Debt Sustainability and Fiscal Policy Rescuing the Rescuers

Debt Sustainability and Fiscal Policy Rescuing the Rescuers Introduction The financial crisis experienced in the period between 2007 and 2008 was a great shock and strain to most of the economies. This financial crisis occurred as a result of the various economies possessing a lot of fictitious wealth such as the wealth gained from excessive borrowing from international bodies so as to try and bridge the gap between excessive spending by governments and firms, which result to very high budgets, and the available financial resources for the governments and the firms.Advertising We will write a custom essay sample on Debt Sustainability and Fiscal Policy: Rescuing the Rescuers specifically for you for only $16.05 $11/page Learn More The great difference between the available financial resources and the high budgets resulted to a large deficit of finances for fitting into the budget, forcing the governments and firms to lump into a state of excessive borrowing, a factor that has left most of them, especially the large c ountries, in great debts (Reinhart Rogoff 2008). The global economy, especially the economy of the UK, was seemingly very stable before the year 2007 as all the financial undertakings of different economies seemingly thrived fairly. This was not really the case since the UK always got into a state where its budget was higher than the available financial resources and there was always a deficit in the amount required in the budget. Since there were a lot of national and international financial institutions willing to help the government out of the crisis it was facing due to the deficits, the government always found itself borrowing for the sake of bridging the gap brought in by the deficits. This continued for a long time and each time, the government made its budget in a manner that gave provision for inclusion of borrowed money for meeting its budget. This forced the government into a state of great debts and inflated budgets as its budget included repayments of the borrowed mone y and its interest rates. This further resulted to a state of increased deficits in the budgets resulting to more borrowing. In the long-run, the nation found itself so enormously tied up in debts in a manner it could not help itself out. In the same way, the government seemed to have a lot of wealth within its possession but when compared to its debt burdens, it actually had very little to be counted as government wealth. This situation continued and reached its climax at the period between 2007 and 2008 (Wolfe 2010). Towards the end of 2008, the state had experienced a lot of financial crisis as a result of the high debt burdens and this had recessive effects on the economy. There was increased budget expenditure yet very few financial resources for the governments, a state that forced the governments into more borrowing and hence a presence of fictitious wealth in their economies since much of the wealth was equivalent to the debt burdens the governments were in.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This way, the government experienced a gradual effect of the financial crisis since they ended up borrowing too much and not being able to repay the debts resulting into recession which got to its climax towards the end of 2008 when the financial position of most of the economies was the lowest. The recession had very adverse effects on the economies and the societies at large as it resulted to increased prices of goods and services, low unemployment rates as well as high interest rates (Porter 1990). With the financial crisis being experienced then, there was a greater threat of a possible depression occurring in the global economy, an event that could have been disastrous for all the involved economies and for the global economy at large. There was a need for the governments to take action and reverse the effects of the financial crisis hence avoi ding an instance of a depression occurring. In this way, the governments joined hand and got well coordinated in taking action against that event. With proper coordination, the involved governments were able to overcome the effects of the financial crisis and to save the world from a possible disaster that could have had very severe effects on every economy and even every business in the affected areas and in the world at large (Wennekers Thurik 1999). Governments are the problem of a possible new crises Sovereign debt crisis is the constraint experienced by many different countries and organizations that are tied up in heavy debts borrowed for the sake of bridging the gap between the available financial resources for meeting the budget and the actual high amount required to meet the requirements of the budget. In efforts to try and maintain progress for their countries, governments have found themselves so ties up in great debts that further inflated the amount required in the bud gets due to increased interest rates that have to be budgeted for and which end up placing the countries in a vicious cycle of being in debts. Increased debt burden usually forces the governments to be in a state in which it cannot be able to pay the debts and has to rely on international policies to help it out of the debts. This is one of the main problems that have resulted to various instances of financial crisis in most of the countries and even globally in most of the economies (Alesina Ardagna 2008). Recent studies have shown those economic crises encountered in most countries are a result of different reasons ranging from beliefs, culture and social influences. This influences result to negative financial crisis. People are also made to believe that credit or debt is inevitable for any financial growth, so people get a lot of loans which accumulate over the years. These debts have to be paid regardless of the duration of time they will take before they are cleared (Kelly A mburgey 1991).Advertising We will write a custom essay sample on Debt Sustainability and Fiscal Policy: Rescuing the Rescuers specifically for you for only $16.05 $11/page Learn More International economic crisis study shows that currencies may even crash or bring about banking crisis and inflation. This affects the prices of goods, trade, exchange rates of currencies, interest rates on goods purchased on credit or on loans And local debt. Investors have now almost relied on credits from foreign currency instead of relying on local or domestic borrowing. This can leads to increased interests on borrowers (Davidsson 1995). War is also another major cause of economic crisis. This is because it causes economic, social instability of a country. People in these regions cannot be able to do business or trade because of insecurity .transport and communication breakdown can also be encountered in war hit regions or countries which can affect the economy of any stat e (Herbert Link 1982). Countries that are reliant on trade, tourism, can be easily be hit by a crisis when external or internal war is experienced in the country .examples of this is during the second world war when countries were badly hit by crisis (Webster 1994). Global financial crisis also show that it has weakened the banking sector in a big way, especially in third world countries .though, still in developed countries, debt is a much bigger problem. The rate or the percentage of GDP is relatively low on developing countries than on developed countries. This reduces the risks on developing countries (Alesina and Ardagna 2008). The Need to Reduce Deficits and Debts and the Issue of Debt Sustainability The government inter-temporal budget constraint is the constraint experienced by a government due to the presence of debts within its economic setup resulting from currently borrower financial support used to meet the deficits within its budget and the debts inherited from past g overnments, especially in form of repayment of the debts. This and the fact that the government always has a lot of spending to do causes that government to always seek for more financial aid so as to meet its requirements and its budget further plunging it into a state of more debts (Alesina Ardagna 2008). Deficit in the budget is the amount of finances that is less that the required amount so as to meet the full budget. It is the difference between the available financial resources, which usually are never enough, and the actual amount required so as to meet the full budget for the government.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More There are different types of deficits, primary deficit, structural deficit and cyclical deficit. Primary deficit is the difference that occurs between the current expenses and the total current revenue from all types of taxes for the government. On the other side, structural deficit are the deficits that remain across the business trade process (Coviello Jones 2004). The only way the country can resolve this problem is by improving the institutional set up. This process may require time and effort but can be solved. If possible, the country should also reduce the amounts of debts from foreign debtors (Sproul 1995). Borrowing can also be made safer by avoiding excessive borrowing. This is a major way that can reduce the risks of debt crisis. Having strategies and concrete plans before borrowing can help to reduce over borrowing which leads to mismanagement of funds and unnecessary budgets. Finances should always be used for projects that will generate income or returns which can be able to pay the interests and make profits making this borrowing reasonable if it can be able to pay the loan (Alvarez and Busenitz 2001). If the country is borrowing from abroad or from international bodies, it should consider whether the projects that they want to fund have higher social return than the interest of the fund. Also, it should consider whether the project will be able to generate the amount of foreign currency able to service the debt considering the time deadline or scheduled contract time. The country can reduce the risks of debt crisis by ensuring regular monitoring of account surpluses. Proper money regulation and balancing or budgets can be of great help in reducing debt crisis in any developing country. A country may opt to cut off international or domestic debt market (Burda Wyplosz 1997). It is the government’s obligation to curb debts and deficit in order to avoid economic crisis in the country. This can also help in stabilizing the economy of a coun try and avoiding risks of excessive borrowing (Covin Slevin 1989). Due to various factors facing the country such as unbalanced demographic characteristics resulting to high unemployment and overdependence on the employed, low incomes, low GDP and high expenditure for individuals and the government, the government has continuously experienced a deficit in its budgets since its revenues are always way below their expenditures and their plans for the fulfillment of their goals and objectives for a financial year in their countries (Verheul et al. 2002). More important to note is that the government has a lot of financial challenges facing it such as high poverty indices and low development and hence is always trying to improve the financial positions of its citizens and the nation and to encourage the course of achievement of development and in this way, it always end up with a greater need to spend more than its revenue and all their financial resources can cover (Murphy Hill 1996) . This way, it ends up with a budget that is way too high compared to its financial capabilities and hence it always end up depending on borrowing from international bodies such as the World Bank, the IMF and the developed countries so as to try bridge the gap between its needs and its capabilities (Porter 1990). The only problem with the over-dependence that has been noted in countries on financial borrowing is that it lenders the borrowers into a continuous state of being in debts as they always owe their lenders more than they can be able to pay at any one given time (Reinhart and Rogoff 2008). Due to this problem of being in a continuous state of debts, there is a need for the government to address the issue of debts and formulate strategies that will ensure that the current debts are reduced as well as establishing ways of reducing the deficits present in the budgets. The reduction of deficits can be achieved through increasing the sources of revenue, reducing expenditure throu gh prioritization and even seeking for other sources of funding such as the private sectors within the nation instead of seeking for external aid which is costly (Wolfe 2010). The reduction of the deficits in the budgets will help reduce the rate of borrowing and in return help curb the instances of debts for the country as well as the problem of debt sustainability (Smallbone Welter 2001). Appropriateness of a Sharp Structural Fiscal Tightening Many governments in the developed and developing countries have been experiencing a great financial crisis due to the overall effects of the global financial crisis and various other global factors. The most affected countries are the developing countries which have been plunged into alarming instances of overwhelming debts that have very serious effects on their financial positions currently and in the future (Saunders 1994). All the countries, on the other side, have been faced with a situation in which they are unable to implement their policies and face a great public outcry as a result (Webster 1994). In these hard situations, many the governments has been left with no choice rather than establishing strategies to try and curb the instances of the financial crisis in the country. This way, the government has formulated and implemented sharp structural fiscal tightening strategies aimed at bringing the economy to a stable position. However, depending on the way these strategies are implemented, they have been found to either have very helpful effects or to result to more problems by encouraging double-dip recession (Madhok 1997). In the instances of proper timing and properly formulating the policies that allow the implementation of the fiscal tightening strategies, the governments have been able to overcome the instances of recession and lift their financial positions and stabilize them (Porter 1990). On the other side, some of the methods used for implementation of the strategies just result to worsening of the situation due to wrong timing and improper implementation of the strategies, a factor that results to further recession in the economy (Wolfe 2010). References Alesina, A. Ardagna, S., 2008. Large changes in fiscal policy. (Online) Available at: www.nber.org . Alvarez, S. Busenitz, L., 2001. The Entrepreneurship of Resource-Based Theory. Journal of Management, 27 (6), pp. 755-775. Burda, M. Wyplosz, C., 1997. Macroeconomics: A European Text. New York: Oxford. Coviello, E. Jones, V., 2004. Methodological issues in international entrepreneurship research. Journal of Business Venturing, 19 (4), pp. 485-508. Covin, J. Slevin, P., 1989. Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10 (1), pp. 75-87. Davidsson, P., 1995. Culture, structure and regional levels of entrepreneurship. Entrepreneurship and Regional Development, 7 (1), pp. 41-62. Herbert, R. Link, N., 1982. The Entrepreneur. New York: Preager. Kelly, D. Amburgey, T. , 1991. Organizational inertia and momentum, a dynamic model of strategic change. Academy of Management Journal, 14 (5), pp. 591- 612. Madhok, A., 1997. Cost, value and foreign make entry: The Transaction and the firms’ Strategic Management Journal. New York: Willey. Murphy, G. Hill, C., 1996. Measuring performance in entrepreneurship research. Journal of Business Research, 36 (1), pp. 15-23. Porter, M., 1990. The Competitive Advantage of Nations. New York: Free Press. Reinhart, D. Rogoff, S., 2008. This time is Different. (Online) Web. Saunders, J., 1994. The Marketing Initiative. London: Prentice-Hall. Smallbone, D. Welter, F., 2001. The Distinctiveness of Entrepreneurship in Transition Economies. Small Business Economics, 16 (4), pp. 249-62. Sproul, N., 1995. Handbook of Research Methods: A Guide for Practitioners and Students in Social Sciences. 2nd ed. Methuen: Scarecrow. Verheul, I., Wennekers, S., Audretsh, D. Thurik, R., 2002. An Eclectic theory of entrepreneurshi p: Policies, institutions and culture. In: David Audretsch, Roy Thurik, Ingrid Verheul and Sander Wennekers 1997. Entrepreneurship: Determinants and Policy in a European–US Comparison. Boston: Kluwer Academic Publishers. Webster, L., 1994. Lending for microenterprises: A review of the World Bank’s portfolio. Washington, D.C.: FPD Note 23, World Bank. Wennekers, A.R.M. Thurik, A.R., 1999. Linking entrepreneurship and economic growth. Small Business Economics, 13 (1), pp. 27-55. Wolfe, M., 2010. Emergency Budget: Special edition. (Online) Available at:Â  https://www.ft.com/ . Wolfe, M., 2010. Osborne bets tough Fiscal Stance will not stifle growth. (Online) Available at:Â  https://www.ft.com/ .

Religious Social Education Coursework Christianity Essay Example

Religious Social Education Coursework Christianity Essay Example Religious Social Education Coursework Christianity Essay Religious Social Education Coursework Christianity Essay I visited Socketts Heath Baptist Church in Grays; it was originally Clarence Road Baptist Church in 1893. Then in 1933, the church was moved to its present location on Premier Avenue.The main parts of the interior of a church are:Pews: the pews in the church are used to seat the Christians who attend Church. Near the back of main assembly hall are some chairs just in case extra seating space is required. Before the 15th Century the sick and the old were the only people allowed to sit down on the Pews, whilst all the other people would have had to stand. In the 17th century pews were boxed in, and furnished with padded seats and hat pegs. The church I am studying has pews.The Cross-: Directly above the Communion Table is a cross. The symbol of a cross is symbolic of the cross that Jesus was nailed to.The Communion Table: The communion table is a major article within the church. Bread, wine and the Bible are the main objects, which are placed on the communion table. The communion table is placed at the front of the church so the entire congress can see it. The vicar also performs services there. However, at certain times of the year such as Christmas, the people walk down the aisle to the Alter where they receive the bread and wine from the Vicar. A table is used because in Luke chapter 22 verse 14 it states, when the time came, Jesus took His place at the table.Communion is often called The Breaking Of The Bread or The Lords Supper. The reason it is known as either these two because Jesus performed these actions before he died.In Luke chapter 22 verses 17-20 describe how Jesus first gave communion with his disciples, Then Jesus took some bread, gave thanks, broke it and gave it to the apostles saying This is my body, which I am giving for you do this to remember me. In the same way, after supper, Jesus took the cup and said, This cup is the new agreement that God makes with his people. This new agreement begins with my blood, which is poured out for youPulpit: B eginning in about the 9th century two desks called ambos were provided in Christian churches one for reading from the Gospels and the other for reading from the letters. The former, which became increasingly ornate, was the forerunner of the Pulpit. By the 13th century what could be called modern pulpits were being installed in Italian churches. The alter is traditionally at the east end of the Church. Often it is erected against a pillar and sometimes upon a short, freestanding base or slender column. Usually hexagonal or octagonal in form, it is serving as a decorative sounding board. English pulpits often gave two or three stories, with the lowest for a clerk, the middle one for a reading desk, and the third for the preaching of the sermon. There are also external, outdoor pulpits that are entered from within the church.Baptistery Pool: A Baptistery pool is only found inside Baptist churches only. It is believed that baptism was the door to the church. People are only baptised w hen they feel that they are ready to commit themselves to Christ. This is can be at any age, but sometimes the parents of a child will have their children baptised when they are young, the problem with this is that the child does not understand what is happening to them. At Grays Baptist Tabernacle there is a large baptistery pool, which is hidden. The Baptist pool is at the front of congregation so everyone can see the person being baptised. Jesus told his disciples in Matthew chapter 28 verse 19 So go and make followers of all the people in the world. Baptise them in the name of the Father and the Son and the Holy Spirit.Lectern: The Lectern is a reading desk to hold the Bible open. It is normally made out of wood or brass. Occasionally the Lectern is shaped like an eagle because this is a reminder to the people of Isaiah chapter 40 verse 31 in the Old Testament who said that those who hope in the Lord will soar like an eagle. In high-church services the priest gives the gospel re ading in each service from the middle of the congregation but the other readings are given from the Lectern. At Grays Baptist Tabernacle the Lectern is found at the front of the congregation in front of the Communion table.The Bible: The Bible is a collection of Holy Scriptures, which members of that faith accept as authoritative. The Bible is often referred to as the Canon of scriptures. At Grays Baptist Tabernacle the Bible is always left open on the lectern.Stain Glass Windows: Stain glass windows are often found in historical and modern churches. Stained glass windows originally told Biblical stories; nowadays they are mainly pictures of Jesus, May, Saints and any other important Christian figures.Section BAll these features in the church help with worship in one form or another. I need to find out how they assist belief to do that I will write about every item listed in section A, plus I will ask 3 people to answer a questionnaire that I have created.The Cross-: The cross is th e main symbol for Christianity. A cross, in some shape or form, is likely to be found in a vast majority of church. The crucifix is a cross, which carries the figure of a dying Jesus. This symbolises the sufferings of Jesus by which Christians believe they are forgiven. Towards the end of Holy Week, the crucifixes is empty to indicate the Christian belief that Jesus is no longer on the cross but risen from the dead. In the church, the cross is used for people to concentrate on the death of Jesus. At Grays Baptist Tabernacle the cross is empty all year round to show that Jesus is alive.Communion Table: The communion table is where the bread and wine are placed for Communion. The table is laid to remind the church of the Last Supper as Jesus commanded his disciples. In some Christian churches, Holy Communion, or the Eucharist is the most important act of worship in which they take part. Holy Communion means Holy Sharing and refers to the service in which Christians share bread and win e with each other, and with God. As they do so they also share spiritually in the death of Jesus on the cross. Matthew chapter 26 verses 26-28 these words form the basis of Holy Communion today.Chalice: The Chalice is used during communion. After the priest blesses it, he hands them the chalice containing the wine. He says, The blood of Christ. The person replies each time Amen. The bread and wine are no more than just symbols and they remain so throughout the service unlike the High Church or the Catholic point of view.Baptistery Pool: The baptistery pool is used for adult and infant baptism. Parents who bring their child for a baptism believe that this ceremony marks the spiritual rebirth of their child as others renounce evil and repent on its behalf. Adult baptisms are mainly the same as child baptisms except the person chooses that he/she agree to the ways and the beliefs of Christ.Lectern: the lectern gives a special and respectful place for the Bible in the church, which eve ry member is familiar with. The lectern is used during the readings of passages from the Bible. It is shaped so that the Bible will not drop when reading; it is likely to cause a distraction during the service if the Bible is dropped. The Bible can be opened at the appropriate page and left on the lectern before the meeting so there is no time loss in finding the verses.The Bible: The Bible is the Holy Scripture, which is written to help the congregation understand the word of God. The Bible is very valuable to Christians, since it carries instructions given by the Lord. The Bible contains Gods authority on all aspects of belief and behaviour. In 2 Timothy chapter 3 verses 16-17 say All Scripture is inspired by God and is useful for teachings the truth, rebuking error, correcting faults, and giving instructions for right living so that the person who serves God may be fully qualified and equipped to do every kind of good deed.Most church denominations believe that it is important to use quotes from the Bible when speaking to the people. Passages from the Bible are read in almost all Christian services as well as being used in sermons. Lay-people as well as the clergy can give these. During some services and sermons the priest takes one of the Bible passages which has been read earlier in the service and explains both its meaning and its teaching for Christian life today.Members of the congregation usually read the readings from the Old Testament. The reading from the Gospels, however, is usually read by the vicar to show its importance. The reason why the Gospels are treated differently is that they contain the only record of the birth, life, teaching, death and resurrection of Jesus. They are the foundation of the Christian faith. It is thought the other readings do not carry the authority or the importance, which is, attached to readings from the Gospel.Conclusion: In section B, I have tried to show how all the furnishings and fittings are used in Church lif e and how they relate to different Church festivals e.g. Christmas and Easter.Section 3In this part of my project I am going to be discussing whether I think that for a Christian, worship at home more important than worship at church?In todays world, when someone is speaking about church, most people think of it as a building. However church is not just a building but it is the congregation as well.In the New Testament, Acts 2 verse 41-47 it talks about the group of believers that became the new church. This shows that the most important part of the church is the people. In Greek Church means a gathering of people. Therefore, it does not really matter there you are or when you worship God. Some people believe that it is possible to worship God within your own home, in just the same way as you would in a Church, but the Bible says it is important to meet together. In the Old testament God told his people to remember the Sabbath and keep it Holy. In the New Testament, the church was t old not to give up the habit of meeting together. However, Paul says in 1 Corinthians 11 verse 17 that the meetings for worship actually do more harm than good. This is because some were being greedy and getting drunk.For a Christian, worship includes singing, prayer, preaching and Holy Communion. When you are taking communion, the priest or vicar blesses the bread and the wine and then gives it for you to consume. If you are worshiping at home you cannot do this but this does not stop you thinking about the Lord and Jesus. In spite of this some Christians do not believe you have to have a special person to bless the bread and the wine and therefore, they will take it at home with others.Additionally in a church you have more furnishings and features to help assist you worshipping God. For example, you might have an organ or other instruments to aid you whilst you are singing. I believe that it helps and encourages the congregation when there are a lot of people singing. It is also a good place for new songs to be easily introduced and so it keeps people interestedWhen people are worshipping in churches they are sometimes filled with the Holy Spirit or this is also known as the baptism of the Spirit. One of the gifts is to speak in a language known as tongues. Another is the power to heal the sick.Some people may prefer to worship in the comfort of their own home. This might be because they feel more comfortable. Today, most people have a television and so they can watch religious programmes designed to help them worship. If they were at Church they might also be embarrassed about singing and worshipping in front of everyone, but if they were at home alone they probably would not get so embarrassed. But in Psalm 149 it says sing to the Lord a new song, his praise in the assembly of the saints. Which says that you should praise God with other people and in Psalm 150 it says Praise God in his sanctuary which also means praise God in church.In a church, you usual ly get someone who preaches and tries to teach you about Christian life. At home, there is not a preacher and so you do not learn about as much about God and Christian way of loge as you do when you go to church. However, you could get books and tapes from the local Christian bookshop or over the Internet that would help you study the Bible.In conclusion, I think that you can worship in your own home but worshipping in a Church is more effective because you are around other Christians and you can talk to them about subjects, which help you worship God. I believe it is better to worship in church because you can talk about how you feel; an example of this is when someone feels upset and unhappy. They might have suffered a death in the family, enjoyed and perhaps receive prayer or help.