is very important for any economy. Unemployment is one of the most serious economic problems and it is important for the government to know the level and the rate so that it can take appropriate corrective measures. Formula for calculating rate of unemployment: Unemployment Rate = Total number unemployed x 100 Labour Force Labour Force = Number of people employed + Number of people unemployed Unemployment rate in Mauritius The graph above shows the historical trend of unemployment. In year 2004 unemployment rate was high 10.8% then it decreased from 2005. As from 2008 to 2011 we can observe that the unemployment rate was stabilized at around 7%. Which shows good reforms campaign by the government despite the economic crisis which affected Mauritius in 2008. Types of Unemployment: There is a lot of confusion and disagreement regarding the meaning and nature of unemployment. So, to comprehend the problem in a proper way and suggest remedies, we may discuss the various types of unemployment. Unemployment thus may be discussed broadly under several heads: Seasonal unemployment Frictional unemployment Structural unemployment Cyclical unemployment Technological unemployment Disguised unemployment Seasonal Unemployment: According to Beveridge, â€Å"Seasonal unemployment means the unemployment arising in particular industries through seasonal variations in their activity brought about by climatic changes.† Seasonal unemployment occurs due to lack of productive work during certain periods of the year. Certain industries or occupations are seasonal in character.Take the case of ice-cream production, which has a peak demand during the summer. In the winter season, with a fall in the demand for ice-cream, the demand for labour engaged in its production also falls, and seasonal unemployment takes place.A sugar mill may be closed for a number of months in a year, as the supply of sugarcane stops. Seasonal unemployment may also be witnessed in the case of traditional and underdeveloped agriculture. For instance, in India, the cultivators tilling the unirrigated lands very often remain idle for 120 to 150 days in a year. Seasonal unemployment takes place mainly due to the lack of suitable alternative employment opportunities in the slack season. Such unemployment usually does not lead to serious distress, as the wages in seasonal occupations are comparatively higher, which provides for the period of unemployment. Solutions to Seasonal Unemployment Such unemployment can be reduced by encouraging people to take different jobs in the â€Å"off season†. Reduced unemployment benefits and improving the flow of information may also be beneficial. 2. Frictional Unemployment The term frictional unemployment refers to the unemployment that is associated with the normal turnover of labour. People leave jobs for many reasons and they take time to find new jobs; old persons leave the labour force and young person enter it, for example, school leavers but often new workers do not fill the jobs vacated by those who leave. Inevitably all of this movement takes time and give rise to a pool of persons who are frictionally unemployed while in the course of finding new jobs. This unemployment would occur even if the occupational, industrial and regional structure of unemployment were unchanging. When the welfare payments are more attractive than the work itself, some of the unemployed believe that the tax and the benefit system will reduce significantly the net increase in income from taking paid work and choose to be on the welfare instead. Causes of frictional unemployment: The relationship between workers and employers tends to be heterogeneous in some or the other way. This mismatch can lead to frictional unemployment, which makes it closely related to structural unemployment. Fresh graduates looking for a good job, but are not able to get it right away because of certain demands by the employers in terms of skills and experience, therefore resulting in frictional unemployment. Factors related to preference, work environment, skills, remuneration, location, work timings, etc., always rise a sense of dissatisfaction in the workers or employers. This is one of the main causes of frictional unemployment. Solutions to frictional unemployment The government can make the information about the labour market more readily available. Schools can provide more guidance about the jobs in the market and invite professionals to speak about their jobs so as to provide more information to the school leavers. The government can create some part time jobs as a solution to the unemployment. Proper educational advice to college students in terms of the job demands and skills required to get job faster. (Reference tutor2u.com) 3. Structural Unemployment Structural unemployment takes place because of a change or defect in the economic structure of a country. It occurs as a result of changes in demand and supply conditions for certain categories of labour. According to Beveridge, structural unemployment means â€Å"the unemployment arising in particular industries or localities through a change of demand so’ great that it may be regarded as affecting the main economic structure of a country.† There are some distinct similarities between frictional and structural unemployment, as both arise due to maladjustment between the demand for and supply of labour. However, there are certain important differences between the two. Frictional unemployment is of a shorter duration and takes place because of temporary factors. Hence although the demand for labour may decline in certain industries this fall in demand is counterbalanced by a rise in demand in some other industries. In case of structural unemployment, the deficiency in demand for labour is more permanent, extensive and deep rooted. The barriers to mobility are rather more formidable. According to Thomas D. Simpson structural unemployment is more heavily concentrated among certain employment and demographic groups. It affects a significant number of workers in certain occupations, industries, racial, and age groups, whereas frictional unemployment tends to occur more widely. Secondly, structural unemployment is less voluntary than frictional unemployment. Solutions to Structural Unemployment: The government can retrain the workers to meet the demand for a new set of skills. For example, farmers should learn the new techniques of production using automation rather than rely only on the traditional method of farming. Workers should improve their skills and reduce occupational immobility. Policies should provide the unemployed with skills they need in order to be re-deployed. In this era of information technology, workers should have IT knowledge to remain employed. Education and training opportunities should be made available to the workers so that they can get trained and improve their chances of taking on new jobs that are available in the economy. 4 Cyclical/ Keynesians unemployment/ deficient-demand unemployment Cyclical unemployment happens to be the most common type of unemployment in an industrially developed capitalist economy. According to the classical economists, in the long run there would be a full employment equilibrium. But in reality we find that a capitalist economy is characterised by alternate periods of prosperity and depression, rising economic activity and employment and sluggish business conditions and falling employment opportunities. Cyclical unemployment is also popularly known as Keynesian unemployment, following Keynes. Keynes has culled this type of unemployment as involuntary unemployment. Lerner has termed this unemployment during an economic depression as deflationary unemployment. Moreover, cyclical unemployment is when workers lose their jobs during downturns in the business cycle. It generally happens when the economy contracts, as measured by Gross Domestic Product (GDP). If the economy contracts for two quarters or more, then the economy is in a recession. Cyclical unemployment is usually the cause of high unemployment, when rates quickly grow to 8% or even 10% of the labor force. It’s known as cyclical because, when the economy re-enters the expansion phase of the business cycle, the unemployed will get rehired. Cyclical unemployment is temporary — although it could last anywhere from 18 months (the typical time frame of a recession) to ten years (during a depression). (Reference, Wikipedia) Cyclical unemployment through a diagram As we can see in the AD/AS diagram, the fall in AD to AD1 will result in a fall in the Real output (Y1).This will force the firms to reduce their output and hence reduce their workforce from ADL to ADL1. However, due to ‘wage stickiness’ it is less likely that real wages will fall (as seen in the labour diagram). Therefore, the wages instead of coming down to W1 will remain at We. This will create a surplus situation where the aggregate demand for labour will be at ‘a’ and the aggregate supply of labour will be ‘b’. (reference tutor4u.com) 5. Technological Unemployment. Technological unemployment takes place because of rapid technological improvements. Introduction of improved machinery and labour saving know-how has a tendency to displace labour force. Myrdal cites the example of technological unemployment in the American agricultural sector in the fifties, when due to the introduction of labour-saving techniques, the agricultural workers as part of the total civilian labour force declined from 12’6 to 8’5 per cent. Introduction of improved technology in production will lower the capital-output ratio and the labour-output ratio. This will increase the productivity of capital and labour, causing technological unemployment. Probably due to this reason, even now introduction of electronic computers has always been viewed with suspicion by the workers. 6. Disguised Unemployment. As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. !t is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all â€Å"appear to be working.† As Nurkse has remarked, â€Å"In an overpopulated peasant economy, we cannot point to any person and say he is unemployed in disguise. The people may all be occupied and no one may consider himself idle.† The concept of disguised unemployment was originally conceived by Mrs. Joan Robinson. Her concept of disguised unemployment is more applicable to the advanced developed countries. According to her, â€Å"a decline in demand for the product of the general run of industries leads to a diversification of labour from occupations in which productivity is higher, to others where it is lower. The cause of this diversion, a decline in effective demand, is exactly the same as the cause of unemployment in the ordinary sense and it is natural to describe the adoption occupations by dismissed workers as disguised unemployment.† Conclusion Unemployment is something which is of great concern to individuals as well as the economy. It is surely something to worry about as it wastes economic resources and causes human suffering such as poverty, famine, depression and so on. Also experiences of unemployment are becoming much longer in duration and are increasing significantly. Hence alleviation of unemployment is a prime aim of the government in order to boost the economy. How could you measure unemployment and discuss the problem associated with each measure? Most people understand intuitively that being unemployed means not having a job. That said, it’s important to understand more precisely how unemployment is measured in order to properly interpret and make sense of the numbers. Basically there are two types of method to measure unemployment: I. Claimant count method II. The Labour Force Survey Claimant Count Method This method calculates unemployment by measuring the number of people receiving benefits (Job Seekers allowance). If the rate is up, it indicates a lack of expansion within the labor market, while it indicates economic expansion and could spark inflationary pressures if the rate is down. Generally, a decrease of the figure is seen as positive, while an increase is seen as negative. Source: www.fxwords.com Graph 2 shows: claimant count of United Kingdom An example of a claimant count chart can be illustrated above where we can analyses a decreasing trend during the years of people claiming for unemployment benefits thus indicating beneficial economic conditions, ceteris paribus. The Labour Force Survey A labour force survey is an inquiry directed to households designed to obtain information on the labour market and related issues by means of personal interviews. The information collected on the labour market can then be used to develop, manage, evaluate and report on labour market policies. According to the Mauritius Labour Force, Employment and Unemployment survey the following result were obtained: Second quarter 2012 1. Employment of Mauritians is estimated at 548,300 at the second quarter of 2012 compared to 535,500 at the first quarter of 2012 and 531,400 at the second quarter of 2011. 2. The unemployment rate is estimated at 8.2% for the second quarter of 2012 compared to 8.0% at both the first quarter of 2012 and the second quarter of 2011. 3. The main characteristics of the unemployed at the second quarter of 2012 were: (i) The 48,900 unemployed comprised 20,100 males (41%) and 28,800 females (59%). (ii) Around 22,300 (46%) of them were aged below 25 years. (iii) About 55% of the unemployed were single. Among males, the majority (80%) was single while among females, the majority (61%) was ever married. (iv) Some 7,800 or 16% had not reached the Certificate of Primary Education (CPE) level or equivalent and a further 21,900 (45%) did not have the Cambridge School Certificate (SC) or equivalent. (v) 11,300 (23%) had been looking for work for more than one year. (vi) 18,900 (39%) were looking for a job for the first time. Thus these result could be use to devise policies by the government for example whether to invest more or not, in order to combat unemployment and other economic turmoil. Reference: gov.mu Problem associated with claimant count: The criteria to be eligible for benefits often changes, usually this has been to reduce the claimant count. This makes it difficult to compare over time. The claimant count excludes: People over pension age, who will typically claim pensions rather than Job Seekers allowance People under 18, (with a few exceptions) People in full time education, who may still be classed as unemployed. People not eligible for contribution based JSA. To claim the contributions based JSA they need to have paid at least two years of NI contributions. Also, their level of savings or their partner’s income may be too high to be eligible. Any one on a government training schemes Married women looking to return to work Those looking for part time work and not full time work Some people may claim benefits whilst still working in the â€Å"black market† i.e. claim JSA fraudulently. Some people may be able to work upto 16 hours a week and still legally claim JSA (JSA- Job Seekers allowance) Problem associated with Labour force survey It could be subject to sampling errors and may not be truly representative. The sample chosen may be from just few regions of the country, instead of the whole population/every region. This will generate bias result thus it will be wrongly interpreted leading to inefficient policies to combat unemployment. It is time consuming and costly, basically conducting this survey may take months or years depending on the size of the economy and the number of population. In the same vein a lot of paper work is needed for this survey, more officers must be hired to conduct private interview. Hence there is no perfect method to measure unemployment accurately, as all measures have theirs pros and cons. For example claimant count consider various criteria to be eligible for the allowance whereas Labour Force Survey may not be representative. The method to measure unemployment also depend on the type of economy Discuss the effect of unemployment on an economy? Unemployment is universally recognized as a bad thing. It brings a lot of adverse effect to an economy. The consequences are as follows: 1. The consequences to the individual Increase health risk Unemployment increases susceptibility to malnutrition, illness, mental stress, and loss of self-esteem, leading to depression. Not everyone suffers equally from unemployment, highly conscientious people suffers more than twice. For example fresh graduates or people holding a degree but is unable to find a job are the most affected. Basically the table below shows the unemployment rate of people having a tertiary education in Mauritius. The Unemployment with tertiary education (% of total unemployment) in Mauritius was last reported at 7.90 in 2010, according to a World Bank report published in 2012. Graph 3 show: Unemployment with tertiary education (% of total unemployment) in Mauritius Source: indexmundi.com /cso Loss of income Unemployment normally results in a loss of income. The majority of the unemployed experience a decline in their living standards and are worse off out of work. This leads to a decline in spending power and the rise of falling into debt problems. The unemployed for example may find it difficult to keep up with their mortgage repayments. 2. The Consequences to the business Less overall spending When people are unemployed in large numbers, it hurts the rest of the economy, creating a cyclical problem. When people have less money to spend because of unemployment, other companies suffer from less consumer demand. Then, when companies suffer because of lost business, they might in turn be forced to make layoffs of their own, making the unemployment rate rise and overall spending drop even more. The cyclical effect of unemployment is the reason for government-issued economic stimulus packages to help businesses in difficulty. Logic suggests that when people have more money, they spend it, thereby stimulating the economy and simulating job growth. Social problems Business may be impacted by social problems associated with high unemployment (e.g. rising crime). If the market of a business is situated in a place where the crime rate is high and where there is high unemployment rate, it can have adverse effect on the business. Demand may fall due to the negative image of the areas, potential consumers may prefer to purchase their goods and services at a more secure place for personal security thus if demand fall, the firm’s revenue will decrease which can lead to bankruptcy consequently more people will be unemployment. Inferior goods Demand for inferior goods (lower price, quality) may increase, the demand for luxury goods will decrease. Thus business engage in production of inferior good will gain and those in luxury good will lose. Graph 1: demand for luxury goods under unemployment Graph 2: demand for inferior goods under unemployment As shown above, in graph 1 the demand of luxury goods has decrease from D to D1 due to unemployment, lack of potential buyers. Quantity supply has decreased from Q to Q1 leading to a decrease in price from P to P1. Area P,T,Z,P1 is the loss incurred by the firm operating under luxury goods production. On the contrary graph 2 shows the increase in demand for inferior goods from D to D1 due to unemployment. People will prefer to buy cheap goods due to lack of income. Quantity supply has increase from S to S1 causing price to rise in the long run from P to P1. Area P1,T,Z,P is the profit incurred by the firm operating under inferior goods production due to a rise in demand. 3. The Consequences for the government Fiscal costs High unemployment has an impact on government expenditure, taxation. An increase in unemployment results in higher benefit payments and lower tax revenues. When individuals are unemployed, not only do they receive benefits but also pay no income tax. As they are spending less they contribute less to the government in indirect taxes, the government will have to scale back plans for public spending on public and merit goods. Government Borrowing Spending along with the fall in tax revenues due to unemployment may result in a higher government borrowing requirement (known as a public sector net cash requirement). The Central government debt; total (current LCU) in Mauritius was last reported at 113289300000 in 2010, according to a World Bank report published in 2012. Graph 4 shows: The government of Mauritius debts 4. The Consequences for the economy as a whole Lost output of goods and services Unemployment causes a waste of scarce economic resources and reduces the long run growth potential of the economy. An economy with high unemployment is producing within its production possibility frontier. The hours that the unemployed do not work can never be recovered. Negative multiplier effects The closure of a local factory with the loss of hundreds of jobs can have a large negative multiplier effect on both the local and regional economy. One person’s spending is another’s income so to lose well-paid jobs can lead to a drop in demand for local services, downward pressure on house prices and ‘second-round employment effects’ for businesses supplying the factor or plant that closed down. Hence unemployment affects many aspects in an economy such as social, individual, economical and so on. Unemployment affects the economy in ways that most people do not visually see. Some effects are avoidable and some are inevitable. Evaluate the impact of the different policy measures adopted by the government of Mauritius in order to control unemployment? A range of government policies are available for the Government of Mauritius wanting to reduce the scale of unemployment in the economy. The Government can do many things to try and influence the level of employment. However some policies the government use can conflict with other policies for example if they were to spend more on education and training (so increasing the skills of workers) they would have to spend less on other things such as health-care. Basically the situation of unemployment in Mauritius is alarming, here is a chart to illustrate the seriousness of the issue: ChChGraph 5 : shows the Mauritius unemployed persons Unemployed Persons in Mauritius increased to 44000 Persons in February of 2012 from 43800 Persons in November of 2011, according to a report released by the Central Statistics Office, Mauritius. Historically, from 2004 until 2012, Mauritius Unemployed Persons averaged 45757.6 Persons reaching an all time high of 56100.0 Persons in May of 2005 and a record low of 35000.0 Persons in November of 2008. Source:indexmundi.com Fiscal measure: The ‘Additional Stimulus Package’ was presented in December 2008 to support enterprises on a short-term basis. The package introduced a ‘Mechanism for Transitional Support to the Private Sector’, which was eventually replaced by ‘the Economic Restructuring and Competitiveness Programme’ in 2010’ under the â€Å"Facing the Euro Zone Crisis & Restructuring for Long Term Resilience’ Memorandum presented in August 2010. This programme also included SURE (Support Unit for Re-Employment of Employees), and plans for restructuring the tourism industry, and for supporting the sugar industry. In 2012, Rs 7.3 Billion has been committed to a National Resilience Fund to help businesses better face the economic downturn. Thus this would secure current employees job and would create new jobs. During the financial crisis in the 2008, The government of Mauritius injected Rs6 billion in the economy for education, training, food security and This massive investment has been possible due to the fruit of past reforms in terms of fiscal benefits. In addition to these policy options, the Mauritian government introduced an Additional Stimulus Package in December 2008. In effect, Rs4 billion was earmarked to save employment. Much effort was made to sustain, modernise and ease the access to finance of local enterprises to help them improve their productivity and competitiveness. In year 2011, 5000 new Small & Medium Enterprises were created and were awarded grants by the government compared to 7,600 in Reunion Island in the same year. Thus creating jobs. The government proposed a tax rebate on all earnings for new entrepreneurs in the first two years, certain taxes have been suspended over two years, in tourism, construction and other sectors. Consequently, there will be a boost in their revenue and it may encourage the creation of new jobs. Source: Le Matinal(newspaper) Supply side policies (reduce frictional and structural unemployment) To educate is to empower. The government proposed more funds allocated to SMEs so that they can provide required training to their employees. The National Resiliency Fund was created last year by the Minister of Finance to encourage ‘the youth employment. The government in his last budget proposed that all secondary schools have a qualified career advisor and propose that all schools promote extra-curricular activities such as the ‘Young Enterprise Awards’. There should also be qualified staff in each state school, to help channel underperforming students in their right vocation. The Minister of Finance promised Rs 500,000 to schools around the island. The more skillful you are the more secure you are to get a job. Reflating Aggregate Demand The government succeeded in attracting foreign direct investment in Mauritius as it rose by 19.8 percent in the first six months of 2012 to 4.077 billion Mauritius rupees ($133.89 million) from 3.401 billion a year ago, according to the central bank thus contributing in enhancing the real national output consequently increasing the demand for labour. Foreign direct investment has risen causing aggregate demand to shift from AD1 to AD2 consequently the demand for labour to shift from LD1 to LD2 causing an obvious decrease in unemployment. Basically in assessing the effectiveness of these measures we just have to compare the working population to previous years: Graph 6 shows: Employed persons in Mauritius Economic policies till 2008 to 2012 had a positive impact on the labour market as there has been a rise in labour force which shows the effectiveness of these policies adopted by the government of Mauritius. Hence unemployment do not have an exact definition, it do not have a measure to calculate it exactly, its effects are vast and there are various measures to combat it. Unemployment is inevitable in an economy. The economy must see unemployment as a challenge, opportunity and tackle the issue with intelligence, not as a major economic turmoil, or be afraid of.