Government is in a unique position to bring enough resources to bear on a social problem when needed, and to “insure” across the entire society against disasters and personal need. Disaster relief is appropriately the concern of government, rushing resources into areas hit by tornadoes, hurricanes, and earthquakes. There is still an immediate and limited role for private philanthropy through organizations such as the American Red Cross, but the fundamental role of relief and reconstruction is best handled by governments. Government, put bluntly, is in a position to coerce all of us to take advantage of this “insurance”, contributing our fair share to insure ourselves and to provide for the needs of the poor and those affected by disasters. Economists and game theorists have proven time and again that we would all under-invest in public goods such as these if we were not forced to do so by taxation. One can fault government for poor planning and for “wasting money”, but private philanthropy can never substitute for the mechanism of society-wide social programs funded and administered by government.
Globalization has various aspects which affect the world in several different ways such as:
1. Industrial (alias trans-nationalization)—emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies.
2. Financial—emergence of worldwide financial markets and better access to external financing for corporate, national and sub-national borrowers.
3. Economic—realization of a global common market, based on the freedom of exchange of goods and capital.
4. Political—political globalization is the creation of a world government which regulates the relationships among nations and guarantees the rights arising from social and economic globalization.
5. Informational—increase in informationflows between geographically remote locations.
6. Ecological—the advent of global environmental challenges that can not be solved without international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species. Many factories are built in developing countries where they can pollute freely.
7. Social—the achievement of free circulation by people of all nations.
8. Transportation—fewer and fewer European cars on European roads each year (the same can also be said about American cars on American roads) and the death of distance through the incorporation of technology to decrease travel time.
9. Cultural—growth of cross-cultural contacts; advent of new categories of consciousness and identities such as Globalism—which embodies cultural diffusion, the desire to consume and enjoy foreign products and ideas, adopt new technology and practices, and participate in a “world culture”.
10. Technical/Legal—development of a global telecommunications infrastructure and greater transborder data flow, using such technologies as the Internet, communication satellites, submarine fiber optic cable, and wireless telephones.
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