History of the U.S. Income Tax Essay

The personal duty of the United States of America, be it government, state and nearby, has changed after some time. Various conditions pushed the legislature to make tax collection and to revise the current tax assessment laws. During the pre-Revolutionary War period during the 1700s, charges were not forced by the pioneer government as their requirement for charge income didn't exist. The settlements, then again, had more noteworthy duties hence, had more prominent requirement for charge income. Along these lines, various sorts of expenses were forced by the states. The southern states forced assessments on imports and fares while the center provinces forced duties on property and a survey charge on every grown-up male. The New England states, then again, gathered expenses through property charges, personal assessments and extract charges. At the point when the English Parliament understood the requirement for cash to pay for the French war, it forced diverse duties to the American provinces through the Stamp Act which was sanctioned in 1765. Later on, this Stamp Act was updated to incorporate expenses for licenses, papers, authoritative records and playing a game of cards. The Townsend Act was later on sanctioned by the Parliament to incorporate assessments for paint, tea and paper . Following a time of covering charges, there was a lot of protection from the expense forced by the Parliament. During the Boston Tea Party in 1773, pioneers, dressed as Native Americans, tossed 342 chests of tea from a boat of the British East India Company to the Boston Harbor. In 1775, Isaac Backus during the Massachusetts Assembly said that â€Å"It’s not all America currently speaking to Heaven against foul play of being taxed†¦We are convinced that a whole opportunity from being burdened by common rulers†¦is not unimportant kindness from any men on the planet however a privilege and property allowed us by God, who orders us to stand quick in it† . Tax collection is considered as one of the components that prompted American War for Independence henceforth, when America picked up its Independence, Article 1, Section 9, Article 4 of the U. S. Constitution in 1787 announced that there be no capitation or any direct duties forced on the residents. The national government had almost no duties during these occasions and depended distinctly on gifts given by the States for its income. In any case, in 1789, the Founding Fathers understood that it couldn't work at its proficiency on the off chance that it depended uniquely on other governments’ gifts thus the Federal Government was conceded the position to force charges. The affectability to tax assessment was all the while existing as of right now subsequently the legislature must be cautious on how it force burdens in order to limit opposition from its kin. Alexander Hamilton, Secretary of the Treasury during the 1790s, concluded that a â€Å"sin tax† was forced . Through the â€Å"sin tax†, just things which society believes is freak or bad habit were burdened, for example, refined spirits, liquor and bourbon. Notwithstanding, this despite everything prompted the equipped revolt called Whisky Rebellion by a gathering of South Pennsylvania ranchers. As yet during the 1790s, the Federal Government forced direct duties to proprietors of houses, slaves and land. In any case, when Thomas Jefferson was chosen for office in 1802, these direct expenses were expelled and for the succeeding 10 years, just extract charges were forced. The purpose behind this was on the grounds that he understood the opposite relationship of assessment rates and expense income wherein the higher the charges forced on the residents, the more slow the economy develops henceforth the duty income decays. A cut in the pace of assessment implies that pay for the family will get higher, consumptions become higher and consequently, the economy encounters development. During the 1812 War, the requirement for charge income reemerged again henceforth burdens on the deals of gold, gems, watches and silver were forced. Treasury notes were additionally given to fund-raise. Nonetheless, in 1817, the Congress denied these expenses and for the following 40 years, government income depended on high traditions obligations and offer of government or open land . In 1861, when the Civil War ejected, the Revenue Act of 1861 was sanctioned. This Act reestablished the past expenses on close to home salary. This expense was like the advanced annual duty since it depended on a slow tax assessment from denying assessment of its source. An individual gaining $600 to $10,000 a year made good on 3% charge. People with salary higher than $10,000 paid a higher pace of assessment. In 1862, the obligation made by the war was increasing at a pace of $2 million every day thus there was another requirement for the legislature to expand its income. Along these lines, the Congress passed another expense inconvenience on things such black powder, playing a card game, wires, iron, pianos, yatchs, drugs, among others. After the Civil War, the requirement for income declined and henceforth the personal duty was annulled and just the extract charges stayed from 1868 to 1913. The War Revenue Act in 1899 was authorized to raise assets for the Spanish-American War. Government incomes, through this Act, was raised through deals of bonds, charge burden on recreational offices, brew and tobacco. In any case, the Supreme Court understood that the individuals of America were turning out to be mindful that the high tarrifs and extract charges were bad to the monetary government assistance of the country and that these expenses were typically paid by the less wealthy residents. Henceforth, there was an understanding that business salary rather was forced duty. By 1913, Congress ordered another annual assessment law which forces 1% to 7% for people with pay above $500,000. These individuals winning above $500,000 was just 1% of the all out United States populace . During World War I, the United States expected to build its income again to subsidize the war. The 1916 Act raised the expense inconvenience from 1% to 2% and could go as high as 15% for those with pay of more than $1. 5 million. By 1917, the administration despite everything needs further government income to pay for the war, henceforth the War Revenue Act of 1917 was ordered. Through this Act, exclusions were brought down and charge rates expanded that the individuals who acquire $40,000 requirements to pay 16% expense rate. In 1918, the expense rates were additionally expanded. Those residents paying 1% needed to pay 6%. The most elevated rate in 1917 was 15% yet during 1918, this was expanded to 77%. Because of this expansion in charge rates, government income expanded from $761 million during 1916 to $3. 6 billion out of 1918. After the war, the administration income rose and the administration chose to slice assessments to 1% base rate and 25% top rate . The Great Depression during the late 1920s and mid 1930s pushed the administration to by and by increment the assessment rates. The Tax Act of 1932 was authorized and by 1936, the base duty rate was at 4% and the top expense rate arrived at 79%. At the point when the World War II came, another value climb came into place which changed the duty rates. Those with available salary of under $500 paid a base pace of 23% duties while those winning available pay of over a million dollars paid about 94% of charges . The expense structure in the United States was additionally intensely modified in that the quantity of citizens expanded from 4 million during 1939 to approximately 43 million during the World War II. All through every one of these long periods of actualizing tax assessment, the administration took in a significant exercise which up to this point is being esteemed by government authorities and financial experts and has influenced the expense laws authorized in the nation †the peripheral dollar is unmistakably progressively imperative to the economy contrasted with the duty rate being utilized. The Economic Recovery Tax Act of 1981 was executed in light of this significant exercise. In contrast to the past tax assessment laws, this Act was proposed to concentrate on minimal expense rates and it likewise included utilization charges. In any case, because of the profound downturn experienced by the nation in 1982, the legislature was indeed confronted with the need to expand charge rates to conquer spending deficiencies. Following the 1982 downturn was a monetary blast which lead the nation to accept that minimal expense rates are significant for a solid economy. During the Reagan organization, charge rates were additionally decreased and had a more extensive base through the Tax Reform Act of 1986. This diminished expense rate from half to 28% while business charges were decreased from half to 35% . In 1997, the Taxpayer Relief Actof 1997 was ordered. The critical party of this Act was the Per Child Tax credit which profited the lower-salary families. During the Bush organization in 2001, the administration encountered a spending overflow of about $281 billion thus a tax break was by and by led . This tax reduction included bringing up the Per Child Tax Credit from $500 to $1,000 per youngster, just as expanded the Dependent Child Tax Credit. As of not long ago, this assessment law is being actualized and is relied upon to help financial development for the nation.

Aluminum vs Aluminium Element Names

Aluminum versus Aluminum Element Names Aluminum and aluminum are two names for component 13 on the intermittent table. In the two cases, the component image is Al, despite the fact that Americans and Canadians spell and articulate the name aluminum, while the British (and the greater part of the remainder of the world) utilize the spelling and way to express aluminum. Source of Two Names The source of the two names might be inferable from components pioneer, Sir Humphry Davy, Websters Dictionary, or the International Union of Pure and Applied Chemistry (IUPAC). In 1808, Sir Humphry Davy recognized the presence of the metal in alum, which he from the start named alumium and later aluminum. Davy proposed the name aluminum when alluding to the component in his 1812 book Elements of Chemical Philosophy, in spite of his past utilization of alumium. The authority nameâ aluminium was received to accommodate with the - ium names of most different components. The 1828 Websters Dictionary utilized the aluminum spelling, which it kept up in later versions. In 1925, the American Chemical Society (ACS) chose to go from aluminum back to the first aluminum, placing the United States in the aluminum gathering. As of late, the IUPAC had recognized aluminum as the correct spelling, yet it didnt get on in North America, since the ACS utilized aluminum. The IUPAC periodic table directly records the two spellings and says the two words are superbly acceptable.â History of the Element Guyton de Morveau (1761) called alum, a base which had been known to the antiquated Greeks and Romans, by the name alumine. Davy recognized the presence of aluminum, yet he didnt disconnect the component. Friedrich Wã ¶hler disconnected aluminum in 1827 by blending anhydrous aluminum chloride in with potassium. As a matter of fact, however, the metal was created two years sooner, however in debased structure, by the Danish physicist and scientific expert Hans Christian Ørsted. Contingent upon your source, the disclosure of aluminum is credited to either Ørsted or Wã ¶hler. The individual who finds a component gets the benefit of naming it; in any case, with this component, the personality of the pioneer is as contested as the name. Right Spelling The IUPAC has decided either spelling is right and satisfactory. In any case, the acknowledged spelling in North America is aluminum, while the acknowledged spelling pretty much wherever else is aluminum.

Great Expectations

Great Expectations Expectation: There is no way I’m getting into MIT, let alone becoming a blogger. But sometimes reality takes unexpected turns for the better. Hi, I’m Michelle, and it’s super nice to meet you! If you didn’t notice, I’m a newborn in the blogging world, with this being my very first post. And while I think that I’m pretty much living proof that miracles can happen, I’ve learned that sometimes they don’t, and that’s totally 100% okay. Since I’ve gotten to this crazy Institvte, I’ve learned to live with the fact that most things aren’t going to turn out how you expected them to. Have a few anecdotes!! Expectation: I start using my dorm’s facilities to exercise regularly, and start to use its cooking facilities to maintain a healthy diet with vegetables such as broccoli. Reality: I gain the orientation 15. The exercising thing just straight up has not happened. I have not made the effort to lift my precious little legs off my comfy little bed and move them like my biology intended for me to do. I don’t know how long my body can sustain this level of non-activity. I do not know how much longer I have. Tell my family I love them. But really â€" it’s a difficult adjustment to the college lifestyle, with the food thing being a big part of the change. There are amazing places to eat all around me, and I just have all of this freedom and nobody telling me that I can’t go eat at Flour Bakery literally every day. I want to eat something? Nothing is stopping me. I want to do something? Nothing is stopping me. College, man! Expectation: MIT doesn’t get hard until classes start. Reality: The square dancing life is not for me :’o Before orientation, each MIT freshman has the option to take part in a freshman pre-orientation program. So back in June, I signed up for the Freshman Arts Program (FAP), vaguely expecting something easy and relaxing to start out my MIT adventure. I met the FAP counselors outside the student center, had a few brief “so what’s your name?” interactions with other freshmen, and then journeyed over to the Walker Memorial building where we had our first official activity. An MIT alum stood up in front of everyone and started telling us that he was really into square dancing and that he was going to teach us a few moves. Okay, I think I can handle that. But no. No, no, no, no, no â€" it was so hard! I don’t know if it was just me or what, but I kept fumbling around and messing up the dance moves so badly that I just decided to give up. I think that a lot of people assumed I was intentionally doing the wrong steps, and honestly, I’m 100% okay with them thinking that. After like two hours of intense square dancing, we went for an FPOP barbecue dinner. The instructor approached me and asked how I like the dancing, and I told him that I liked it, but I wasn’t very good at it. He looked at me and laughed. “I noticed.” (But really, FAP was fun. Do FAP!) Expectation: I get placed into Senior House. Reality: I get placed into Senior House, but it’s a little more complicated than that. At most schools, I think it’s pretty simple. You get assigned your dorm and room sometime during the summer. They might be based on your preferences, and they might not, but the point is that you actually know where you’re going to be living before you get to campus. Personally, I had taken a special liking to Senior House during some of their CPW events. I thought that the residents were all really cool people, and that I would have the most fun living at this dorm. I filled out my housing request form with Senior House in the #1 spot (East Campus 2nd, Burton-Conner 3rd…) and was notified a month or two later that I had secured a spot in my first choice dorm. Room 414A. Cool! About a week after moving in, the dorm hosted an in-house Rush event. This basically means that new residents walk around to different floors of the dorm and talk to upperclassmen about living in that area or floor. Of course, I made the mistake of neglecting this opportunity and not really knowing how the system worked, so I ended up getting moved from my room on the 4th floor to an area I like a little bit less on the 3rd floor. But, oh well, it’s fine, because all of my friends in the building are still a maximum of 2 minutes away from me. It’s a matter of “great” and “still pretty good”. Expectation: I’ll totally get a head start at MIT with the things I learned in my AP classes. Reality: I get to teach you all a very valuable lesson about studying for ASEs… MIT does physics AP credit kind of strangely. You can get credit for 8.01 (Classical Mechanics) with 5s on both AP Physics C tests, but you can’t get credit for Electricity and Magnetism with those same hard-earned 5s. Instead, if you want to skip out of EM physics, you have to pass an Advanced Standing Exam during orientation. When I learned this information, I thought to myself: easy! If I was able to get 5s on my APs and As in my classes, then I should have no problem simply passing the EM exam. I’m not even going to bother reviewing anything that I didn’t learn in high school. Psh. Not necessary…like… at all. Upon taking the test, I encountered a slightly different set of thoughts, including “What??? What does this mean? And why does it feel so pathetic to leave an entire question blank?” There was so much stuff on that test that I had never seen in my AP Physics class, so if you’re planning to take that ASE one day, you should make sure to prepare thoroughly during the summer using MIT material. I’m taking 8.02 (Physics EM) this semester, and I’m excited to learn some cool new stuff, but it probably would have been cooler to be able to pass that requirement from the start. Oh well. Expectation: I’m a big shy baby and it’ll probably take me a few months to make any new friends. Reality: I mean Im still a big shy baby, but thats kind of ok I just wanted to mention this because I’m assuming that some of you can relate to a fear of large, unfamiliar groups of people. You’ll always know those social geniuses who know just what to say in any multi-human setting, but for the rest of us, entering a new environment can be kind of a scary thing. I personally spent way too much time worrying about what kinds of impressions I would make on people, and whether they would hate me or not. Seriously, don’t worry. People are nice. People will talk to you, and you’ll laugh about something dumb together, and you’ll start to feel at home. A large group of strangers might wander into your suite and stay until dawn breaks, and you’ll have fun just by being together as you situate yourself into your home away from home. Your non-freshmen friends will offer advice on how to succeed, unless you’re me, in which case they’ll tease you about not having made a blog post yet. But now I have. So there you go. :)

Taking a Look at Wikipedia - 1062 Words

Wikipedia is an online encyclopaedia, which contains open articles that can be edited by a number of users. The site prides itself on providing un-biases information from a neutral point of view (NPov). However, since the general public provides the majority of information, it is difficult to know how accurate the information truly is. The article that will be reviewed and analyzed contains information about the events of September 11, 2001 as well as how wiki can be used as a learning tool. The opening line of the article states â€Å"the September 11 attacks were a series of four coordinated terrorist attacks launched by the Islamic terrorist group al-Qaeda upon the United States in New York City and the Washington, D.C. metropolitan area on†¦show more content†¦An effective article should enlighten readers on both facets and let reader decide what approach to take moving forward. Another bias that can be detected is the pro-America theme throughout the article. Words such as attacked, tragic, and motivated, insinuates this was an unprompted attack against a peaceful nation. Again what is missing is taking into account where the â€Å"attackers† are coming from. The article should provide readers with a historical background on the relationship between the United States and the key players of al-Qaeda. This would allow readers to come to an educated conclusion about what motived the events to happen in the first place. It is not only the article itself that contains biases; the references used to support this article are also very one sided. Most of the thirty-three references come from CNN, New York Times, Fox News, National Transportation Safety Board and various other American organizations. Since most of the information being provided is coming from American sources, only an American prospective is being considered. Therefore the article is really only a summary of events as told by the American media, and only reinforces what media outlets want the American public to believe. It is easy to understand why Wikipedia attracts over one million viewers everyday; not only is the site free; it contains over three million articles (most of which areShow MoreRelatedWith five billion pages a month and millions of topics covered by those five billion pages, one600 Words   |  3 Pagesmillions of topics covered by those five billion pages, one might argue that Wikipedia is a legitimate research method. So what? There is five billion pages covering numerous topics. Who writes these pages? Are they credible authors and certified experts on the topics? Probably not because according to â€Å"Wikipedia: About,† â€Å"Wikipedia is written collaboratively by largely anonymous Internet volunteers who write without pay† (Wikipedia 421). Due to the fact that anyone can edit a page, its anonymous volunteerRead MoreAstoria, Queens : Website Analysis1233 Words   |  5 Pagesinformation is obviously Wikipedia, and that was one that we were not allowed to use for our projects. As a review of Wikipedia’s information on Astoria, Queens, I will be providing my criticism on its content, sources, and talk page, all while answering the overall question on whether or not Wikipedia’s article is credible and trustworthy. Content is very important when it comes to a website that provides information to its visitors. Truthfully, I thought that the article that Wikipedia prepared on informationRead MoreAnalysis Of The Article Battle Of Hastings 1518 Words   |  7 PagesThe article from Wikipedia called â€Å"Battle of Hastings† is about the historical Battle of Hastings, fought on October 14, 1066. Part of the Norman conquest of England, it was between the Norman-French army of William, the Duke of Normandy, and an English army under the Anglo-Saxon King Harold Godwinson. Taking place approximately 7 miles northwest of Hastings, East Sussex, England, it was a Norman victory. This significant battle was fought due to the death of childless King Edward the Confessor whichRead MoreAnalysis of the battle of Beersheba Essay1017 Words   |  5 PagesBeersheba although the charge was born of the desperation of having no water and needing to capture the wells in Beersheba. (Wikipedia 2013) (Australian reserve forces council 2013) 50,000 British troops attacked the Turkish defenses around Beersheba on October 31 1917 they were supported by tank and artillery but failed. With sunset approaching there was little hope of taking Beersheba before night if ever but the many horses that were bought with had been ridden across the dessert in 50-degreeRead MoreQuestions On Web Filter Ui853 Words   |  4 Pages We implemented the methods proposed in sec- tion 3.1, 3.2 and 3.3 and made it available for a free use on our Regen Server. It can be accessed using the link: http://regen.informatics.iupui. edu:8080/WebForBVI/index.jsp. The user in- terface looks as shown in Figure 9. Web Filtering: We developed a generalized Figure 9. User Interface tool where you can enter any kind of web site’s URL and click on filter button as shown in Figure 10, then you will get a link for OriginalRead MoreCommunism Has the Highest Level of Ethics808 Words   |  4 Pagesthe status quo. There was no right or wrong and simply depended on the benefit of the majority. However, some will argue that communist countries become corrupt with power, because power is given to one ruler who may govern as he or she pleases. (Wikipedia, 2012) In every political system, there is corruption, question of morals and ethics. When questioning the subject of ethics, communism is the most equal by far. The gap between rich and poor are not evident and one can never complain that it isRead MoreWhen Obsession Becomes Deadly: The Life of Marie Curie Essay1472 Words   |  6 Pagestutoring. (Wikipedia 1) Against Russian law Marie attended Floating University. She and sister Bronya found work tutoring, and with the money Bronya saved enough to get to Paris and attend the University of Paris for a single year. (Yannuzzi 25). Maria made an agreement with her sister that she would give her financial assistance during Bronya’s medical studies in Paris, in exchange for similar assistance two years later. In connection with this, she took a position as governess (Wikipedia 1). Read MoreAnalysis Of The Book The Sign Of The Beaver By Elizabeth George Speare872 Words   |  4 Pageswhereas the novel presents its information subjectively through the main character’s feelings and emotions. Though writing sources differ in their genre, they can still share similarities. The book by Elizabeth George Speare and the article from Wikipedia demonstrates a closeness between each other. In the novel â€Å"The Sign of the Beaver,† Matt, the main character, is introduced to the Penobscot tribe after he falls out of a tree while being attacked by a swarm of angry bees. Fortunately, Saknis, theRead MoreAnalysis Of Xero Add Ons Providing Enterprise System Functionality1091 Words   |  5 Pagesnumerous processes of business, information flows and data analytics in numerous complex organizations. ES are generally packaged enterprise application software (PEAS) systems (Wikipedia, 2013). They can also be defined as, custom developed systems which are developed to assist in a specific organization need (Wikipedia, 2013). Types of Enterprise Systems are as follows: †¢ enterprise resources planning systems, †¢ enterprise planning systems, and †¢ Customer relationship management software. ThereRead MoreEssay about The Parthenon: The Epitome of Greek Culture 1136 Words   |  5 PagesParthenon shows a genius that can only be claimed by the Greeks. First, the Parthenon frieze is an example of how unique the Parthenon is to the Greeks. The frieze is â€Å"[t]he most characteristic feature in the architecture and decoration of the temple† (Wikipedia contributors). It was made to â€Å". . . depict the people of Athens in two processions that begin at the southwest corner and parade in opposite directions until they converge . . . at the east end of the Parthenon† (â€Å"Greek Architecture†). The procession

The Internet Is the Most Wonderful Thing for Our Life - to What Extent Do You Agree or Disagree with This Statement - Free Essay Example

Sample details Pages: 2 Words: 489 Downloads: 8 Date added: 2017/09/14 Category Advertising Essay Did you like this example? No one can deny the fact that the Internet is the most important invention ever. More and more people are gaining the ability to access the Internet by a home computer and a modem. It also plays a strong role in business, education, and entertainment. Some even said that the Internet is making the world smaller as it brings people together. But have you ever wondered whether the Internet can be the most wonderful thing of our life or not? The main advantage of the Internet is that communication is made very easy. Two people on opposite sides of the world can communicate with each other via such things as video conferences or online chat. There are many â€Å"chat rooms† on the web that can be accessed to meet new people, make new friends or stay in touch with your old friends and families. This would save money as none of us has to take flights to other countries or make long phone calls. But the most popular good point about the Internet is that it provides e-mail. By a touch of a button, you can send and receive instant electronic emails. Don’t waste time! Our writers will create an original "The Internet Is the Most Wonderful Thing for Our Life to What Extent Do You Agree or Disagree with This Statement?" essay for you Create order This definitely has its advantages over postal mail since it’s totally free and the senders can save a lot of time. We can also send our letters or invitations to multiple recipients instead of writing them for hundreds of times. Moreover, the Internet is a virtual treasure which provides us with unlimited source of information. You can find anything that is in your interest simply by logging on to Internet search pages like Google or VinaSeek. Students can also study English as well as other subjects online, which is quite effective and economical. On the Internet, there are also many online stores that can be used to look for products as well as buy them using your credit card. This makes life very easy for disabled people or people with busy lives who have no time to go shopping. Moreover, many good software, great music, movies can be downloaded for free. However, for every plus there is a minus. The Internet does hold a lot of information but not all of them should be viewed publicly. What would happen if someone’s full name, occupation, address could easily be tracked down by another. Furthermore, the Internet provides access not only to huge databases of information, useful software†¦ but also to some sites of sexual programs, violent videos†¦ Parents can’t always be there when their children get access to the Internet. Besides, most parents are not as computer-literate as their children. Another thing that annoys us everyday is spam emails. Some of them are used for advertisement but others serve no purpose. Hackers can send electronic viruses which usually clog up the entire system or crash the Internet. In conclusion, the Internet is only useful when you know to use it properly and for good purposes.

Greed Essay †Enron and Northern Rock Corporate Collapse Free Essays

string(65) " taking advantage of the lack of information that he cultivated\." Abstract The spectacular collapse of both Enron and Northern Rock illustrate two very distinct methods of errant policy that deserve continual study.This essay examines and compares the roles of both companies during their respective period of failure in order to determine the fundamental causes that led each of these companies to ruin. The evidence presented outlines a pattern of greed, ambition and poor policy that combined to drive the entities to failure. We will write a custom essay sample on Greed Essay – Enron and Northern Rock Corporate Collapse or any similar topic only for you Order Now This research will be of value to any person looking into corporate collapse. 1 Introduction Failure in business comes in many forms making continual evaluation beneficial. The cases of the spectacular collapse of both Enron and Northern Rock illustrate two very distinct methods of errant policy. This essay examines and compares the roles of both companies during this period of failure in order to determine the fundamental causes that led each of these companies to ruin. With a focus on the role of fraud, market value accounting, fraud and creative accounting this study will identify and evaluate the underlying causes that have been credited with defining business risk in the modern age. In the end, this essay examines and evaluates the fundamental factors associated with the collapse of Enron and Northern Rock with the stated goal of determining the best methods of avoiding such a scenario in the future. 2 Corporate Collapse 2.1 Overview Enron was once considered a blue chip investment with the inherent capacity to bolster any portfolio during the 1990’s until the collapse of 2001 (Khan, 2011). Once regarded as a premier investment, Enron became associated with a wide range of questionable accounting practice, fraud and insider trading during their term of operations. Over the course of 1990’s, Enron was cited and held up as a pillar of innovation and performance with many institutions attempting to emulate their professed success (Arnold and Lange, 2004). This early idolization of the rising company seems to have increased overall investor interest and expectation. With a platform based on gas and electricity and a long list of associated enterprises including online and investment services utilized by nearly every other energy entity of the period, Enron was the acknowledged leader in the international energy industry (Solomon and Solomon, 2004). With a broad based system of investors, there was subst antial fallout when the final collapse of the company was announced in 2001, with many in the industry decrying the lack of oversight amid the opportunity for fraud (Khan, 2011). The rise and fall of Enron, even on basic level is a reflection of a company’s ability to build and play upon investors’ expectations, which indicates a willingness on the part of the investors to risk their money in a questionable investment. Northern Rock was once considered a leading voice in the UK banking industry (Marshall et al, 2012). Created as a result of a merger between the North East Building Society and the Northern counties Permanent Building Society and the Rock Building Society, the Northern Rock Building Society was in an ideal position to create and further their own business interests. A key area of concern for investors was the fact that Northern Rock derived its capital from depositors until the deregulation efforts of the 1980’s (Marshall et al, 2012). With the relaxation of oversight, it became possible for entities such as Northern Rock to consider and implement alternate solutions for revenue increase that included heavy investment in the stock market and mortgage industry. Complementing the perception of leadership and dedication to the market were statistics that cited Northern Rock as one of the leading mortgage lenders during the period of the early 2000’s (Mclean and Elkind, 200 3). With a wish to capitalize as much as possible on the conditions of the growing market, which included the American mortgage market prior to 2008, Northern Rock leadership opted to invest heavily in the subprime market that generated so much profit during this period (Dawley et al, 2012). This argument suggests that the old industry region that was home to the company’s operations had a direct impact on the initial success and eventual failure of the Ban. This initial overview demonstrates that there was a real drive to produce revenue on the part of both of these companies, which in turn fuelled their need to succeed at any cost. In both cases, Enron and Northern Rock began with a legitimate business foundation, yet desired a continual increase in power and revenue which led to poor decisions and policy implementation. In a very real way, this brief illustration suggests that the success factor prompted these companies to act in the selfish and rash manner that brought about their downfall. 2.2 Companies 2.2.1 Enron The manner in which leadership creates, endorses and implements a company policy is a critical component to any entities day to day operations (O’Connell, 2004). In this case Enron leadership including Ken Lay, Jeffrey Skilling and Andy Fastow were primarily credited with first leading the company to incredible heights, and then engineering the massive failure due to their own incredible greed. Perhaps a leading indicator of the manner of leadership Ken Lay found appealing lay in his continual support of the oil trading company headed by Borget that was deemed acceptable as long as there was a profit, regardless of method (Swartz and Watkins, 2003). Organizational culture built on greed and corruption will continue to breed these same elements throughout any organization (Solomon et al, 2004). In this case Enron leadership’s goal of creating a nature gas stock exchange was driven by the desire to increase market share and revenue. In the beginning this form of innovatio n and aggressive marketing were deemed acceptable, but with subsequent discoveries of accounts including M. Yass, or My ass, created by Borget there was an acknowledgement of corruption (Fox, 2003). Despite Enron initially endorsing Borget and his practices as the scope of the losses mounted, Ken Lay actively denied any wrong doing, taking advantage of the lack of information that he cultivated. You read "Greed Essay – Enron and Northern Rock Corporate Collapse" in category "Essay examples" The lack of any serious form of financial oversight allowed Enron to create questionable forms of accounting and bookkeeping that extended their perception of propriety (Solomon, 2004). During deregulation effort of the late twentieth century, there was serious contention on the part of the business community that there was a need to reduce regulation in order to benefit the consumer. Leadership at Enron eagerly campaigned on the notion that deregulation would actively increase the capacity for the worker (Swartz et al, 2003). Blaming regulation for higher electricity the lobbyists were largely successful in their drive to remove any meaningful oversight in the industry. This push included a state by state approach that allowed Enron to utilize their regional positions to great advantage, thereby ensuring a smoother experience (Boje et al, 2004). Skilling created concept of an asset lite strategy, or not actually owning the assets, simply bundling and selling the energy, which in turn provided Enron with a potential method to drastically increase revenue with little to no paper trail (Solomon et al, 2014). The summer of 1998 witnessed a bonanza for Enron as there was a perception of volatility that enabled them to drastically capitalize on the market, leading to the perception that Skilling was a genius (Swartz et al, 2003). During this period following deregulation many of the Enron’s greatest profits were made by employees finding loopholes and exploiting these accounting or business practices to the utmost in order to increase revenue (Arnold and Lange, 2005). Again, this policy of attempting to end run regulation only promotes the false ideal that the company or its employees was smarter than the system. Enron has been credited with employing many questionable accounting techniques during their period of operation in order to bolster expectations (Gordon, 2002). This drive to provide a continuous profit for the company led the leadership to adopt accounting practices that did more to obstruct the revelation of negative data in order to maintain profits. A combination of being at the right place in the form of evolving deregulation and belonging to a culture of greed and corruption created the atmosphere that prompted these increasingly poor accounting practices (Macey, 2003). At the heart of Enron’s trouble rests a lack of strong corporate governance and an increasing disregard for public regulation and investor welfare (Vinten, 2002). Beginning with methods that merely bent the rules, the accounting practices at Enron had to become larger in order to account for the burgeoning debt that was being created (Parker, 2005). This form of creative bookkeeping suggests that there was a strong knowledge that operations at the company were not only limited in scope, but there was a need to make as much money as possible at any cost. This form of accounting was illustrated in the Mark to Market accounting expansion that served to misinform investors on accurate valuations, thereby increasing Enron’s value (Shelly, 2011). While essentially legal, the stretching and reinterpretation of the rules allowed Enron to create a wide margin of profit on paper. Further, the use of limited partnership and outside parties increased the level of secrecy and uncert ainty that surrounded every Enron valuation process including the Credit Default Swaps and Collateralised Debt Obligations (Swartz et al, 2010). These measures became necessary in order to provide the company with the means to maintain expectations, bonuses and pensions. From the outset, Enron was out to make money (Jennings, 2002). Each innovation was aimed at delivering the most revenue to the leadership, not the investors. Each decision and example of culture illustrates the greed and ambition of those behind the Enron debacle. In the accounting profession a fair presentation is regarded as an accurate representation of a working operation, creative accounting is identified as flexible practice that best serves the interests of the clients, with fraudulent accounting made up of those that blatantly step outside the law (Buckley, 2011). Enron has displayed an initial fair value accounting method that degenerated into a fraudulent accounting method with evidence that paints a portrait of unrestrained greed, propped up by poor regulation and aided by tacit indulgence of success. There is a clear need to conduct ethical business in order to sustain opportunities (Gill, 2009). This was does not seem to have happened in the case of Enron. This evidence suggests that no matter how Enron had attempted to compensate for poor practice, there could have been no other plausible outcome than failure. 2.2.2 Northern Rock Initially specialising in residential and commercial mortgages Northern Rock quickly became an industry frontrunner under the leadership of Adam Applegarth in 2001(Marshall et al, 2012). This form of leadership actively profited from the prior methods of operation, utilizing the past profit to invest in the present stock market, primarily the growing sector mortgage securities. Linsley and Slack (2013) argue that prior to 2001 Northern Rock projected a ethic of care, which in turn was cited for the intense feelings of betrayal following the collapse of the Bank. There was a sense that leadership of the Bank was overly ambitious in their efforts to capitalize on their existing assets by putting all of the previous savings at risk (Marshall et al, 2012). This suggests that the clientele of Northern Rock expected their leadership to take greater care and substantially less risk. Three primary points including Northern Rocks previous existence as a building society, the local or regional nature of the bank and the appearance of the Northern Rock Foundation bolstered the perception of a caring institution that was out to serve the populace (Linsley, 2013). With the change in policy brought about by a new leader, there was a palpable sense of anger and disillusionment with both Northern Rock and the direction of their investments. It very much seems as if was this effort from the previous eras, the caring and attentive attitude that served to amplify the negativity as the bank began to crumble under the weight of poor leadership and management. With the onset of the subprime collapse in the United States and the massive international recession that followed, it became impossible for Northern Rock to meet its financial obligations, which in turn prompted the failure of the bank (Linsley et al, 2013). The innovative nature of the investment pattern such as the ‘Together’ investment scenario set out by Northern Rock was a stark departure from the mutualisation process of previous eras (Nesvetailova and Palan, 2013). With the ambitious investment goals set out by Applegarth, it became necessary for the bank to move from the 75% per cent income from depositors to a much more modest 25% with the remaining balance being accounted for by investment and loans (Nesvetailova, 2013). As reflected by consumer discontent with the policy decision, the entire process became disliked and heavily blamed for the eventual run on the bank. The new pattern of investment required Northern Rock to pursue securitization in a fashion that created special purpose vehicles in order to allow these securities to become liquid and thereby tradable (Deegan and Unerman, 2011). This process allowed Northern Rock to obscure their accurate worth by essentially hiding these accounts offshore (Scott, 20 08). With an accounting practice that was creative and innovative at the time, Northern Rock utilized this method in order to expand their projected revenues, thereby further enhancing their operations. In order to continue lending at the bank level, mortgages could be sold, or further funds borrowed on the mortgage securities, which in turn kept Northern Rock liquid initially (Gaffikin, 2008). This culture of greed no matter the cost fuelled the leadership drive to not only continue this practice, but expand it to incorporate up to 50 per cent of the Northern Rock operational platform (Deegan et al, 2011). Depending too heavily on any volatile market has the potential to put any operation at risk at any time (Domhoff, 2013). This evidence suggests that Northern Rock was substantially impacted by the subprime mortgage collapse and the inability to borrow money from the lenders. With a business model that was directly dependant on the interbank lending process, this sudden halt of funding was a severe and crippling blow, only enhanced by the need for the bank to have these funds on hand in order to shore up fading public support. The perception of dismay and lack of trust only increased as Northern Rock found itself undercut by rivals with better loan rates (Deegan et al, 2011). With no ready pool of funding available and no one to purchase the securities, some of which were frozen due to questionable value, the internal situation deteriorated to the point of collapse nearly overnight. Regulation and lack of effective constraints in the financial process has been cited as an element of the Northern Rock collapse (Nesvetailova, 2013). There was a sustained feeling that the explosive pattern of growth quickly overwhelmed any regulation effort, which in turn led to unsatisfactory testing and performance assessments. The caring culture that once benefited operations at Northern Rock was transformed to increased discontent with the announcement of the government bailout, which in turn fuelled the run on the bank (Deegan, et al, 2011). This evidence suggests that it was the very elements of safe investment that had given Northern Rock the opportunity for investment initially and that the prudent course of action would have been to maintain a pattern of considerate investment rather than an all-out bid for industry leadership. With the nationalization of the Northern Rock entity, the government became the only remaining investor, shouldering the substantial loss that had once been a thriving multi-generational company (Deegan et al, 2011). 3 Conclusion Both Enron and Northern Rock exhibited similar and distinctly different traits as this study as illustrated. Each of the companies possessed leadership that was very focused on success and revenue. This culture of greed and ambition served to initially propel both companies into positions of leadership which was demonstrated by their drastic increase in value and recognition during the early phases. While both companies began with fair trade accounting methods, there were driving forces behind each entities operation after that period. Enron began to employ outright fraud in their accounting practices, in some cases going so far as to completely create fictional assets in order to maintain viability. In contrast Northern Rock employed creative accounting methods to legally utilize their existing assets to invest in the subprime mortgage market. While Northern Rocks leadership made poor choices, there was no element of blatant fraud as perpetrated by Enron. There was a distinct organisational culture gap between Enron and Northern Rock. The ethic of care environment enacted a perception of interest in the consumers of Northern Rock aided the long term business efforts and sustained operations over generations. Enron was focused on profit and the means to increase profit from the point of inception, creating management techniques that encouraged a liberal interpretation of any regulation, placing revenue generation above the need to present a high level of honesty during operation. A similarity that binds both companies together was the leadership intention to use the open market to increase their net assets. Further, there was a directed action by both management institutions to hide the debt from the consumer and investors in order to prop up their image and brand. Once considered pioneering, creative and innovative the combination of deregulation, massive growth and complex rules provided a wide range of opportunities that these compa nies chose to exploit for their own gain. Each of these entities found itself in the position that required them to borrow money in order to meet expectations. Lacking the means to borrow money was the death knell for both of these enterprises. Northern Rock found itself caught in the subprime mortgage collapse and Enron found itself the focus of scrutiny concerning their assets and true valuation. In the end both Enron and Northern Rock exhibited poor policy decision as well as experiencing bad luck. While there is no guarantee in the business world, large scale deception and fraud will eventually come back to roost. It was the utilization of questionable practice, greed and ambition that served to derail these companies, teaching us all that honesty is indeed the best policy. 4 References Arnold, B. and De Lange, P. 2004. Enron: an examination of agency problems. Critical Perspectives on Accounting, 15 (6), pp. 751–765. Boje, D. M., Rosile, G. A., Durant, R. A. and Luhman, J. T. 2004. Enron spectacles: A critical dramaturgical analysis. Organization Studies, 25 (5), pp. 751–774. Buckley, A. 2011. Financial crisis. Harlow, England: Financial Times Prentice Hall. Dawley, S., Marshall, N., Pike, A., Pollard, J. and Tomaney, J. 2012. Continuity and evolution in an old industrial region: the labour market dynamics of the rise and fall of Northern Rock. Regional Studies, (ahead-of-print), pp. 1–19. Deegan, C. and Unerman, J. 2011. Financial Accounting Theory: European Edition, 2nd Edition, McGraw Hill. New York, NY. Domhoff, G. W. 2013. The myth of liberal ascendancy. Boulder: Paradigm Publishers. Fox, L. 2003. Enron. Hoboken, N.J.: Wiley. Gaffikin, M. 2008. Accounting Theory: Research, Regulation and Accounting Practice, Pearson Education. New York, NY. Gill, M. 2009, Accountant’s Truth: Knowledge and Ethics in the Financial World, Oxford, Oxford University Press. 1(1). Gordon, J. N. 2002. What Enron means for the management and control of the modern business corporation: some initial reflections. The University of Chicago Law Review, 1(1) pp. 1233–1250. Gordon, R. W. 2002. New Role for Lawyers: The Corporate Counselor after Enron, A. Conn. L. Rev., 35 p. 1185. Jennings, M. M. 2002. Primer on Enron: Lessons from a Perfect Storm of Financial Reporting, Corporate Governance and Ethical Culture Failures, A. Cal. WL Rev., 39 p. 163. Khan, M. A. 2011. The Reasons Behind a Corporate Collapse: A Case Study of Enron.Available at SSRN 1923277. Linsley, P. M. and Slack, R. E. 2013. Crisis management and an ethic of care: the case of Northern Rock Bank. Journal of business ethics, 113 (2), pp. 285–295. Macey, J. R. 2003. Efficient capital markets, corporate disclosure, and Enron. Cornell L. Rev., 89 p. 394. Marshall, J., Pike, A., Pollard, J. S., Tomaney, J., Dawley, S. and Gray, J. 2012. Placing the run on Northern Rock. Journal of Economic Geography, 12 (1), pp. 157–181. Mclean, B. and Elkind, P. 2003. The smartest guys in the room. New York: Portfolio. Nesvetailova, A. and Palan, R. 2013. Minsky in the Shadows Securitization, Ponzi Finance, and the Crisis of Northern Rock. Review of Radical Political Economics, 45 (3), pp. 349–368. O’Connell, B. T. 2004. Enron. Con:â€Å"He that filches from me my good name†¦ makes me poor indeed†. Critical Perspectives on Accounting, 15 (6), pp. 733–749. Parker, L. D. 2005. Corporate governance crisis down under: post-Enron accounting education and research inertia. European Accounting Review, 14 (2), pp. 383–394. Richardson, S. 2011. From the Invisible Hand to CEO Speak: Enron and a Rhetoric of Corporate Collapse. Russell, D. 2013. Critical Studies on Corporate Responsibility, Governance and Sustainability, Vol. 3Business and Sustainability: Concepts Strategies and Changes. International Journal of Law and Management, 55 (1), pp. 74–76. Scott, W. R. 2008 Financial Accounting Theory, 5th Edition, FT Prentice Hall. Solomon, J. and Solomon, A. 2004. Corporate governance and accountability. New York: John Wiley. Swartz, M. and Watkins, S. 2003. Power failure. New York: Doubleday. Vinten, G. 2002. The corporate governance lessons of Enron. Corporate Governance, 2 (4), pp. 4–9. How to cite Greed Essay – Enron and Northern Rock Corporate Collapse, Essay examples

Ring of Time Essay Example For Students

Ring of Time Essay In E.B. Whites The Ring of Time, the author gives a narrative account of his trip to a circus rehearsal where he describes a fascinating scene of a young girl practicing a horse act for an upcoming show. As a writer, he feels it is his obligation to record the events he is witnessing, and convey this to his readers without leaving anything out. However difficult this may be, the beautiful and fleeting moment is something he wishes to ultimately capture. When he arrives on the scene, White senses something magical about the surroundings of this circus as it undergoes a rehearsal, but he is primarily fixed on a young woman who passes by him. The young cleverly proportioned, deeply browned by the sun, dusty, eager, and almost naked girl is the one thing which he wishes to focus on. After watching her magnificently ride around the one of the circus rehearsal rings, the author begins see a connection between the girl and her act. This brings about the authors central idea of a cyclical vi ew of time. White suggests that time is circular, and that is goes round and round repeating itself. The images of rings and circles throughout the first few paragraphs support this. He describes the girls gaze as circular, and time itself began running in circles as she took her horse around the circus ring. However, time itself is a constantly changing quantity with everything around it changing also. White realizes this and states, She will never be this beautiful again. This young woman and her motions around the ring mesmerize the author. He knows all of this is an illusion though, and the girl will eventually lose her beauty and grace as she grows older. White, however, wants the reader to see the two views of time: both circular and linear. The scene he is witnessing may never happen again, yet for that moment, time seems to stop and run into itself. If one looks at the linear idea of time, the girl will and eventually lose all her agility and beauty, but White sees that in a larger conte xt nothing at all will change. The girl will move on and her daughter eventually will take the reins of the horse and control of center ring, keeping the cycle going. The circus will always stay together while its performers will age around it. Another theme portrayed in the story is that of the circus being a microcosm of the world. White states that, Out of its wild disorder comes order, and this is how society can be viewed. The rehearsal, to the author, is the most magical and complex part of the circus. Before the bright lights are turned on and the real show gets started, the confusion and development of the upcoming event (before the polished product) is what the circus is all about. Life, as a result, can be seen as a parallel to this. In what appears to be a world of chaos, is actually a society of simplicity and order.