Global Financial Crisis Essay

The Global Financial Crisis can be studied from many different perspectives. Most of the consequences are already being analyzed, and even though new events may still take place; these consequences have impacted, and if not yet detected, they will impact our Society, our Culture, old and new technologies, the commercial and industrial sector and overall our value systems and ethical standards. Global warming is the major issue that would impact Technology, Society and Culture and have an important effect upon our ethics. Most of us expected a great reaction from the biggest economy in the world because the level of consciousness about global warming, had motivated many politicians to act upon it, the financial sector was already in a position to invest in it, and many industrial sectors had made the decision to participate in what could have been called â€Å"The Green Adventure†. â€Å"It took a great war, and all the military industries that fed the carnage, to bring America out of the Depression. But to a surprising degree, the world economy has been riding the strength of its hottest sectors ever since. By the 1990s, it was the rise of the Internet and the network economy, which collapsed in the dotcom bubble and gave way to housing and the financing that paid for it. In each of these recent cases it was the market that discovered and promoted a new engine for growth—creating millions of jobs and trillions in profits worldwide. Between 1996 and 2000, the technology sector created 1. 6 million new jobs, according to Moody’s Economy. com—roughly 14 percent of new U. S. job growth. In this decade, the financial sector accounted for a lion’s share of U. S. corporate profit, while housing accounted for a staggering 40 percent of new U. S. job growth. Now, those two stalled drivers are leading producers of unemployment: Goldman Sachs, the royal house of finance, announced a 10 percent staff cut last week. The world, simply put, needs a new economic driver, a new hot growth industry. † A lot of funds are being invested in the green technology activities like in its research and development, even though the oil prices are reducing and the economic crisis seems to take longer than expected. Whether such investment measures will yield the anticipated success is not a subject that can be experimentally tested. A number of business organizations have been reported to have made huge investments in the green technology, even though there seems to be minimal improvements. As the current economic crisis demand numerous investments to rescue the economy, concerns are being raised on the resources which are being dedicated at rescuing the environment. These concerns are raised while considering the fact that the continued economic crisis could divert the attention of the organizations and the governments in sustaining effective green technologies. Some of the efforts which are being made by the business organizations and the governments include the trade in the carbon market, which seeks to reduce the carbon emissions. On the other hand, the governments are offering stimulus packages for offering support to the financial institutions, which have promoted the carbon trading investments. In a number of occasions, the policies which seek to achieve a sustainable environment seem to take a back seat, when the global economy experiences financial difficulties. International organizations like the United Nations are devising strategies, which seek to reduce the level of carbon emissions through the utilization of the renewable sources of energy. This research paper will make an analysis of the green technologies and its impact on the global economy. A number of benefits of the green technology has been analyzed, besides the measures that the various governments and organizations are taking in reacting to sustain the environment. Going green and fossil fuel In the 1990’s fossil fuels accounted for 85% of the U. S energy use, and today fossil fuels are still the prime movers of industrial life. (Griffin, PG. 2) Although fossil fuels have contributed to global warming the U. S has continued to use it, because of its cheap availability; however, in the recent years it has become scarcer and more expensive. (Griffin, PG. 2) In the 1990’s the U. S oil supply climbed to 17 million barrels a day; however with domestic oil declining the U. S has opted to now import roughly 50% of its crude oil & petroleum. (Griffin, PG. 2) As the war continues between the U. S and Iraq the price of oil will continue to rise, and the U. S may need to look into alternative energy. Although the U. S has always had the spending power to burn through resources such as oil and fossil fuels; the current economic crisis is an opportunity for the U. S to become more green and learn that alternative energy can be more affordable in the long run and definitely safer on our environment. Every economic crisis brings opportunities for the U. S to get out of their comfort zone and really do something to move the U. S forward. Alternative energy will be more affordable and will help during the economic crisis. The U. S’s dependency on oil imports has been a concern for years, and now with the economy in bad shape the U. S can take the opportunity to look into moving towards alternative energy. Unlike oil & fossil fuels solar energy, wind energy, and hydropower energy are reusable and will not bring an issue of scarceness. One of the issues with our current use of oils & fossil fuels is that they have become scarce and therefore, a concern arises with the U. S dependency. Reusable energy will eliminate that threat and the cost benefits in the long run will improve. We do not need to buy sun power to use solar energy, nor do we need to buy the air to get wind energy. The cost to switch to these new systems may be expensive to start, but the maintenance will be more cost efficient than importing oil at the amounts we do and at the current cost. (FT Business, PG. 1) Wind is a favored sub-sector in the BlackRock portfolio because it is affordable, low carbon, and scalable power generation technology of choice. (FT Business, PG. 1) Wind accounts for the largest share of new generation capacity installed in the US and Europe in 2007, respectively at 30% and 40%. (FT Business, PG. 1) Ed Guinness co-manages Guinness Asset Management’s Dublin-domiciled says it is not only the cost of fuel that is driving up electricity prices, but also increases in the raw materials needed for construction. (FT Business, PG. 1) He also stated that prices of oil, gas and coal are all increasing tremendously and so are the construction costs of power plants, stating it now costs twice as much to make electricity from new-build gas turbines than it did one year ago making wind and solar energy highly competitive. (FT Business, PG. 1) With that said it is now in the times of economic struggles that America should make change that will be benefited in the years to come. Some manufacturers, such as, agriculture, food processing, metal refining, paper manufacturing and the chemical industry have switched to alternative energy to join the â€Å"Green† campaign that has been moving through the world for years. (Katz, PG. 16) The main alternative energy the manufacturing applications have used is electricity and thermal energy. (Katz, PG. 16) James Lee, an associate professor in the Golisano Institute for Sustainability at the Rochester Institute of Technology, stated that manufacturing companies are working in both of these areas to reduce consumption and expand the use of alternatives to fossil fuel. Many manufacturers are investing in combined heat and power (CHP) systems that produce both electricity and heat for their manufacturing processes. CHP systems increase energy efficiency by making better use of the energy. Using a CHP system also enables companies to produce electricity directly from alternative fuel sources such as biofuels, hydrogen and solid municipal waste. (Katz, PG. 16) Unlike Solar and wind energy, thermal energy is not really a natural resource, but still more cost efficient and less risky to be dependent on than oil & fossil fuels.