Why Green Technology is Necessary - Assignment Example

summary of 2 articals (micro ecnomics Obama stresses Americans in the beginning of this year that countries like Spain, Germany and Japan heaved in new industries than them, not because of their smartness or hard working but because of the restrains that puts by their government on their hard working and skillfulness with the help of venture investments. This is a fact that countries like China, Canada, Indonesia and France to uphold their withering economy invested a lot to cultivate greenery. This green stimulus act as a cure for the world’s recessing economy, besides increasing the economic growth and less reliance on the imported fuels it causes emancipation from the global warming. According to a precise estimation the money world spending on the environmental technology is 1.3 trillion dollars a year, and still increasing rapidly. There are approximately 10 times more jobs in green energy than the other sectors, and it is stressed on the U.S government by the U.S Environment Programme that government has to commend schemes assists green employment. In a recent paper from the Peterson Institute of International economics and the World Resources, American think tank shows that if U.S government spends 1 billion dollars in green technology, it creates 30,100 jobs per year, while for road construction there are 25,200 jobs per year and for tax cuts there are 7,000 jobs per year. Authors can perform a very positive role in this green stimulus schemes with the help of their reading materials that act as catalyst for the readers like, make investment in things like wind mill and fuel efficient cars would demands less investment as compared to the profit and besides this you also save the environment for your new generation and fulfill your social responsibility as well. According to the European Commission, the financial assistances for renewable electricity plants that Obama’s government has promised to pay for 25 years would cost them to 37.7 billion dollars , these plants created 50,200 jobs, means that there is 741000 dollars per job. Whereas private sector of Spain computed that for one green job created by the government it destroys 2.2 ordinary jobs with it, they exclaimed that instead of investing 338000 dollars on one green job, if government gives the 37.7 billion dollars to the private sector then they can create 113,000 jobs with this money. But the main issue has skipped here that, why green technology is necessary? Because in addition to jobs, it brings other benefits as well like reducing demand for fossil fuels, and above all it emits reduced amount of green house gases and save the environment. Eventually result is that it is need of time to fight global warning and also to create new jobs, but through inexpensive way. Actually in this article author wants to describe that the ‘green technology’ or ‘renewable energy’ is the need of time, not because of this reason that it provides job vacancies for the people. But because of its environment friendly nature that it does not emits dangerous and hazardous gases; it has no other type of adverse affects to the environment. Secondly it has not much requirement of fossil fuels, while fossil fuels are on the earth in a limited quantity. They can be finished to some day, whereas by burning them we also disturb the ecological balance. In article it is stressed that this is also the responsibility of the writers that they should have to write material on topics like ‘green technology’ and ‘green jobs’ so that it would help to mobilize the people against conventional sources of energy that cause unrecoverable disaster to our earth. It also catalyze the investors so that they invest in the renewable energy sources that along with giving them benefits, also give benefits to the environment. Author depicted that in the countries, where they are making real investments in the renewable energy has benefited heavily from their courageous investments. Intellectual tides of past thirty years ha no doubt been on the side of the supremacy of the markets and never wants that they come under the laws, but in the end of 2008 government is obliged to interrupt in the business of finance and markets. After the war of Vietnam and trade shortcomings, Richard Nixon try to solve the crisis by deferring the dollar’s convertibility, because capital could not flow openly from one to another country. But if currencies can float then companies may have expenses in one country and return in other currencies, it is seen that financial futures would far greater than merchandize market. Free markets bring economic gain, but as an outcome capital control was not remained necessary. In 1896 the Big Bang revoked the differences betwixt stockbrokers and wholesalers, any company that has more assets and wealth can take away the market. The annulment of the old Glass-Steagall treaty segregated the Investment and commercial banking of American. Business of corporate lending demands rivalry whereas retail banking necessitated the extensive and costly branch networks, therefore now commercial banks have chance to leave behind the muscle investment banks. With the thriving of financial industry American stock market raised from 5.2 percent (1980) to 23.5 percent (2007). Development in the risk management was premium for exercising options and swap, while credit-default swap for the risk that possibly borrower will not reimburse, still grows up rapidly. Portfolio insurance was denounced for the biggest restitution in the growth of derivatives market following the stock market crash of 1987. One of the pompous causes of crisis is securitization, that means to entangle the loans into wrapping and sold to outside investors, and the first big investor was for American mortgages. Now another time this business was supported by the higher authorities, which results in the serenity of asset backed turn into more complicated shape. No more the commercial banks are contingent on the slow business of retail prices, but essentially the securitization unseal a new path for banks, they can now take on loan in the markets. When all this takes place regulators were not absolutely apathetic but had to direct with crises, whereas some governments devise again their regulatory policies as Britain in 1997 devise the FSA to make a single managerial body. Banks due to improper match betwixt their properties and debts acts as a frail link in the financial system. In actual bank has to follow the social policy means that there must be more loans to the poor people, with time eventually the Americans who had their own home grows stably, but with the increasing number of buyers the loans again becomes financially unmanageable for the poor. These countries having big financial centers without fear of inflation enjoyed the tax revenues they relinquished. In this article author basically gives an account of the banks and markets, that from past 30 years the business intelligent never wants that markets come under the laws of government but eventually government has to made influence in this. Author told that first there are no free markets; capitals can not flow from one country to another, if can then world would be changed. Then author said that as the bank business become larger it becomes more and more complex, premiums and swaps were introduced. If you have to buy an asset then you have to pay a premium first, whereas borrowers on variable rates can exchange with those who are on fixed rate. Because of the technique of portfolio insurance there was a severe stock market crash that results in the draw back of growth of derivative markets. Author discusses mortgages and bankruptcies, in last he depicted the social policy of the banks that more and more loans are for the poor people, but there are so many people, more people means that the loans automatically becomes financially unmanageable for the poor. It can push country to inflation but the big countries enjoyed the revenues they earned from these loans. Read More