A Brief History of the Doomsday Clock

A Brief History of the Doomsday Clock In June 1947, almost two years after the destruction of Hiroshima and Nagasaki by atomic bombs, the first issue of the magazine Bulletin of the Atomic Scientists was printed, featuring a stylized clock on its cover. The clock displayed the time seven minutes to midnight, a symbolic representation of how close humanity was to destroying itself in a nuclear war, at least according to the judgment of the Bulletins editors. Since then, the Doomsday Clock has been an ever-present fixture on the world stage, set back when nations behave reasonably, set forward when international tensions wax, a constant reminder of how close we are to catastrophe. As you can probably infer from its title, the Bulletin of the Atomic Scientists was created by, well, atomic scientists: this magazine started as a mimeographed newsletter circulated among the scientists working on the Manhattan Project, an intensive, four-year effort that culminated in the bombs dropped on Hiroshima and Nagasaki. (The Bulletin is still published today, no longer in print form, since 2009, but on the web.) In the 70 years since its appearance, the mission of the Doomsday Clock has been slightly tweaked: it no longer refers specifically to the threat of nuclear war, but now signifies the likelihood of other doomsday scenarios as well, including climate change, global epidemics, and the unforeseen dangers posed by new technologies. The Ups and Downs of the Doomsday Clock One common misapprehension about the Doomsday Clock is that its updated in real time, like a stock-market ticker. In fact, the clock is only changed after meetings of the Bulletins advisory board, which happen twice a year (and even then, the decision is often  taken to keep the time as it is). In fact, the Doomsday Clock has only been set forward or back 22 times since 1947. Here are some of the most notable occasions when this has happened: 1949: Moved up to three minutes to midnight after the Soviet Union tests its first atomic bomb. 1953: Moved up to two minutes to midnight (the closest the Doomsday Clock has ever reached this mark) after the U.S. tests its first hydrogen bomb. 1963: Moved back to 12 minutes to midnight after the U.S. and the Soviet Union sign the Partial Test Ban Treaty. (One interesting side note: the Cuban Missile Crisis of 1962 started, and was resolved, in between meetings of the Bulletins advisory board. One imagines that if the clock had been reset during these seven tense days, it would have displayed a time of 30 or even 15 seconds to midnight.) 1984: Moved up to three minutes to midnight  as the Soviet Union is mired in war in Afghanistan and the U.S., under Ronald Reagan, deploys nuclear-tipped Pershing II missiles in western Europe. The international social fabric is further weakened by the U.S. boycott of the 1980 Olympic Games and the Soviet boycott of the 1984 Olympic Games. 1991: Moved back to 17 minutes to midnight (the farthest away the clocks minute hand has ever been) after the dissolution of the Soviet Union. 2007: Moved up to five minutes to midnight after North Korea tests its first atomic bomb; for the first time, the Bulletin also recognizes global warming (and the lack of firm action to counter it) as an imminent threat to civilization. 2017: Moved up to two  and one-half minutes to midnight (the closest the clock has been since 1953) following Donald Trumps tweets touting the U.S. nuclear arsenal  and the prospect of decreased legislative action to slow global warming. How Useful is the Doomsday Clock? As arresting an image as it is, its unclear just how much of an effect the Doomsday Clock has had on public opinion and international policy. Clearly, the clock had more of an impact in, say, 1953, when the prospect of a Soviet Union armed with hydrogen bombs conjured up images of World War III. Over the ensuing decades, though, one can argue that the Doomsday Clock has had more of a numbing than an inspiring effect: when the world is constantly a few minutes from global catastrophe, and the apocalypse never quite happens, most people will choose to ignore current events and focus on their daily lives. In the end, your faith in the Doomsday Clock will depend on your faith in the Bulletins high-powered advisory board and its network of professional experts. If you accept the evidence in favor of global warming and are alarmed by nuclear proliferation, youre likely to take the clock more seriously than those who dismiss these as relatively minor issues. But whatever your views, the Doomsday Clock at least serves as a reminder that  these problems need to be addressed, and hopefully soon.

Hamlet - Appearance Vs. Reality Essays - Characters In Hamlet

Hamlet - Appearance Vs. Reality Essays - Characters In Hamlet Hamlet - Appearance vs. Reality Hamlet one of Shakespeare's greatest plays, where the young prince of Denmark must uncover the truth about his fathers death. Hamlet a play that tells the story of a young prince who's father recently died. Hamlets uncle Claudius marries his mother the queen and takes the throne. As the play is told Hamlet finds out his father was murdered by the recently crowned king. The theme that remains conezt throughout the play is appearance versus reality. Things within the play appear to be true and honest but in reality are infested with evil. Many of the characters within the play hide behind a mask of falseness. Four of the main characters that hid behind this mask are Polonius, Rosencrantz (Guildenstern), the king Cluadius. From behind this mask they give the impression of a person who is sincere and genuine, in reality they are plagued with lies and evil. There appearance will make it very difficult for Hamlet to uncover the truth, the characters hide behind. Polonius the kings royal assiezt has a preoccupation with appearance. He always wants to keep up the appearance of loving and caring person. Polonius appears like a man who loves and cares about his son, Laertes. Polonius speaks to his son with advice that sounds sincere but in reality it is rehearsed, hollow and without feeling. Polonius gives his advice only to appear to be the loving caring father. The reality is he only speaks to appear sincere as a politician, to look good rather then actually be good: "And borrowing dulls the edge of husbandry. This above all: to thine own self be true, And it must follow, as the night the day, Thou canst not then be false to any man. Farewell; my blessing season this in thee!" Act 1 Polonius gives his son Laertes his blessing to go away, he sends a spy to follow him and keep an eye on him. This shows his lack of trust for anyone, he gives the appearance of a confident father who trusts his son to go off on his own. In reality he lies about his trust for his son by sending a spy to watch him. His advice he gives his son is rehearsed and only said to give the appearance of a loving father. Polonius further adds to the theme appearance verses reality by ordering Ophelia to stop seeing Hamlet. He lies to her telling her that Hamlet does not love her, he only lusts for her, in truth he does love her: Ay, springes to catch woodcocks. I do know, When the blood burns , how prodigal the soul Through the play Polonius hids behind his mask appearing to be honest loving parent. In reality Polonius lies, manipulates people and eavesdrops on peoples conversation. Polonius helps contribute to the theme appearance verses reality by showing how his appearance is not his true nature, behind the mask there lies someone totally different. Rosencrantz and Guildenstern are two of Hamlets childhood friends who when asked by the king, try to find out what is troubling the young prince. Both help to contribute to the theme by showing there appearance of being Hamlets friends. The pair go to Hamlet pretending to be his friends when in truth they are only there because the king asked them to find the truth. There is some irony within the twins, they are asked by the king to find out the truth by hiding within a lie, by pretending to be his friend: A dream is but a shadow Act II. Hamlet knows there purpose for their visit is to dig into his soul to find the real reason for his actions as of late. As the play continues the twins are asked again by the king to go to Hamlet and try again to find the real reason for Hamlets behavior. Hamlet insults them at every chance knowing they are lying to him about there purpose of the visit: Tis as easy as lying; govern these ventages with you finger and thumb, give it breath with your mouth...Act III As the melodrama continues Hamlet goes with the twins to reclaim money that another state owes Denmark.

BUSINESS MODEL INTERROGATION & DEVELOPMENT Essay - 1

BUSINESS MODEL INTERROGATION & DEVELOPMENT - Essay Example Therefore it is extremely important for managers to develop a sound business model as failing to do so would severely disrupt business operations (Hedman and Kalling, 2003). It is with regards to this fact that the researcher will be attempting to evaluate the business model of Toyota Motor Corporation (TMC). Emphasis will be given the manner in which the managers in this company have integrated and developed the business model. The researcher will explain the company’s performance and strategies in the dimensions of product and capital market. Besides that focus will be laid on the organization’s product portfolio. This will allow the researcher to comment on the advantages and drawbacks of the business model implemented by Toyota Motor Corporation and what extent the internal organizational structure contributed to the business model. In that way the researcher will be able to make recommendations regarding any changes that need to be brought within the business model and the organizational structure. TMC is a Multinational Corporation based in Japan which is mainly engaged in manufacturing and distribution of automobiles. The organization operates in three business segments which are automobile production, house design and financial services (Toyota, 2015a). Toyota is presently the market leader in the automobile industry. The company has achieved this stature by selling cars, minivans and trucks as a part of its business in the automobile segment (Thomson Reuters, 2015). Toyota’s business model is based on two fundamental strong frameworks: Kaizen and the lean production system (also referred to as the Toyota Production system). Kaizen means incessant improvements that are to be bought in the quality of products. The managers of Toyota believe in working their way towards innovation in order to develop processes that are aimed towards continuous product development and improvement. Kaizen is an integrated strategy which

Transcending Neoliberalism Essay Example | Topics and Well Written Essays - 250 words

Transcending Neoliberalism - Essay Example Popular and state mandated huge wage increase resulted to inflation compounded by unchecked inflation in the 1980s. These economic policies also resulted in huge foreign debts amounting to three fourths of its national output. It worsened when the state forced the peso to be equal to the dollar. The country bottomed out and defaulted on its debt in 2001 causing its President Adolfo Rodriguez to resign. Various economic policies were then adopted to resuscitate the economy from debt restructuring to expansionary monetary and fiscal policies to checking inflation. To check inflation government held back exports. In 2012, Argentina restricted its import and adopted a tighten foreign currency control. Brazil’s economic policy on the other hand adopted an inward-oriented economy that boosted its global competitiveness. It adopted policies of sustainability and economic liberalization that further boosted its national competitiveness. It maintained a controlled inflationary rate, adopted a floating exchange rate and disciplined fiscal spending that further boosted its economy. Hall, Patrick and Hall, John. Argentina’s Economic Policy: Failing to Learn from History. Web. April 21, 2014

Science and technology Essay Example | Topics and Well Written Essays - 1250 words

Science and technology - Essay Example However, even through the years of all the research, the AI project remains a failure (Kassan 1). Despite of this, Hawkins is certain that humans are capable of producing artificial intelligence (qtd. in Kassan 1). Honda, a Japanese mobile company, proved that Hawkins’s statement is rather accurate by creating ASIMO (Advanced Step in Innovative Mobility). The robot is said to be the most human-like creation Honda has ever made. By 2005, ASIMO is â€Å"better, stronger, and faster.† ASIMO â€Å"can do things like turn on light switches, open doors, carry objects, and push carts† (Orbinger and Strickland). Robots pretty much do the things that humans cannot do or simply do not want to do. This is a good deal for people who are too busy to do the chores at home or for someone who does not want additional burden when he comes from work. Yet, the question still remains: â€Å"Do we really need robots to do all these things?† In a brighter perspective, robots ca n do things more efficiently, â€Å"and without the continuous cost and social upheaval† (â€Å"Ethical Issues†). Is this not an insult to the capacity of humans to these jobs? It seems like the term â€Å"more efficiently† degrades the value of human work. Robotics, though a proof of humans’ intelligence, should not be taken as â€Å"slave machines† and made them do all the humans are capable of doing because first, it will affect human resources and job displacements, it would alter the natural, and it would forcibly pass through human limitation and eventually leading to the realization of the concept of â€Å"Singularity.† Necessity is the mother of invention; the seed of all production, or is it? The concept of necessity seems to have changed through the course of dynamic technological revolution. In the different kinds of industry, cutting the production costs without risking quality

Relationship between Inflation Rates and Employment

Relationship between Inflation Rates and Employment CHAPTER 1 Gross Domestic Product as an indicator of wealth and therefore quality of life has long been criticized (Mederly, P. and et al. 2003). Gross Domestic Product (GDP) is the value of total production of goods and services in a country over a specified period, typically a year. The gross domestic product (GDP) or gross domestic income (GDI) is a measure of a countrys overall economic output GDP can be determined in three ways, all of which should in principle give the same result. The most direct of the three is the product approach, which sums the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the principle that all of the product must be bought by somebody, therefore the value of the total product must be equal to peoples total expenditures in buying things. The income approach works on the principle that the incomes of the productive factor must be equal to the value of their product, and determines GDP by finding the sum of all producer s incomes (Bureau of Economic Analysis, U.S Department of Commerce, 2007). The most common approach to measure GDP is the expenditure method: GDP= private consumption + gross investment + government spending + (exports à ¢Ã‹â€ imports) GDP = C + I + G + (X-M) (Equation 1.1) An event in 1975 that remind us the current GDP in our country where the Malaysian economy slumped into its great recession, with a GDP growth rate of only 0.8 percent, compared to 8.3 percent in 1974. This is one of the effects of increase in oil prices and then substantial price increase in 1973 were bought about mainly shortage of food and raw materials arising from bad weather and increased aggregate demand (Cheng, M.Y. and Tan,.H.B. 2002). According to the above circumstances occurred in 1975, the researcher has choosing one of variables that may relate with fluctuation of GDP which is inflation rate. Inflation means either an increase in the money supply or an increase in price levels. Generally, when we hear about inflation, we are hearing about a rise in prices compared to some benchmark. The study of the effects of inflation on economic growth continues to be an important and complex topic in economics. If inflation has real economic effects, then governments can influence economic performance through monetary policy (Risso, W.A and Carrera, E.J.S, 2009). Therefore, investigating how inflation affects economic growth pertains directly to the optimal design of monetary policy. Results from such studies are particularly important for economies. Besides the inflation, the researcher has considered total employment as one of the variable in the model since economic growth and employment are correlated between each others. The relationship between unemployment and GDP is called Okuns law. It is the association of a higher national economic output with the decrease in national unemployment. This is because in order to increase the economic output of a country, people will need to go back to work, thus lowering unemployment. In order to support the relationship exist between GDP and employment, the researcher has found out the issue supporting the theory that GDP and employment has a positive relationship between each others. According to Hassan, M.K.H. and et al. (2010), in the period of 1996 -1997, the manufacturing sector experienced a rapid growth producing the employment rate in the sector to grow at 7.7 percent per annum but later declining to negative 3.6 percent in 1998 due to the economic recession. In addition, in year 2000, the Malaysian manufacturing sector contributed 33.4% to gross domestic product (GDP), 85.2% to total export and 27.6% to total employment. 1.2 PROBLEM STATEMENT Inflation is a major source of economic instability because it weakens incentives for work and production, distorts the allocate efficiency of the market mechanism, erodes international competitiveness of the domestic industry, and reduces growth potential. According to study by Fischer and Modigliani (1980) suggested a negative and nonlinear relationship between the rate of inflation and economic growth through the new growth theory mechanism. Furthermore, inflation also damages economic growth by lowering domestic and foreign savings, reducing efficiency of resource allocation, and deteriorating the balance-of payments (Risso, W.A. and Carrera, E.J.S., 2009). According to Cheng, M.Y. and Tan, H.B. (2002), the economy has experienced episode of high (1973-1974, 1980-1981) and low (1985-1987) regimes of inflation, and was able to contain low and stable inflation during the high economy growth period of 1988-1996. The second problem statement that should be concerns since the employment can affect the economic growth and it is important variable to determine the quality of production for national output and next will influence the GDP of our country. For example, in the early 1990s, the unemployment rate increased for about a year following the end of the previous recession. Coming out of a recession, companies are thought to be reluctant to hire many more workers until they are convinced about the sustainability of a new economic recovery while people who had left the labor force during the recession return to seek to find jobs (Seyfried, W.). Therefore, the researcher conducts this research in order to examine the correlation exists between inflation rate and employment with GDP so that we can help the country to mitigate the problem occurs by supporting the governments policies to increase the countrys GDP. In addition, this research also useful since the results of the studies can be used in policys decision for resource allocation in order to accelerate economic growth. 1.3 OBJECTIVES The objectives of the study are to: 1.3.1 Analyze the relationship between Inflation Rate and Gross Domestic Product in terms of magnitude and direction. 1.3.2 Analyze the relationship between Total Employment and Gross Domestic Product in terms of magnitude and direction. 1.4 SIGNIFICANCE OF THE STUDY The significances of this study are as follow: 1.4.1 Researcher This study will help the researcher to complete their course requirement and will be as guidelines for their field of work in the future. The researcher can gain many experiences in order to complete this research. There are lot of weaknesses may be obtained and this will encourage the researcher to provide the better research in the future. Future researcher will know and more understanding about gross domestic product when conduct this research. It will give the knowledge to the researcher to identify the correlation exist between inflation rate and employment and it always make the researcher briefing to know deeply and applied the study. 1.4.2 Organization This study might help the organization in analyzing the countrys economic condition in order to prevent and reduce the risk during the inflation and know the effects of the crisis occurs to them. This study also may give some guidance to them to protect their company and industry itself. 1.4.3 Public This study can inform and gives some knowledge to the public the relationship between economic growth, inflation rate and employment. They also can make preparation to face the increasing in inflation rate and able to survive in that situation. 1.5 SCOPE OF THE STUDY The researcher chooses to conduct the research about GDP in Malaysia from 2000 until 2010 In this study, the researcher wants to determine the correlation exist between inflation rate and employment with GDP in Malaysia. It is important because as economic planners and forecasters used the GDP per capita in monitoring economic growth trend for time series. The collection of data of GDP, inflation rate and total employment were collected from Department Of Statistics Malaysia in quarterly basis. 1.6 THEORETICAL FRAMEWORK Figure 1.1: Theoretical Framework INFLATION RATE GROSS DOMESTIC PRODUCT EMPLOYMENT RATE RATE Independent variables Dependent Variable Figure 1.1 represents the dependent variable and independent variables in this study. The function of theoretical framework has been clarified by Sekaran, U. (2003) which is a conceptual model of how one theorizes or makes logical sense of the relationship among the several factors that have been identified as important to the problem. Figure above clearly discuss the correlation between Gross Domestic Product which is variable primary to the researcher while Inflation Rate and Employment act as independent variable which is influences the dependent variable. 1.7 HYPOTHESIS In classical test of significant, two kind of hypothesis are used. They are Null Hypothesis and Alternate Hypothesis. Hypothesis is a conjectural statement that describes the relationship among variable even negative or positive. Null hypothesis which is represent by H0 symbol to show that the relationship between independent and dependent variable is not exist. However alternate hypothesis is representing by H1 symbol to show that the relationship is existing between both dependent and independent variable. According to Sakaran (2004), a hypothesis defines as a logically conjectured relationship between two or more variables expressed in the form of testable statement. Relationship a conjectured on the basis on the network of associations established in the theoretical framework formulated for the research study. There are two hypotheses that can describes the correlation exists between dependent variable and independent variables. Therefore the hypothesis that can be tested as follows: Inflation and GDP H0: there is no significant relationship between inflation and GDP. H1: there is a significant relationship between inflation and GDP. Employment and GDP H0: there is no significant relationship between employment and GDP. H1: there is a significant relationship between employment and GDP. 1.8 LIMITATION / CONSTRAINTS The limitations / constraints are: 1.8.1 Time constraint The length of time is limited since the researcher does not have much time to make detailed research. The time provided only three months and the researcher need to divide time properly to complete the research because the process of collecting data is quite difficult. 1.8.2 Cost constraint The cost involves is quite high since as a student, the researcher only depend on the loan applied. Examples of cost involve in order completing this research such as cost of printing, cost of maintaining the laptop, cost of surfing the internet and etc. 1.8.3 Data constraint Since the researcher use the secondary data, the collection of data that have been publish are so limited and the related material are not very supporting the topic of research. 1.8.4 Lack of experience The researcher is less of experience in conducting the research therefore needs to refer the researchers advisor to process the data and learning the skill that needed as a good researcher. CHAPTER 2 LITERATURE REVIEW 2.1 DEPENDENT VARIABLE 2.1.1 GROSS DOMESTIC PRODUCT (GDP) Generally, according to Chan, W.W. and Lam, J.C. (2000), gross domestic product is a common measure of the economic well-being of a society. When government officials plan for the future, they consider the various economics sectors contributed to the gross domestic products. In the other study by Ivanov, S. and Webster, C. (2007), they use the growth of real GDP per capita gr as a measure of economic growth in line with other publications in the field (see Ivanov and Webster, 2007; Lopes et al., 2002; Plosser, 1992). The function of GDP also has been explained by Kosmidou, K. (2008) where gross domestic product (GDP) is among the most commonly used macroeconomic indicators, as it is a measure of total economic activity within an economy. The gross domestic product growth (GDPGR), calculated as the annual change of the GDP, is used as a measure of the macroeconomic conditions. The significance between GDP, foreign trade and foreign direct investment has been discussed by Liu Ying and Cui Riming (2008) where the economy is highlighted by the significant performance of both its economic growth and its foreign trade and foreign direct investment. Under this background, the correlation of foreign trade, foreign direct investments and economic growth in has become an important issue for academic research. Previous studies support that foreign trade and foreign direct investment have positive impacts on gross domestic product (GDP). In the study by Malul, M. and et al. (2008), the GDPpc is used mainly to compare the standard of living in different countries. It means that the higher of cost of living in a country, the higher earning of gross domestic product of the country. According to Wong, K.Y.(2008),economic growth of an economy refers to the expansion of its production possibility set, as a result of accumulation of primary factors such as labor and capital (physical and human), or improvement of production technologies. However, because the production possibility frontier (PPF) of an economy is not observable, economic growth is usually measured in terms of the growth rate of some observable variables such as real GDP or real per capita GDP. Besides that GDP also one of the result of the countrys economic activities based on the statement of Daly and Cobb (1989), GDP expresses the content of physical flows of à ¢Ã¢â€š ¬Ã…“capital, industrial production, services, resources and agricultural productà ¢Ã¢â€š ¬?. The scientific research has been conducted by Ligon and Sadoulet (2007) using a sample of 42 countries show that GDP growth, which comes from agriculture is at least twice as effective in reducing poverty compared to GDP growth coming from nonagricultural areas. In order to know the correlation between inflation and growth, Gokal, V. and Hanif, S. (2004), stated that the tests revealed that a weak negative correlation exists between inflation and growth, while the change in output gap bears significant bearing. The causality between the two variables ran one-way from GDP growth to inflation. While, according to some consensus exists, suggesting that macroeconomic stability, specifically defined as low inflation, is positively related to economic growth. 2.2 INDEPENDENT VARIABLES 2.2.1 INFLATION RATE (INF) Inflation on economic growth continues to be an important and complex topic in economics. If inflation has real economic effects, then governments can influence economic performance through monetary policy. Therefore, investigating how inflation affects economic growth pertains directly to the optimal design of monetary policy. According to Andres and Hernando (1999), for example, reducing inflation by one percentage point when the rate is 20 percent which results in an increase in the growth rate of 0.5 percent, compared to reducing inflation by one percentage point when the inflation rate is around 5 percent, which results in a decrease in the growth rate by 1 percent. Furthermore, a study by Mallik and Chowdhury (2001), the structuralisms argue that inflation is necessary for economic growth, whereas the monetarists argue the opposite, that is, inflation is detrimental to economic growth such debate started in the 1950s, focused on developing countries, which had long suffered fro m low-growth rates with high rates of inflation and larger deficits in the balance of payments. In order of inflation, the monetarists argue that price stability promotes economic growth and protects the balance of payments. They argue that inflation is major sources of economic instability because it weakens incentives for work and production, distorts the allocative efficiency of the market mechanism, erodes international competitiveness of the domestic industry, and reduces growth potential. They also argued that inflation damages economic growth by lowering domestic and foreign savings, reducing efficiency of resource allocation, and deteriorating the balance-of-payments. To monetarists, stable prices are the starting point in the process of economic development. The policy choice of a country would be stabilization with growth, or stabilization without growth. Several papers are typical of the monetarist tradition. To argue that, according to Fischer and Modigliani (1980) suggested a negative and nonlinear relationship between the rate of inflation and economic growth through the new growth theory mechanism proposed a model where the agents decide the level of labor output, and an increase in inflation reduces labor supply, and producing a decrease in economic production. On the other hand, a study by Mundell and Tobin (1965), the structuralizes argue that inflation normally accompanies economic growth in developing countries because structural rigidities and bottlenecks in supply sectors prevent the elastic supply of some basic commodities such as food, housing, energy, and transportation. Increased income as a result of growth would expand demand for such basic commodities, and prices would rise. The structuralize position is that economic difficulties in developing countries have roots deeper than just the results of inflation. Thus, structuralizes thought that inflationary pressures and det erioration in the balance of payments inevitably are attendant matters of economic growth. In developing countries, there thus would be a trade-off relationship between economic growth and inflation and an attendant deterioration in balance of payments. If a developing country wants stabilization of prices and balance of payments, it must reduce the speed of economic growth, including a sacrifice of employment. Among scholars who support the structuralize position on a positive relationship between inflation and economic performance, predict a positive relationship between the rate of inflation and the rate of capital accumulation, which in turn implies a positive relationship to the rate of economic growth. But, DeGregorio (1996) and Fischer (1926) pointed out, since money and capital are substitutable, an increase in the rate of inflation increases capital accumulation by shifts in portfolios from money to capital and thereby stimulate a higher rate of economic growth was the first to establish a negative correlation between inflation and unemployment. According to Grier and Grier (2006), it presents evidence on the real effects of inflation and inflation uncertainty on output growth. Their main findings are as follows: Inflation uncertainty has a negative and significant effect on growth Once the effect of inflation uncertainty is accounted for, lagged inflation does not have a direct negative effect on output growth; and As predicted higher average inflation raises inflation uncertainty, and the overall net effect of average inflation on output growth. Differ with theory of Bortis, H. (2004), he argues that inflation is a macroeconomic phenomenon represented by a gap between global supply and global demand. Inflation affects the money-output relationship, as does deflation; both phenomena modify the purchasing power of money over domestic output. In this view, price indices cannot come to grips with the inflation phenomenon. While Cheng and Tan (2002) in their study inflation in Malaysia, suggested that main factors affecting Malaysian inflation were external (foreign trade, foreign direct investment and technology transfer). Malaysia has been comparatively successful in balancing strong economic growth with moderate levels of inflation in the periods preceding and following the Asian Financial crisis. Actually, empirical results related to low and medium inflation are of a mixed nature; some papers (mainly these analysing the developed economies) argues that moderate inflation negatively affects growth (e.g. Alexander, 1997, Gillm an et al. 2002; Gillman and Harris 2009; Gillman et al. 2001; Fischer 1993; De Gregorio 1992 and 1993) while other argues that moderate inflation is actually stimulating growth. On the theory side Friedman (1977) in his Nobel lecture argues that a positive relationship between the level of inflation and inflation uncertainty. Friedman points out higher inflation leading to greater uncertainty, which lowers welfare and efficiency of output growth. On the other hand, Ball (1992) formalizes Friedmans hypothesis using an asymmetric information game where public faces uncertainty regarding the type of policymaker in the office. One of the policymaker is willing to tolerate a recession to reduce inflation and the other is not. During the low inflation time, both type of policymakers will attempt and try to keep it low. But, when inflation is high, only the tough type or anti-inflation policymaker will bear the economic costs of disinflation. The argument that central banks should emphasize holding down inflation comes from the beliefs that inflation has an adverse effect on macroeconomic variables, such as output and productivity growth. According to Clark (1982), inflation causes misperception of the relative price levels and leads to inefficient investment plans and therefore affects productivity inversely. Furthermore, inflation erodes tax reductions for depreciation and raises the rental price of capital, which in turn causes a reduction in capital accumulation and therefore in labour productivity. In addition, according to Feldstein (1982) inflation disrupts investment plans by imposing a higher tax rate on corporate profits and through higher effective tax rates on corporate income and accordingly affects productivity (Gilson, 1984; Boskin et al., 1980). Finally, inflation distorts price signals and reduces the ability of economic agents to operate efficiently (Smyth, 1995). According to Chen and et al. (1991), it has documented a significant relationship between the US stock returns and real economic variables such as industrial production, real GNP, interest rates, inflation and money supply. Besides that, there are also otherwise arguments that there is no relation between inflation rate and gross domestic product in the long run. For instance, Faria and Carneiro (2001) investigate the relationship between inflation and output in the context of an economy facing persistent high inflation and they find that inflation does not affect real output in the long run, but that in the short-run inflation negatively affects output. In addition, scholars such as Sidrauski (1967) suggest that there is no relationship between inflation and economic growth, supporting the hypothesis of super neutrality of money. On the other hand, Sarel (1995) asserts that there is a nonlinear relationship between inflation and economic growth. Using 87 countries, he finds the existence of an inflation threshold of 8 percent. Above the threshold there is a negative relationship between inflation and economic growth, whereas under the threshold there is a positive but not significant relationship. The others studies in order to prove Sarels result, Judson and Orphanides (1996) divide Sarels sample of countries into three groups, and they find similar results to Sarel, finding a threshold of 10 percent. Ghosh and Phillips (1998a, b) study 145 countries in the period 1960-1990 again finding similar results. Paul et al. (1997) study 70 countries (of which 48 are developing economies) for the period 1960-1989. They find no causal relationship between inflation and economic growth in 40 percent of the countries, bidirectional causality among 20 percent of the countries, and unidirectional causality for the rest (either inflation to growth or vice versa). Lastly, Mendoza (1998) finds that inflation has had no effect on Mexicos long-run economic growth since he conducted the study of inflation in Mexico. 2.2.2 EMPLOYMENT Some of studies have been conducted to examine the relationship between gross domestic product and employment. For instance, according to Okun (1962) and Philips (1958), they found different relationship both of these. Okun found a negative correlation between unemployment and economic growth, then from both propositions it can be deduced a positive relationship between economic growth and inflation while Phillips proposed a positive relationship between inflation and unemployment implying the same type of relationship. In addition, Boltho and Glyn (1995) found elasticities of employment with respect to output growth in the order of 0.5 to 0.6 for a set of OECD countries. While according to Evangelista and Perani (1996) discovered evidence suggesting that restructuring of major economic sectors reduce the relationship between economic growth and employment. A specific research conducted by Seyfried, W., among the G7 countries (Canada was excluded), a positive and significant relationship between growth in value added and employment was found only in Germany and the US. In addition, according to Verdoon (1949) and Kaldor (1966), an increase in output growth of 1 percent leads to an increase in productivity and employment growth of half a percentage point each. It should be noted that the higher the productivity effects of growth, the more difficult it will be to keep unemployment from rising. According to Okuns Law an increase of the economic growth rate by 3 percent (above the normal rate) was expected to reduce the unemployment rate by 161 percentage point. Or, to put it the other way round: The gain of real GDP associated with a reduction in unemployment of one percentage point was estimated to be 3 percent. Several studies also have been conducted to examine the correlation exists between employment and inflation rate. One of the studies by Spithoven, A.H.G.M. (1995), by the end of the 1960s evidently there was no fixed relationship between unemployment and inflation. Empirical research revealed that the relationship was not consistent over time and varied sharply between countries. This was explained as follows: in the short run higher nominal wages attract more labour and engender a fall in the rates of unemployment. As soon as the workers recognize the wage rise to be purely nominal they abstain from work, and unemployment is restored to the pre-wage-rise level, but with a level of prices higher than before. Secondly, according to Brenner (1991), confronted with a combination of unemployment and inflation (stagflation), many governments abandoned efforts to regulate the economy by the Keynesian instruments. They declared fiscal policies ineffective and sought refuge in a mixture of m onetary measures with supply-side economics. According to Keynes (1946), the volume of employment is given by the point of intersection between the aggregate demand function and the aggregate supply function. This was naively interpreted and construed to imply that a rise in costs à ¢Ã¢â€š ¬Ã¢â‚¬Å" and with this was meant a rise in costs owing to increasing government expenditure à ¢Ã¢â€š ¬Ã¢â‚¬Å" will result in an upward shift of the supply curve and will cause greater unemployment and inflation. CHAPTER 3 RESEARCH METHODOLOGY AND DESIGN 3.1 MODEL SPECIFICATION This study is to examine the correlation exists between inflation rate and total employment with gross domestic product. It uses secondary data which is based on time series data. The collection of time series data from 1982 to 2006 and the scope is in Malaysia. The researcher applied STATA software to process the data and log-log model in this study. The model applied a log transformation, since log transformations help, at least partially, to eliminate the strong asymmetry in the distribution of inflation (Sarel, 1995) and (Ghosh and Phillips, 1998a, b). The logarithm equation is written in the Equation 3.1. GDP = ÃŽÂ ± + ÃŽÂ ²1In(INF) + ÃŽÂ ²2ln(EMP) + ÃŽÂ µ (Equation 3.1) Where, GDP = Gross Domestic Product ÃŽÂ ± = Constant ÃŽÂ ²1 = Inflation ÃŽÂ ²2 = Employment ÃŽÂ µ = Error term In above equation, it shows clearly dependent variable that has been applied in this study is gross domestic product, besides that, the researcher also used two independent variables which are quantitative variables, they are inflation rate and total employment. 3.1.1 DEPENDENT VARIABLE The dependent variable is the variable of primary interest to the researcher. The researchers goal is to understand and describe the dependent variable, and to explain its variability, or predict it (Sekaran, 2006). Dependent variable of this study is factor contributed to the gross domestic product. According to Zikmund (2000), independent variable is a criterion that predicted or explained. It show that the component contributed to improving of gross domestic product depend on the listed independent variables. 3.1.2 INDEPENDENT VARIABLES According to Zikmund (2000), independent variables that expected to influence the dependent variable. Refer to (Burn and Bush, 2000), independent variables are those variables over which the researcher has some control and wishes to manipulate. In this study, two independent variables will influence the dependent variables. They are inflation rate and employment. 3.2 DATA SET AND METHODOLOGY The collections of data in this research only gain from secondary data and based on time series data which are from 2000 to 2010. The researcher has considered annual data of real GDP, inflation rate and employment. All the data on the growth rate of real GDP, Inflation and total employment were obtained from Department of Statistics Malaysia database. GDP is considered per capita. In addition, according to Aigenger (2005) per capita real GDP is also used as an alternative measure of productivity, as some theoretical models do. Moreover, according to OECD (2001), living standards as represented by per capita income reflects productivity since the former is determined, to a significant extent, by the latter. CPI consider in weight 100 while employment in number of labor. The variables were selected based on relevant economic theories that allow for the interaction among inflation rate and total employment in addition to response to GDP. 3.3 TECHNIQUE ANALYSIS DATA In this research, the researcher has applied unit SPSS in order to determine time series data is stationary or non stationary about the correlation between inflation rate and employment with gross domestic product. The researcher examines the existence of a long-run relationship between inflation and employment with GDP using a vector error-correction model (VECM) after applying Johansens (1988, 1990, and 1995) cointegration technique. We conduct a test for weak exogeneity in order to do inference. Then, the researcher conduct stability test by using Jarque Bera test in order to test normality distribution between the variables selected. Finally, a modified version of the Granger causality test is applied in order to analyze causality between the variables. 3.4.1.1 Multiple Regression Analysis Multiple Linear regression analysis is an analysis of the relationship between one variable (dependent variable) and set of variable (independent variables). It is used by the researcher to test the hypothesis. As in all hypothesis tests, the goal is to reject the null hypothesis and accept the alternative hypothesis. This technique will identify how much of the variance in the dependent variables can be explained by independent variables. This analysis is used primarily for the purpose of prediction. The regression model can be used to predict the value of the proposed model in the study is: GDP = f (INF, EMP) GDP = ÃŽÂ ± + ÃŽÂ ²1 Inflation+ ÃŽÂ ²2 Employment + ÃŽÂ µ Where, GDP = Gross Domestic Pr Relationship between Inflation Rates and Employment Relationship between Inflation Rates and Employment CHAPTER 1 Gross Domestic Product as an indicator of wealth and therefore quality of life has long been criticized (Mederly, P. and et al. 2003). Gross Domestic Product (GDP) is the value of total production of goods and services in a country over a specified period, typically a year. The gross domestic product (GDP) or gross domestic income (GDI) is a measure of a countrys overall economic output GDP can be determined in three ways, all of which should in principle give the same result. The most direct of the three is the product approach, which sums the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the principle that all of the product must be bought by somebody, therefore the value of the total product must be equal to peoples total expenditures in buying things. The income approach works on the principle that the incomes of the productive factor must be equal to the value of their product, and determines GDP by finding the sum of all producer s incomes (Bureau of Economic Analysis, U.S Department of Commerce, 2007). The most common approach to measure GDP is the expenditure method: GDP= private consumption + gross investment + government spending + (exports à ¢Ã‹â€ imports) GDP = C + I + G + (X-M) (Equation 1.1) An event in 1975 that remind us the current GDP in our country where the Malaysian economy slumped into its great recession, with a GDP growth rate of only 0.8 percent, compared to 8.3 percent in 1974. This is one of the effects of increase in oil prices and then substantial price increase in 1973 were bought about mainly shortage of food and raw materials arising from bad weather and increased aggregate demand (Cheng, M.Y. and Tan,.H.B. 2002). According to the above circumstances occurred in 1975, the researcher has choosing one of variables that may relate with fluctuation of GDP which is inflation rate. Inflation means either an increase in the money supply or an increase in price levels. Generally, when we hear about inflation, we are hearing about a rise in prices compared to some benchmark. The study of the effects of inflation on economic growth continues to be an important and complex topic in economics. If inflation has real economic effects, then governments can influence economic performance through monetary policy (Risso, W.A and Carrera, E.J.S, 2009). Therefore, investigating how inflation affects economic growth pertains directly to the optimal design of monetary policy. Results from such studies are particularly important for economies. Besides the inflation, the researcher has considered total employment as one of the variable in the model since economic growth and employment are correlated between each others. The relationship between unemployment and GDP is called Okuns law. It is the association of a higher national economic output with the decrease in national unemployment. This is because in order to increase the economic output of a country, people will need to go back to work, thus lowering unemployment. In order to support the relationship exist between GDP and employment, the researcher has found out the issue supporting the theory that GDP and employment has a positive relationship between each others. According to Hassan, M.K.H. and et al. (2010), in the period of 1996 -1997, the manufacturing sector experienced a rapid growth producing the employment rate in the sector to grow at 7.7 percent per annum but later declining to negative 3.6 percent in 1998 due to the economic recession. In addition, in year 2000, the Malaysian manufacturing sector contributed 33.4% to gross domestic product (GDP), 85.2% to total export and 27.6% to total employment. 1.2 PROBLEM STATEMENT Inflation is a major source of economic instability because it weakens incentives for work and production, distorts the allocate efficiency of the market mechanism, erodes international competitiveness of the domestic industry, and reduces growth potential. According to study by Fischer and Modigliani (1980) suggested a negative and nonlinear relationship between the rate of inflation and economic growth through the new growth theory mechanism. Furthermore, inflation also damages economic growth by lowering domestic and foreign savings, reducing efficiency of resource allocation, and deteriorating the balance-of payments (Risso, W.A. and Carrera, E.J.S., 2009). According to Cheng, M.Y. and Tan, H.B. (2002), the economy has experienced episode of high (1973-1974, 1980-1981) and low (1985-1987) regimes of inflation, and was able to contain low and stable inflation during the high economy growth period of 1988-1996. The second problem statement that should be concerns since the employment can affect the economic growth and it is important variable to determine the quality of production for national output and next will influence the GDP of our country. For example, in the early 1990s, the unemployment rate increased for about a year following the end of the previous recession. Coming out of a recession, companies are thought to be reluctant to hire many more workers until they are convinced about the sustainability of a new economic recovery while people who had left the labor force during the recession return to seek to find jobs (Seyfried, W.). Therefore, the researcher conducts this research in order to examine the correlation exists between inflation rate and employment with GDP so that we can help the country to mitigate the problem occurs by supporting the governments policies to increase the countrys GDP. In addition, this research also useful since the results of the studies can be used in policys decision for resource allocation in order to accelerate economic growth. 1.3 OBJECTIVES The objectives of the study are to: 1.3.1 Analyze the relationship between Inflation Rate and Gross Domestic Product in terms of magnitude and direction. 1.3.2 Analyze the relationship between Total Employment and Gross Domestic Product in terms of magnitude and direction. 1.4 SIGNIFICANCE OF THE STUDY The significances of this study are as follow: 1.4.1 Researcher This study will help the researcher to complete their course requirement and will be as guidelines for their field of work in the future. The researcher can gain many experiences in order to complete this research. There are lot of weaknesses may be obtained and this will encourage the researcher to provide the better research in the future. Future researcher will know and more understanding about gross domestic product when conduct this research. It will give the knowledge to the researcher to identify the correlation exist between inflation rate and employment and it always make the researcher briefing to know deeply and applied the study. 1.4.2 Organization This study might help the organization in analyzing the countrys economic condition in order to prevent and reduce the risk during the inflation and know the effects of the crisis occurs to them. This study also may give some guidance to them to protect their company and industry itself. 1.4.3 Public This study can inform and gives some knowledge to the public the relationship between economic growth, inflation rate and employment. They also can make preparation to face the increasing in inflation rate and able to survive in that situation. 1.5 SCOPE OF THE STUDY The researcher chooses to conduct the research about GDP in Malaysia from 2000 until 2010 In this study, the researcher wants to determine the correlation exist between inflation rate and employment with GDP in Malaysia. It is important because as economic planners and forecasters used the GDP per capita in monitoring economic growth trend for time series. The collection of data of GDP, inflation rate and total employment were collected from Department Of Statistics Malaysia in quarterly basis. 1.6 THEORETICAL FRAMEWORK Figure 1.1: Theoretical Framework INFLATION RATE GROSS DOMESTIC PRODUCT EMPLOYMENT RATE RATE Independent variables Dependent Variable Figure 1.1 represents the dependent variable and independent variables in this study. The function of theoretical framework has been clarified by Sekaran, U. (2003) which is a conceptual model of how one theorizes or makes logical sense of the relationship among the several factors that have been identified as important to the problem. Figure above clearly discuss the correlation between Gross Domestic Product which is variable primary to the researcher while Inflation Rate and Employment act as independent variable which is influences the dependent variable. 1.7 HYPOTHESIS In classical test of significant, two kind of hypothesis are used. They are Null Hypothesis and Alternate Hypothesis. Hypothesis is a conjectural statement that describes the relationship among variable even negative or positive. Null hypothesis which is represent by H0 symbol to show that the relationship between independent and dependent variable is not exist. However alternate hypothesis is representing by H1 symbol to show that the relationship is existing between both dependent and independent variable. According to Sakaran (2004), a hypothesis defines as a logically conjectured relationship between two or more variables expressed in the form of testable statement. Relationship a conjectured on the basis on the network of associations established in the theoretical framework formulated for the research study. There are two hypotheses that can describes the correlation exists between dependent variable and independent variables. Therefore the hypothesis that can be tested as follows: Inflation and GDP H0: there is no significant relationship between inflation and GDP. H1: there is a significant relationship between inflation and GDP. Employment and GDP H0: there is no significant relationship between employment and GDP. H1: there is a significant relationship between employment and GDP. 1.8 LIMITATION / CONSTRAINTS The limitations / constraints are: 1.8.1 Time constraint The length of time is limited since the researcher does not have much time to make detailed research. The time provided only three months and the researcher need to divide time properly to complete the research because the process of collecting data is quite difficult. 1.8.2 Cost constraint The cost involves is quite high since as a student, the researcher only depend on the loan applied. Examples of cost involve in order completing this research such as cost of printing, cost of maintaining the laptop, cost of surfing the internet and etc. 1.8.3 Data constraint Since the researcher use the secondary data, the collection of data that have been publish are so limited and the related material are not very supporting the topic of research. 1.8.4 Lack of experience The researcher is less of experience in conducting the research therefore needs to refer the researchers advisor to process the data and learning the skill that needed as a good researcher. CHAPTER 2 LITERATURE REVIEW 2.1 DEPENDENT VARIABLE 2.1.1 GROSS DOMESTIC PRODUCT (GDP) Generally, according to Chan, W.W. and Lam, J.C. (2000), gross domestic product is a common measure of the economic well-being of a society. When government officials plan for the future, they consider the various economics sectors contributed to the gross domestic products. In the other study by Ivanov, S. and Webster, C. (2007), they use the growth of real GDP per capita gr as a measure of economic growth in line with other publications in the field (see Ivanov and Webster, 2007; Lopes et al., 2002; Plosser, 1992). The function of GDP also has been explained by Kosmidou, K. (2008) where gross domestic product (GDP) is among the most commonly used macroeconomic indicators, as it is a measure of total economic activity within an economy. The gross domestic product growth (GDPGR), calculated as the annual change of the GDP, is used as a measure of the macroeconomic conditions. The significance between GDP, foreign trade and foreign direct investment has been discussed by Liu Ying and Cui Riming (2008) where the economy is highlighted by the significant performance of both its economic growth and its foreign trade and foreign direct investment. Under this background, the correlation of foreign trade, foreign direct investments and economic growth in has become an important issue for academic research. Previous studies support that foreign trade and foreign direct investment have positive impacts on gross domestic product (GDP). In the study by Malul, M. and et al. (2008), the GDPpc is used mainly to compare the standard of living in different countries. It means that the higher of cost of living in a country, the higher earning of gross domestic product of the country. According to Wong, K.Y.(2008),economic growth of an economy refers to the expansion of its production possibility set, as a result of accumulation of primary factors such as labor and capital (physical and human), or improvement of production technologies. However, because the production possibility frontier (PPF) of an economy is not observable, economic growth is usually measured in terms of the growth rate of some observable variables such as real GDP or real per capita GDP. Besides that GDP also one of the result of the countrys economic activities based on the statement of Daly and Cobb (1989), GDP expresses the content of physical flows of à ¢Ã¢â€š ¬Ã…“capital, industrial production, services, resources and agricultural productà ¢Ã¢â€š ¬?. The scientific research has been conducted by Ligon and Sadoulet (2007) using a sample of 42 countries show that GDP growth, which comes from agriculture is at least twice as effective in reducing poverty compared to GDP growth coming from nonagricultural areas. In order to know the correlation between inflation and growth, Gokal, V. and Hanif, S. (2004), stated that the tests revealed that a weak negative correlation exists between inflation and growth, while the change in output gap bears significant bearing. The causality between the two variables ran one-way from GDP growth to inflation. While, according to some consensus exists, suggesting that macroeconomic stability, specifically defined as low inflation, is positively related to economic growth. 2.2 INDEPENDENT VARIABLES 2.2.1 INFLATION RATE (INF) Inflation on economic growth continues to be an important and complex topic in economics. If inflation has real economic effects, then governments can influence economic performance through monetary policy. Therefore, investigating how inflation affects economic growth pertains directly to the optimal design of monetary policy. According to Andres and Hernando (1999), for example, reducing inflation by one percentage point when the rate is 20 percent which results in an increase in the growth rate of 0.5 percent, compared to reducing inflation by one percentage point when the inflation rate is around 5 percent, which results in a decrease in the growth rate by 1 percent. Furthermore, a study by Mallik and Chowdhury (2001), the structuralisms argue that inflation is necessary for economic growth, whereas the monetarists argue the opposite, that is, inflation is detrimental to economic growth such debate started in the 1950s, focused on developing countries, which had long suffered fro m low-growth rates with high rates of inflation and larger deficits in the balance of payments. In order of inflation, the monetarists argue that price stability promotes economic growth and protects the balance of payments. They argue that inflation is major sources of economic instability because it weakens incentives for work and production, distorts the allocative efficiency of the market mechanism, erodes international competitiveness of the domestic industry, and reduces growth potential. They also argued that inflation damages economic growth by lowering domestic and foreign savings, reducing efficiency of resource allocation, and deteriorating the balance-of-payments. To monetarists, stable prices are the starting point in the process of economic development. The policy choice of a country would be stabilization with growth, or stabilization without growth. Several papers are typical of the monetarist tradition. To argue that, according to Fischer and Modigliani (1980) suggested a negative and nonlinear relationship between the rate of inflation and economic growth through the new growth theory mechanism proposed a model where the agents decide the level of labor output, and an increase in inflation reduces labor supply, and producing a decrease in economic production. On the other hand, a study by Mundell and Tobin (1965), the structuralizes argue that inflation normally accompanies economic growth in developing countries because structural rigidities and bottlenecks in supply sectors prevent the elastic supply of some basic commodities such as food, housing, energy, and transportation. Increased income as a result of growth would expand demand for such basic commodities, and prices would rise. The structuralize position is that economic difficulties in developing countries have roots deeper than just the results of inflation. Thus, structuralizes thought that inflationary pressures and det erioration in the balance of payments inevitably are attendant matters of economic growth. In developing countries, there thus would be a trade-off relationship between economic growth and inflation and an attendant deterioration in balance of payments. If a developing country wants stabilization of prices and balance of payments, it must reduce the speed of economic growth, including a sacrifice of employment. Among scholars who support the structuralize position on a positive relationship between inflation and economic performance, predict a positive relationship between the rate of inflation and the rate of capital accumulation, which in turn implies a positive relationship to the rate of economic growth. But, DeGregorio (1996) and Fischer (1926) pointed out, since money and capital are substitutable, an increase in the rate of inflation increases capital accumulation by shifts in portfolios from money to capital and thereby stimulate a higher rate of economic growth was the first to establish a negative correlation between inflation and unemployment. According to Grier and Grier (2006), it presents evidence on the real effects of inflation and inflation uncertainty on output growth. Their main findings are as follows: Inflation uncertainty has a negative and significant effect on growth Once the effect of inflation uncertainty is accounted for, lagged inflation does not have a direct negative effect on output growth; and As predicted higher average inflation raises inflation uncertainty, and the overall net effect of average inflation on output growth. Differ with theory of Bortis, H. (2004), he argues that inflation is a macroeconomic phenomenon represented by a gap between global supply and global demand. Inflation affects the money-output relationship, as does deflation; both phenomena modify the purchasing power of money over domestic output. In this view, price indices cannot come to grips with the inflation phenomenon. While Cheng and Tan (2002) in their study inflation in Malaysia, suggested that main factors affecting Malaysian inflation were external (foreign trade, foreign direct investment and technology transfer). Malaysia has been comparatively successful in balancing strong economic growth with moderate levels of inflation in the periods preceding and following the Asian Financial crisis. Actually, empirical results related to low and medium inflation are of a mixed nature; some papers (mainly these analysing the developed economies) argues that moderate inflation negatively affects growth (e.g. Alexander, 1997, Gillm an et al. 2002; Gillman and Harris 2009; Gillman et al. 2001; Fischer 1993; De Gregorio 1992 and 1993) while other argues that moderate inflation is actually stimulating growth. On the theory side Friedman (1977) in his Nobel lecture argues that a positive relationship between the level of inflation and inflation uncertainty. Friedman points out higher inflation leading to greater uncertainty, which lowers welfare and efficiency of output growth. On the other hand, Ball (1992) formalizes Friedmans hypothesis using an asymmetric information game where public faces uncertainty regarding the type of policymaker in the office. One of the policymaker is willing to tolerate a recession to reduce inflation and the other is not. During the low inflation time, both type of policymakers will attempt and try to keep it low. But, when inflation is high, only the tough type or anti-inflation policymaker will bear the economic costs of disinflation. The argument that central banks should emphasize holding down inflation comes from the beliefs that inflation has an adverse effect on macroeconomic variables, such as output and productivity growth. According to Clark (1982), inflation causes misperception of the relative price levels and leads to inefficient investment plans and therefore affects productivity inversely. Furthermore, inflation erodes tax reductions for depreciation and raises the rental price of capital, which in turn causes a reduction in capital accumulation and therefore in labour productivity. In addition, according to Feldstein (1982) inflation disrupts investment plans by imposing a higher tax rate on corporate profits and through higher effective tax rates on corporate income and accordingly affects productivity (Gilson, 1984; Boskin et al., 1980). Finally, inflation distorts price signals and reduces the ability of economic agents to operate efficiently (Smyth, 1995). According to Chen and et al. (1991), it has documented a significant relationship between the US stock returns and real economic variables such as industrial production, real GNP, interest rates, inflation and money supply. Besides that, there are also otherwise arguments that there is no relation between inflation rate and gross domestic product in the long run. For instance, Faria and Carneiro (2001) investigate the relationship between inflation and output in the context of an economy facing persistent high inflation and they find that inflation does not affect real output in the long run, but that in the short-run inflation negatively affects output. In addition, scholars such as Sidrauski (1967) suggest that there is no relationship between inflation and economic growth, supporting the hypothesis of super neutrality of money. On the other hand, Sarel (1995) asserts that there is a nonlinear relationship between inflation and economic growth. Using 87 countries, he finds the existence of an inflation threshold of 8 percent. Above the threshold there is a negative relationship between inflation and economic growth, whereas under the threshold there is a positive but not significant relationship. The others studies in order to prove Sarels result, Judson and Orphanides (1996) divide Sarels sample of countries into three groups, and they find similar results to Sarel, finding a threshold of 10 percent. Ghosh and Phillips (1998a, b) study 145 countries in the period 1960-1990 again finding similar results. Paul et al. (1997) study 70 countries (of which 48 are developing economies) for the period 1960-1989. They find no causal relationship between inflation and economic growth in 40 percent of the countries, bidirectional causality among 20 percent of the countries, and unidirectional causality for the rest (either inflation to growth or vice versa). Lastly, Mendoza (1998) finds that inflation has had no effect on Mexicos long-run economic growth since he conducted the study of inflation in Mexico. 2.2.2 EMPLOYMENT Some of studies have been conducted to examine the relationship between gross domestic product and employment. For instance, according to Okun (1962) and Philips (1958), they found different relationship both of these. Okun found a negative correlation between unemployment and economic growth, then from both propositions it can be deduced a positive relationship between economic growth and inflation while Phillips proposed a positive relationship between inflation and unemployment implying the same type of relationship. In addition, Boltho and Glyn (1995) found elasticities of employment with respect to output growth in the order of 0.5 to 0.6 for a set of OECD countries. While according to Evangelista and Perani (1996) discovered evidence suggesting that restructuring of major economic sectors reduce the relationship between economic growth and employment. A specific research conducted by Seyfried, W., among the G7 countries (Canada was excluded), a positive and significant relationship between growth in value added and employment was found only in Germany and the US. In addition, according to Verdoon (1949) and Kaldor (1966), an increase in output growth of 1 percent leads to an increase in productivity and employment growth of half a percentage point each. It should be noted that the higher the productivity effects of growth, the more difficult it will be to keep unemployment from rising. According to Okuns Law an increase of the economic growth rate by 3 percent (above the normal rate) was expected to reduce the unemployment rate by 161 percentage point. Or, to put it the other way round: The gain of real GDP associated with a reduction in unemployment of one percentage point was estimated to be 3 percent. Several studies also have been conducted to examine the correlation exists between employment and inflation rate. One of the studies by Spithoven, A.H.G.M. (1995), by the end of the 1960s evidently there was no fixed relationship between unemployment and inflation. Empirical research revealed that the relationship was not consistent over time and varied sharply between countries. This was explained as follows: in the short run higher nominal wages attract more labour and engender a fall in the rates of unemployment. As soon as the workers recognize the wage rise to be purely nominal they abstain from work, and unemployment is restored to the pre-wage-rise level, but with a level of prices higher than before. Secondly, according to Brenner (1991), confronted with a combination of unemployment and inflation (stagflation), many governments abandoned efforts to regulate the economy by the Keynesian instruments. They declared fiscal policies ineffective and sought refuge in a mixture of m onetary measures with supply-side economics. According to Keynes (1946), the volume of employment is given by the point of intersection between the aggregate demand function and the aggregate supply function. This was naively interpreted and construed to imply that a rise in costs à ¢Ã¢â€š ¬Ã¢â‚¬Å" and with this was meant a rise in costs owing to increasing government expenditure à ¢Ã¢â€š ¬Ã¢â‚¬Å" will result in an upward shift of the supply curve and will cause greater unemployment and inflation. CHAPTER 3 RESEARCH METHODOLOGY AND DESIGN 3.1 MODEL SPECIFICATION This study is to examine the correlation exists between inflation rate and total employment with gross domestic product. It uses secondary data which is based on time series data. The collection of time series data from 1982 to 2006 and the scope is in Malaysia. The researcher applied STATA software to process the data and log-log model in this study. The model applied a log transformation, since log transformations help, at least partially, to eliminate the strong asymmetry in the distribution of inflation (Sarel, 1995) and (Ghosh and Phillips, 1998a, b). The logarithm equation is written in the Equation 3.1. GDP = ÃŽÂ ± + ÃŽÂ ²1In(INF) + ÃŽÂ ²2ln(EMP) + ÃŽÂ µ (Equation 3.1) Where, GDP = Gross Domestic Product ÃŽÂ ± = Constant ÃŽÂ ²1 = Inflation ÃŽÂ ²2 = Employment ÃŽÂ µ = Error term In above equation, it shows clearly dependent variable that has been applied in this study is gross domestic product, besides that, the researcher also used two independent variables which are quantitative variables, they are inflation rate and total employment. 3.1.1 DEPENDENT VARIABLE The dependent variable is the variable of primary interest to the researcher. The researchers goal is to understand and describe the dependent variable, and to explain its variability, or predict it (Sekaran, 2006). Dependent variable of this study is factor contributed to the gross domestic product. According to Zikmund (2000), independent variable is a criterion that predicted or explained. It show that the component contributed to improving of gross domestic product depend on the listed independent variables. 3.1.2 INDEPENDENT VARIABLES According to Zikmund (2000), independent variables that expected to influence the dependent variable. Refer to (Burn and Bush, 2000), independent variables are those variables over which the researcher has some control and wishes to manipulate. In this study, two independent variables will influence the dependent variables. They are inflation rate and employment. 3.2 DATA SET AND METHODOLOGY The collections of data in this research only gain from secondary data and based on time series data which are from 2000 to 2010. The researcher has considered annual data of real GDP, inflation rate and employment. All the data on the growth rate of real GDP, Inflation and total employment were obtained from Department of Statistics Malaysia database. GDP is considered per capita. In addition, according to Aigenger (2005) per capita real GDP is also used as an alternative measure of productivity, as some theoretical models do. Moreover, according to OECD (2001), living standards as represented by per capita income reflects productivity since the former is determined, to a significant extent, by the latter. CPI consider in weight 100 while employment in number of labor. The variables were selected based on relevant economic theories that allow for the interaction among inflation rate and total employment in addition to response to GDP. 3.3 TECHNIQUE ANALYSIS DATA In this research, the researcher has applied unit SPSS in order to determine time series data is stationary or non stationary about the correlation between inflation rate and employment with gross domestic product. The researcher examines the existence of a long-run relationship between inflation and employment with GDP using a vector error-correction model (VECM) after applying Johansens (1988, 1990, and 1995) cointegration technique. We conduct a test for weak exogeneity in order to do inference. Then, the researcher conduct stability test by using Jarque Bera test in order to test normality distribution between the variables selected. Finally, a modified version of the Granger causality test is applied in order to analyze causality between the variables. 3.4.1.1 Multiple Regression Analysis Multiple Linear regression analysis is an analysis of the relationship between one variable (dependent variable) and set of variable (independent variables). It is used by the researcher to test the hypothesis. As in all hypothesis tests, the goal is to reject the null hypothesis and accept the alternative hypothesis. This technique will identify how much of the variance in the dependent variables can be explained by independent variables. This analysis is used primarily for the purpose of prediction. The regression model can be used to predict the value of the proposed model in the study is: GDP = f (INF, EMP) GDP = ÃŽÂ ± + ÃŽÂ ²1 Inflation+ ÃŽÂ ²2 Employment + ÃŽÂ µ Where, GDP = Gross Domestic Pr

Fast food

Fast Food Currently, most of the people depend on fast food which is easily accessible rather than cooking food at home which is a time consuming task. Fast food is the most popular food in America. Does fast food proves to be a healthy option for a daily purpose? Is fast food healthy? Being an argumentative topic this term â€Å"fast food† comes up with many questions. Fast food is a quick way of filling up your stomach but it is followed by many unknown and known disadvantages. As a peek in the â€Å"Consumers reports on fast food: four big names lose† from the book â€Å"TheNorton Field Guide to Writing†, the reporter mentions that † Next time you have a craving for fast food, think twice before slowing down for Burger King, KFC, McDonald's, or Taco Bell†. The fast food restaurants the reporter mentioned here, are the most famous and renowned places, where the consumer is attracted to eat due to food and low prices. In my opinion there is only one reason why anyone should rely on fast food couple of times and that is time saving. It saves time. But there are many other reasons as surveyed by the reporters for people to be attracted towards fast food.One major reason is the low prices. As also mentioned in the research named â€Å"Fast foods† from the â€Å"Black book† by â€Å"Emanuel Goldman- Alfred L. Simon†, that, â€Å"McDonald's might not be ready with the problems with its chicken†. But, if we see as a whole the prices of McDonald's are very low which hides the fact that there have been many issues with the chicken it use. People are attracted to McDonald's even today for their meals. There are many problems caused due to the regular intake of fast foods. Some serious problems are Obesity, weight gain, type two diabetes, coronary artery disease and PCOD.Obesity is one of the most common and erious problems found in Americans. This problem is a clear and direct result of the lifestyle in Ameri ca. The habit of substituting meals with the fast food gives a birth to obesity in an individual. In the Journal, â€Å"Fast Food: Unfriendly and Unhealthy' from â€Å"International Journal of Obesity', the author S Stender, J Dyerberg, and A Astrup has given the example of a documentary film ‘super-size me', where the character Mr. Spurlock ate McDonald's food thrice a day for 30 days and gained 11 kg.This film raises a question that whether fast food poses a special health risk. This is a very mportant question to be answered for all the fast food lovers. The other problems like PCOD and diabetes are a result of fats food intake. The Polycystic ovarian disease found in most of the women these days is caused due to the weight gain. This weight gain is a result of our food habits, like consumption of fast food on a regular basis. Another reason for the increased craving for fast food among the kids is the fast food ads which are made graphically innovative so as to attract t he kids.The recent study shown by â€Å"The Washington Post† in their program, â€Å"Trying to Cut Back on Fast Food Ads for kids†Ã¢â‚¬Ëœ mentioned that the obesity in kids of age group 6-11 has gone down because some fast food chains have cut down in their advertising. This statement shows that the advertisements and obesity in kids are directly proportional to each other. This is a strategic advertisement plan for the fast food agencies to make profit. They invest more on advertisements targeting the kids as their main audience and are women.Young women are facing many problems due to the intake of fast foods. In a Journal â€Å"Dieting Behaviors of Young Women Post-College Graduation†, the uthors â€Å"Soliah, LuAnn Walter, Janele Antosh and Deeanna†, had conducted a survey that included questions about the eating habits of women and their psychological affinity for food. The conclusion of the survey was not shocking but very obvious that three groups of women appeared to be at an increased risk of unhealthy eating and poor food selection decisions.The unhealthy food here is the fast food. Fast food is the most selling food worldwide. There are many reasons one cannot avoid the fast food. Good taste is one of the biggest reasons. Low prices are another reason which attracts the consumer. Fast food has become the regular meal of people. Whenever I visit any food chain I can see a bunch of people spending their valuable money on something which could be harmful for their health. The conclusion, henceforth, is very clear that fast food is not healthy in any terms.Fast food consumed results in many problems which are ignored by the fast food consumers. America faces most of the consequences of eating fast food on a regular basis. Some problems are very serious like obesity and diabetes which are a direct result of fast food consumption. It is still not late for the people to put a light on the articles and surveys conducted n the fas t food being a disaster and learn a lesson through their results. Fast food industries should be responsible enough to advertise less or make their food healthy instead of cheesy and greasy.An individual should keep a track on their diet decisions rationing them with their daily intake fast food and other diet. The comparison would be very useful for an individual to realize how to make their health and wealth lives longer and strong. Fast Food odBradd DentFast Food Nation Questions Introduction America’s fast food industry was founded by self made man who took risk, worked hard, some not even going to collage. Today the industry relies on a low-paid and unskilled workforce, where a handful are able to rise up the corporate ladder, while the vast majority lack fulltime employment, receive no benefits, and end up quitting after a few months. The fast food industry prospered over the last 30 years because minimum wage was lowered, marking was directed at children, federal agencies meant to protect workers and consumers ended up working for the companies, and corporations worked with congress to oppose laws that didn’t help them. The â€Å"American world view† is embodied in fast food because it takes advantage of those who don’t know any better. Chapter 1 The element of car based restaurants like the ones started in Southern California encouraged the spread of fast food because they had good food, became successful, and were very popular among young people. Chapter 2 Disney and Kroc were similar because they both used science to sell their products, made up famous mascots to sell products and both focused selling to kids. They were different because Disney founded his company, and Kroc bought his, they sold different products, and Kroc wasn’t involved in politics, while Disney was. Their companies cooperated when McDonald’s agreed to sell Disney toys and Disney agreed to allow McDonald’s in Disneyland. The fast food industry started with billboard ads to attract kids and evolved to adverting every where, from TV, to the internet, to school hallways. They also make the restaurants themselves fun for kids with play places and selling toys so they want to go more, and even as adults bring their own kids. Personally, I don’t think it is ethical to advertise in schools because it fast food is unhealthy and kids should be learning that, not that the burgers at McDonald’s get and A in taste. Chapter 3 Most employees of fast food restaurants ate teenagers because most are willing to work long hours with little pay. Fast food corporations relentlessly stop their workers from unionizing by doing things like integrating workers with information about a possible union with lie detectors, or closing locations with unions and opening new locations near by. Working conditions at fast food restaurants are unsafe. Typical dangers the employees face ate slips, fall, cuts, burns, and robberies. Problems are dealt with by increasing security with cameras or more parking lot lights. If I worked at a fast food restaurant and I injured my self, I might not tell my manager because I could loose my job because they could blame me for the injury. Chapter 4 The advantages of starting your own business is if it is successful, you could get a lot of money, not to mention you are your own boss so no one besides the government tells you how to run your business. The disadvantages are the business could be unsuccessful and you could loose a lot of money. The advantages of working for someone else are you do not have to make too many tough decisions. The disadvantages are you will not make as much money as your boss, and you may not like your boss for whatever reason. Some legal issues that fast food franchises have been involved in are the Coble’s Bill which makes franchises obey the principles other companies follow. The Subway fast food franchise was involved in the SBA which helps restaurants by giving them government funds. Subway got involved and made it so they would get extra money. Chapter 5 Family farms are disappearing because industry farms take all the business and close family farms because they have no one to sell to. there are only a few small potato farms left because industries take up all the land and business. The take-over of agricultural farms effects communities because local farms go out of business and communities become dependent on the corporate farm. Chapter 6 Development and fast food farms take land and effects cattle pastures because there is less land for the cattle to graze. Since most cowboys and ranchers have gone out of business, they have become irreverent in today’s culture. The government set up the Sherman Antitrust Act and a congressional investigation in the meet packing industry to help ranchers. Later, the Reagan administration allowed the top four meat packing firms to merge and they took over the cattle markets. Corporate domination affected family farms by forcing them to work for them or go out of business. Self-reliance is still a viable goal for Americans, but has become very difficult because of big corporations. The fast food industry makes chicken farmers work for them or they would get no business. In farm culture, the land is a tangible connection to the past, meant to be handed down and not sold. To native Americans, the land meant life and prosperity. In traditional Irish culture, the land is a link to past generations and to loose the land meant to fail your relatives. Their concept of land is similar to the American concept. Chapter 7 The demands of the fast food industry changed towns by making is so almost everyone ends up eating fast food because the industries are aloud to put their restaurants wherever they want and advertise as much as they want until the town’s economy runs on the fast food restaurants. Chapter 8 Meatpacking is dangerous because of the machines and rarely cleaned cutting tools. Since a meatpacking manager’s bonus is based in part on injury rate, many injuries go unreported and the worker is either given an easer job to takes time off to recover. Chapter 9 The meat packing and meat processing industry has been a spreader of disease because the animals are not screened well enough or sick workers spreading disease on the animals. After reading about the pathogens in hamburger meat, I am concerned about food poisoning in fast food. E. coli is not common in restaurant food, but is likely to be in hamburger meat. Chapter 10 Many Americans are obese because of lack of information and improper food laws. Fast food probably plays a big part in obesity because it provides unhealthy food to almost every where. Americans are probably more obese than other countries because fast food started here. Fast food companies increase the size of their meals to effect the calorie count look better for the per serving part. This effects American health because it is misguiding and you eat more than you thought you were going to. People in other countries do not want fast food because they have seen its effect on America. Epilogue The free market Schosser talks about leaves workers unprotected with little interference from the government. In the quote, Schosser is referring to the free market. I agree to what Schlosser says on 216. I believe the government needs to work harder to protect both the workers and consumers of fast food. At the end of the Epilogue, the author remedies his criticisms with the fact that it is a persons choice to eat want. Afterword Mad Cow disease is a disease that slowly destroys the brain and can be spread through hamburger meat. It can be controlled by feeding cows grass instead of corn and hormones, and inspecting the meat better. Cattle get infected by it because they stand in the dung of an effected cattle. It is a very serous threat to humans. Fast food Fast Food Currently, most of the people depend on fast food which is easily accessible rather than cooking food at home which is a time consuming task. Fast food is the most popular food in America. Does fast food proves to be a healthy option for a daily purpose? Is fast food healthy? Being an argumentative topic this term â€Å"fast food† comes up with many questions. Fast food is a quick way of filling up your stomach but it is followed by many unknown and known disadvantages. As a peek in the â€Å"Consumers reports on fast food: four big names lose† from the book â€Å"TheNorton Field Guide to Writing†, the reporter mentions that † Next time you have a craving for fast food, think twice before slowing down for Burger King, KFC, McDonald's, or Taco Bell†. The fast food restaurants the reporter mentioned here, are the most famous and renowned places, where the consumer is attracted to eat due to food and low prices. In my opinion there is only one reason why anyone should rely on fast food couple of times and that is time saving. It saves time. But there are many other reasons as surveyed by the reporters for people to be attracted towards fast food.One major reason is the low prices. As also mentioned in the research named â€Å"Fast foods† from the â€Å"Black book† by â€Å"Emanuel Goldman- Alfred L. Simon†, that, â€Å"McDonald's might not be ready with the problems with its chicken†. But, if we see as a whole the prices of McDonald's are very low which hides the fact that there have been many issues with the chicken it use. People are attracted to McDonald's even today for their meals. There are many problems caused due to the regular intake of fast foods. Some serious problems are Obesity, weight gain, type two diabetes, coronary artery disease and PCOD.Obesity is one of the most common and erious problems found in Americans. This problem is a clear and direct result of the lifestyle in Ameri ca. The habit of substituting meals with the fast food gives a birth to obesity in an individual. In the Journal, â€Å"Fast Food: Unfriendly and Unhealthy' from â€Å"International Journal of Obesity', the author S Stender, J Dyerberg, and A Astrup has given the example of a documentary film ‘super-size me', where the character Mr. Spurlock ate McDonald's food thrice a day for 30 days and gained 11 kg.This film raises a question that whether fast food poses a special health risk. This is a very mportant question to be answered for all the fast food lovers. The other problems like PCOD and diabetes are a result of fats food intake. The Polycystic ovarian disease found in most of the women these days is caused due to the weight gain. This weight gain is a result of our food habits, like consumption of fast food on a regular basis. Another reason for the increased craving for fast food among the kids is the fast food ads which are made graphically innovative so as to attract t he kids.The recent study shown by â€Å"The Washington Post† in their program, â€Å"Trying to Cut Back on Fast Food Ads for kids†Ã¢â‚¬Ëœ mentioned that the obesity in kids of age group 6-11 has gone down because some fast food chains have cut down in their advertising. This statement shows that the advertisements and obesity in kids are directly proportional to each other. This is a strategic advertisement plan for the fast food agencies to make profit. They invest more on advertisements targeting the kids as their main audience and are women.Young women are facing many problems due to the intake of fast foods. In a Journal â€Å"Dieting Behaviors of Young Women Post-College Graduation†, the uthors â€Å"Soliah, LuAnn Walter, Janele Antosh and Deeanna†, had conducted a survey that included questions about the eating habits of women and their psychological affinity for food. The conclusion of the survey was not shocking but very obvious that three groups of women appeared to be at an increased risk of unhealthy eating and poor food selection decisions.The unhealthy food here is the fast food. Fast food is the most selling food worldwide. There are many reasons one cannot avoid the fast food. Good taste is one of the biggest reasons. Low prices are another reason which attracts the consumer. Fast food has become the regular meal of people. Whenever I visit any food chain I can see a bunch of people spending their valuable money on something which could be harmful for their health. The conclusion, henceforth, is very clear that fast food is not healthy in any terms.Fast food consumed results in many problems which are ignored by the fast food consumers. America faces most of the consequences of eating fast food on a regular basis. Some problems are very serious like obesity and diabetes which are a direct result of fast food consumption. It is still not late for the people to put a light on the articles and surveys conducted n the fas t food being a disaster and learn a lesson through their results. Fast food industries should be responsible enough to advertise less or make their food healthy instead of cheesy and greasy.An individual should keep a track on their diet decisions rationing them with their daily intake fast food and other diet. The comparison would be very useful for an individual to realize how to make their health and wealth lives longer and strong.

Huntington Theory †Military Professional Essay

Scholars like Kaplan, Friedman, Huntington and Barnett have postulated various theories on military service. Samuel P Huntington is one of the scholars who have postulated theories of military service. His theory is also referred to as the normal theory. This paper seeks to show how Huntington’s theory impacts on one’s future in military service. Discussion Owen M (2010) gives credit to Samuel Huntington for his role in developing the normal theory. Owen points out that through this theory Huntington endeavored to solve the dilemma of â€Å"how to guarantee civilian control of the military while still ensuring the ability of the uniformed military to provide security. † Huntington cited in Owen (2010) says the solution to this dilemma lies in â€Å"a mechanism for creating and maintaining a professional, apolitical military establishment, which he called â€Å"objective control. In this regard, Huntington cited in Williams (1995), says the community should have control over the military and army professionals should be denied some of the privileges enjoyed by civilians like political affiliations. Politics is a game of numbers, in my view, this may disadvantage military officers who harbour ambitious of venturing in politics because they are denied involvement in political parties affairs. This impacts negatively on their popularity with the voters. However, there are those candidates such as 2008 republican candidate John McCain who used their experience in the military as a campaign tool to endear themselves to the voters. In my view, professional and experienced military officers make better commander in chief of the armed forces. Additionally, Idsa (2010) concurs with Huntington that one way of achieving civilian control of the military is by ensuring that the funding of the military is left in the hands of the civilian institutions. Idsa points out that civilian institutions should allow the military to advise them on military matters but ultimately the military should only executive those decisions approved by the civilian institutions. In my view this may endanger the lives of military officers. Due to high budgetary needs of a country, military equipment needed in times of war may be sacrificed to meet other needs in another sector of the economy. Huntington theory goes along way in developing responsible and knowledgeable persons. As Idsa (2010) points out military professionals should present their considerations within the appropriate â€Å"channel of authority and communication. † To effectively carry out his/her duties, Huntington as cited in Williams (1995) states that an army officer must be highly expertise, cooperative and responsible in his profession. He meant that an officer must be well knowledgeable in combating violence. Williams (1995) while says that after training the officers should only work with three words â€Å"duty, honor, country. † As a result, Huntington envisaged a military force free of corruption. The officer is expected to be different from other skilled workers in that money should not play any part enticing one to join the forces. However, the army professional should be well rewarded so as to promote hiring, maintain the officers in the force and boost their morale. Williams (1995) says that Huntington argued that a well skilled army professional should be willing to observe the legal requirements made by citizen organizations recognized by law. In addition, the officers should accept to act as subordinates to individuals as required by legalized community organizations. The military officers are expected to hold a high opinion of their career and should not cause civil unrest or run the government. Since the army professionals are recruited with certain levels of qualification, and by the virtue that they belong in the same profession and hold same competencies, the officers tend to exhibit cooperativeness. This supports the statement of Huntington as quoted by Williams (1995) that â€Å"the members of a profession share a sense of organic unity and consciousness of themselves as a group apart from laymen. . This attribute is fostered by their common training which take quite a long duration, collective discipline and sharing of their societal tasks (Williams, 1995). Conclusion In view of the above statements, Huntington theory helps in creating and maintaining cordial relations between the civilians and the military officers. A professional force envisaged in this theory will go along in ensuring peaceful co-existence helps fight vices such as cor ruption and military coups.