The Economic Costs of Inflation

The Economic Costs of Inflation In general, people seem to know that inflation is often not a good thing in an economy. This makes sense, to some degree- inflation refers to rising prices, and rising prices are typically viewed as a bad thing. Technically speaking, however, increases in the aggregate price level need not be particularly problematic if prices of different goods and services rise uniformly, if wages rise in tandem with the price increases, and if nominal interest rates adjust in response to changes in inflation. In other words, inflation need not reduce the real purchasing power of consumers. There are, however, costs of inflation that are relevant from an economic perspective and cannot be easily avoided. Menu Costs When prices are constant over long periods of time, firms benefit in that they dont need to worry about changing the prices for their output. When prices change over time, on the other hand, firms would ideally like to change their prices in order to keep pace with the general trends in prices, since this would be the profit-maximizing strategy. Unfortunately, changing prices is generally not costless, since changing prices requires printing new menus, relabeling items, and so on. Firms have to decide whether to operate at a price that is not profit-maximizing or incur the menu costs involved in changing prices. Either way, firms bear a very real cost of inflation. Shoeleather Costs Whereas firms are the ones who directly incur menu costs, shoe leather costs directly impact all holders of currency. When inflation is present, there is a real cost to holding cash (or holding assets in non-interest bearing deposit accounts), since the cash wont buy as much tomorrow as it could today. Therefore, citizens have an incentive to keep as little cash on hand as possible, which means that they have to go to the ATM or otherwise transfer money on a very frequent basis. The term shoe leather costs refer to the figurative cost of replacing shoes more often due to the increase in the number of trips to the bank, but shoe leather costs are a very real phenomenon. Shoeleather costs are not a serious issue in economies with relatively low inflation, but they become very relevant in economies that experience hyperinflation. In these situations, citizens generally prefer to keep their assets as foreign rather than local currency, which also consumes unnecessary time and effort. Misallocation of Resources When inflation occurs and prices of different goods and services rise at different rates, some goods and services become cheaper or more expensive in a relative sense. These relative price distortions, in turn, affect the allocation of resources toward different goods and services in a way that would not happen if relative prices remained stable. Wealth Redistribution Unexpected inflation can serve to redistribute wealth in an economy because not all investments and debt are indexed to inflation. Higher than expected inflation makes the value of debt lower in real terms, but it also makes the real returns on assets lower. Therefore, unexpected inflation serves to hurt investors and benefit those who have a lot of debt. This is likely not an incentive that policymakers want to create in an economy, so it can be viewed as another cot of inflation. Tax Distortions In the United States, there are many taxes that do not automatically adjust for inflation. For example, capital gains taxes are calculated based on the absolute increase in the value of an asset, not on the inflation-adjusted value increase. Therefore, the effective tax rate on capital gains when inflation is present may be much higher than the stated nominal rate. Similarly, inflation increases the effective tax rate paid on interest income. General Inconvenience Even if prices and wages are flexible enough to adjust well for inflation, inflation still makes comparisons of monetary quantities across years more difficult than they could be. Given that people and companies would like to fully understand how their wages, assets, and debt evolve over time, the fact that inflation makes it more difficult to do so can be viewed as yet another cost of inflation.

The R Document essays

The R Document essays The book I chose to read was The R Document by Irving Wallace. It was filled with anticipation and kept you thinking the whole time. The main character is Christopher Collins and he is the new Attorney General. He is a very ambitious and honest man who fights with the director of the FBI over the proposed 35th Amendment to the Constitution. The 35th Amendment was controversial because there was a secret plot behind it all and it was meant for evil. Christopher spends the whole time trying to ratify this bill because of its evil. He succeeds in the end and shows to everyone how the government could expose such abuse of high power. In a small summary of the conspiracy in The R Document, they wanted to destroy the Bill of Rights in an attempt by the FBI to take over the country and end up controlling it. Collins begins to realize the evil in the government while laying on his deathbed and has to search for The R Document which shows the plan for the nations future. He had to hunt for this document while racing against time before the FBI took over. He finds out that the FBI was blackmailing and terrorizing a lot of important government leaders. The man behind it all was Vernon T. Tynan. He was the director of the FBI and the one that wanted to control the country. Tynan is finally defeated at the end of the book and gets what he deserves. This book would made a good movie because it shows how the government could abuse its power in the high positions. We all hope as citizens that this will never happen to a country like the United States. Sometimes it is scary to think because the conspiracy was surprising and intriguing. It makes you think if this could really happen to the government nowadays. ...

Is There Still a Role for the Monarchy in Modern British Society Research Paper

Is There Still a Role for the Monarchy in Modern British Society - Research Paper Example Based on the evidence which is provided in this essay, it would seem that the general public view is that the monarchy is an outdated system of pageantry and ceremony which no longer has relevance in modern British society. In today’s closely-linked global community, nature by which certain ruling parties conduct political and foreign affairs seems to always be in the media spotlight. With the growth of international trade and with social access to multiple, global media mediums, the method by which international relationships are formed is always at the forefront of the social consciousness. One representative of BBC News cites how Australia views the British monarchy, citing the opinion of Senator Natasha Stott Despoja who states, â€Å"The monarchy is simply not relevant to modern Australia† (Grossman, 1999, p.2). This statement comes from a reputable political leader in Australia, a developed country with considerable influence in global trade and foreign relationships. This Senator’s opinion is based on the difficult history between Britain and Australia and the author believes that most Australian citizens are â€Å"unimpressed by the pageantry and tradition of the crown and resentful that it is a British face that stares out at them from their notes and coins† (Grossman, p.2). What is being suggested here is that the modern British monarchy still attempts to use their traditional links with Australia to justify routine criticism of how the country is managed and politically-operated. Clearly, in the view of Australians, the British monarchy is so obsessed with showiness and spectacle that it is unable to recognise the attempts of the Australian people to create their own international identity without any links to the crown.

Barking Wellfare Organisation Essay Example | Topics and Well Written Essays - 1500 words

Barking Wellfare Organisation - Essay Example Hence, it may not find ready applicability in all cases. Therefore, it has become necessary to consider the net present value (NPV) of projects using DCF method, known as discounted cash flow method. The main advantages of the DCF, is that a positive NPV, would indicate the fact that the project generates more cash inflows rather than resource outflows, used up for servicing of the project. It is, therefore, the discretion of the management to decide whether the project may be accepted and implemented after taking cognisance of all the related facts and figures. Financial analysis is important because they form the bedrock of strategic corporate decision making and creating value additions for shareholders and others who are having financial interests in the Company and its operations. Step 3: If the NPV results in a positive figure, the project may be accepted and if negative, it should be rejected. (Brigham, Eugene F. and Ehrhardt, Michael C. (2004): Financial Management Theory and Practice: Capital Budgeting: Capital Budgeting Decision Rules: 509) â€Å"The net present value method is a modern method of evaluating investment proposals .This method taken into consideration the time value of money and attempts to calculate the return on investment by introducing the factor of time element.† (Gupta & Sharma). In this case study, the NPV has been considered the best option available, since it recognises the time value of funds that are being injected into the project, and is best suitable since in this case, both the cash inflows from the sale of plants, are controlled by market forces, and also the outflows depend upon the use of assets at different points of time in the period of determination. In the first place, this Welfare Organisation has rehabilitated and made employable, the physically disabled people, to lead socially useful lives for themselves and their community settings.

Reflection Paper on Romance on a Global Stage, by Nicole Constable Essay

Reflection Paper on Romance on a Global Stage, by Nicole Constable - Essay Example There are more than 350 matrimonial and dating websites on the internet that match the profiles of men and women with people from all over the globe and romantic union clearly demonstrates the amalgamation of the global community. Nicole Constable has discussed this aspect of the society in her unique study and compiled it in her book titled â€Å"Romance on a global stage: Pen pals, virtual ethnography and mail-order marriage’, where the substance of her prose focuses on real individuals in a romantic or matrimonial alliance with people in a different country and culture. (Constable, 2003, p. 198-208) The basic premise of the relationship centers on men from the west and eastern women; primarily Filipina or Chinese women. Constables work is not only based on theoretical evidences but also anecdotal that gives the readers a general insight into the matter. Marriage is one the most universal concepts and as mentioned earlier, as the internet is becoming more and more synonymou s with the world’s population, online relationships and mail-order marriages have become extremely common and as a result the differences between the value system between people belonging to various cultural backgrounds have become even more pronounced; however, the values have undergone a series of change in recent, as a result the global community has become more uniform. ... Online dating and mail-order marriage is a long-distance relationship, and couples are able to stay in touch only through the internet, telephone or the conventional method of writing letters to each other. (Piper & Roces, 2003) Sometimes, individuals also pay visits to their significant others in their home country until they finally immigrate. The cost involved is very high and often the immigration procedure takes a really long while due to rampant bureaucracy and red-tapism that further prolongs the waiting period for the husbands and their wives. During this time there are a number of issues that the couples face and must resolve in order to ensure a prosperous future together. The Asian women, who have applied for an American visa, have to endure the biting remarks of their peers that their husbands might have found someone else. Often officials working at the immigration office or INS are governed by their prejudices and biases towards various cultures and races and in order t o vent out their anger, they delay the procedure and make the wait longer for couples. In case of Freddie, who had a Filipina wife was subjected to the anger and frustration brought about by the immigration procedure due to the fact that the immigration had a personal grudge against people from the Philippines and thought they did not deserve to be allowed in the country. Their grudges and anger towards the race is a deep-seated one and has it origin in the country’s history whereby, Philippines chose independence instead of becoming a pert of the United States. However, the current economic situation of the country cause the people to move to America in pursuit of greener pasture but before that they have to face the immigration

About My Childhood Essay Example for Free

About My Childhood Essay My name is Rouda Mohammed Al-Suaidi. I started kindergarten at the age of 4 in one of the finest schools in Abu Dhabi, which is Al-Worood Private School. I felt so scared on my first day of school and I didn’t go to school alone. My mother used to stay with me in class which made some of my classmates laugh at me. I remember they used to call me â€Å"A baby† and â€Å"Mommy’s little girl†. I used to cry a lot when they call me this. I spent my whole childhood there from kindergarten until High School. Throughout my childhood, I faced several successes and challenges. One of my successes in my childhood is being a famous basketball player in school. It first started at home, where I used to have a small basketball hall to practice and play with my family and friends especially in the weekends. At first, I didn’t have any idea on how to play this sport, but with the help of my precious father and uncle, they taught me all the ways and techniques to be an excellent basketball player. After being taught by my father and uncle, I started implementing the techniques and ways in mini basketball competitions, which were just amongst the students from grade 6-12. Although I was a fat, chubby young basketball player in school, my P.E teacher wanted me to compete with other international schools in Dubai and Sharjah. In the beginning, I was anxious and worried to compete with the schools in Dubai and Sharjah. Moreover, I was terrified because I had an image in my mind that the students their will make fun of me and laugh because I was fat. See more: Social process essay My P.E teacher motivated me and started training me after school time. After a lot of training and support from both my P.E teacher and family, I competed with the other schools and our school was ranked the 2nd best school in playing basketball. I was so happy about it but I wished to be ranked the first, but it never de-motivated me in practicing more and more. My father always told me: â€Å"be optimistic and never be pessimistic† and since then, I’ve been following my father’s quote until my recent life. Another success in my life was helping my cousin in raising two of her only children, a boy (Ali) and a girl (Sarah). At that time, Ali was just 18 months and Sarah was only 3 months. Ali and Sarah were everything to me. They were staying with me most of the time from the afternoon after I directly come back home from school till the evening around 10. However, in the weekends, they used to sleepover in our house. When I come back home, I used to eat lunch quickly and finish my school work quickly just to spend time with them. After I finished all my studies, I used to play with them, feed them lunch and dinner, bathe them at night before they leave in the weekdays and create a time for their naps during the day. The reason behind me helping my cousin in doing the mother duties is because my cousin was going through a process of having a divorce. After the divorce, my cousin went through depression and when I saw her like that, I offered to help her in her duties towards her children. So, she showed me how to do several things like: changing their diapers, play gently with them and taking turns while playing, share toys with each other, how to make them sleep, feed them and many other things. Although it is a very hard job raising a child, it didn’t prevent me from learning to be a successful mother in the future when I have my own children. Also, it didn’t stop my studies in sch ool. Moreover, it made me more focused in class and become a better student. Being a make-up artist is my third success through my childhood. In order to reach that success, I had to watch a lot of people putting make-up, ask them to teach me the techniques on how to put make-up and arrange the colors of the make-up when drawing the eyes, understanding and knowing the differences of all skin types for the make-up. Also, I used to watch people putting make up through T.V programs, watch the whole program and write down my questions on a piece of paper and send them an email in order to ask my questions and wait for their reply. Being a make-up artist was my childhood dream and after learning the basics and imitating it on the people, I became more confident and would want to expand my dream into opening my new make-up beauty center in the short term time. Although there were some successes in my childhood, I also faced many challenges. One of my greatest challenges was feeling embarrassed and lonely. During my childhood, I was always embarrassed of myself because I was very fat. The students in school used to make fun of me and call me different names: like â€Å"you look like pumba†, â€Å"you look like an old cow†, and many other names. I used to cry a lot to my mother when I go back home. Because I stood quiet and listen to students for years making fun of me, I turned to be a lonely person in my childhood. I used to be alone in the music lessons, art lessons and in the break times. I used to like walking alone, not playing with other children like all other normal children do. The reason behind this was my worry of the children making more fun of me because I was fat. This issue affected me a lot as a child but as I grew up, I started to be more sociable with the people. Another challenge is to know and understand the quality of time. As a child, I always wanted to play and have fun. I never organized my time and never valued the quality of time. I always wanted to lose time when I was assigned for any job for my mother or finish my school work very quickly and not caring about my work at all. All I wanted is time for playing only. As I grew older, I had many commitments to do in life like studying to become an excellent student and get high grades that would allow me to enroll in one of the best universities in Abu Dhabi, being with my family by visiting them, living my personal and social life and others. Unfortunately, I realized that I couldn’t mange my time at all and I was eager for help. My family was very supportive. They got me books on time management and I started reading those books, learning the techniques on how to organize your time. After a period of time, I started organizing my time, appreciate and value the quality of time. Finally, meeting my family’s expectation was also one of my challenges in life. The reason behind it is that parents expect a lot from their children. They expect to be successful, talented, hard working, enthusiastic and many other things. You wouldn’t want to embarrass yourself in front of your parents, because they always think that they’ve raised a perfect child whereas no one is perfect and everyone has negative and positive side effects. In my childhood, my parents expectations to me was being an excellent students, getting high grades in my exams and quizzes. I felt overwhelmed, pressured and exhausted because I didn’t want embarrass myself with my parents and I didn’t want them to get angry and mad at me for not at least trying to reach their expectation. I was trying very hard to meet their expectations in any of the issues and expectations and eventually I did.

Challenges To Singapores Education

Challenges To Singapores Education At the Teachers Day Rally last September, Prime Minister Goh Chok Tong outlined the challenges to our education system. A key imperative was National Education. Many Singaporeans, especially pupils and younger Singaporeans, knew little of our recent history. They did not know how we became an independent nation, how we triumphed against long odds, or how todays peaceful and prosperous Singapore came about. This ignorance will hinder our effort to develop a shared sense of nationhood. We will not acquire the right instincts to bond together as one nation, or maintain the will to survive and prosper in an uncertain world. For Singapore to thrive beyond the founder generation, we must systematically transmit these instincts and attitudes to succeeding cohorts. Through National Education, we must make these instincts and attitudes part of the cultural DNA which makes us Singaporeans. The Prime Minister set up a committee, chaired by Mr Lim Siong Guan, to study how to introduce National Education into our education system. The Committee has worked out a plan to do so. To take the next step forward, we need the full commitment of every teacher and principal. National Education is not just a book subject. It must appeal to both heart and mind. Unless you are personally convinced of its importance, committed to the cause and have the knowledge and passion to teach National Education competently and whole-heartedly, the plan will fail. Lessons from Other Countries Singaporeans are not unique in needing National Education. Other countries take National Education as a matter of course. Japan is a tightly-knit, cohesive and group-oriented society, with a long history and a strong sense of unique identity. Yet Japanese schools start early to teach pupils Japanese culture, values, history and geography, and even the politics and economics of Japan. As pupils get older, they also learn about the cultures and histories of other countries. In so doing, they understand even better what makes them uniquely Japanese. Japanese schools go to great lengths to instill group instincts and a sense that every student is an equal member of the group. They have strict regulations on school uniforms, school bags and shoes. Students are grouped into teams called hans. Members of each han play together and eat together. They take turns to perform specific responsibilities, whether it is the daily cleaning of school premises or serving lunch. Academically stronger students are expected to help their weaker friends. Those who do not are ostracised. Students organise the school sports day themselves. Competition is based mainly on team events; there are few or no individual events. All students participate, including those with disabilities. Japanese schools do all this not because they believe that all students are the same in every respect or have identical abilities. But they want every student to be equally valued as a member of the group, recognised for his strengths, and for what he can contribute to the group. And so it goes for Japanese society. In US schools, every child is taught the American heritage George Washington, the Declaration of Independence, the US Constitution, the Civil War, and the Civil Rights movement. Students take part in community service. Learning to be a responsible citizen begins young. It is a deliberate inculcating of American political and social values and ideals, to ensure the next generation grows up with these ideas deeply ingrained. It is a process of indoctrination like any other, no less so because the children are brought up to cherish American values of individual liberty. And it is so successful that many Americans are completely convinced that American values are universal values of mankind. If countries like Japan and the US, with long histories and deep roots, have found it essential to pass on national instincts systematically from generation to generation, all the more Singapore, a young country barely one generation old, must make a concerted effort to imbue the right values and instincts in the psyche of our young. Objectives Of National Education National Education aims to develop national cohesion, the instinct for survival and confidence in our future. We cannot offer our next generation any fixed formula for success, or even any set goals in life. They will face new circumstances and problems. They will need to think through and work out their own solutions. But we must equip them with the basic attitudes, values and instincts which make them Singaporeans. This is the common culture that will give them a shared perception of life, and draw them closer together as one people when confronted with serious problems. This will give them a well-founded faith in the countrys future. This is the DNA to be passed from one generation to the next. There are four elements to achieving this objective. First, we must foster in our young a sense of identity, pride and self-respect as Singaporeans. This will strengthen their emotional attachment to the nation, and their sense of rootedness. We are proud of our country. We are proud of what we have achieved together our economic progress, our clean and green environment, our open and clean system of government, our way of life. We are proud that each of us, in his or her own way, contributes to Singapores success. But success must not lead to hubris. We must never be over-bearing or arrogant, or look down on people from other countries. We do not have all the answers for ourselves, much less for other countries. But neither have we any reason to be ashamed to say, I am a Singaporean. In fact, quite the contrary. Second, our young must know the Singapore Story how Singapore succeeded against the odds to become a nation. National Education is not an abstract sermon on general principles of nationhood. It is to do with a special story, our story. It is the story of Singapore, how we came to be one nation. We did not start off with this goal, or even as one people. Nobody imagined this would be the outcome. As a British colony, from 1942 to 1945 for 3Â ½ years of the Japanese Occupation we suffered a traumatic experience of cruelty, brutality, hunger, and deprivation. We lived through the post-war years of Communist-inspired unrest and upheaval. We then joined with the Federation of Malaya to form Malaysia. Despite pressure and intimidation we stood firm in Malaysia against the communalists. The issue was a fundamental one: equal basic rights and opportunities for all Malaysian citizens under the Malaysian Constitution, and no special rights for anyone in the State of Singapore on the basis of race, language and religion, as was agreed in the State Constitution of Singapore. As a result we suddenly found ourselves out on our own as an independent country, with few means to make a living or defend ourselves. Yet we developed our economy, built up the SAF, educated and housed our people, got them to work together, and gradually became one nation. Year by year we transformed Singapore int o what it is today. Knowing this history is part of being a Singaporean. It is the back-drop which makes sense of our present. It shows what external dangers to watch out for, and where our domestic fault lines lie. It explains what we stand for and believe in, and why we think and act the way we do. It gives us confidence that even when the odds look daunting, with determination and effort we will prevail. Thirdly, our young must understand Singapores unique challenges, constraints and vulnerabilities, which make us different from other countries. Singapore is not as other countries. We will always be small, we will always worry about our water supply, we will always have to work harder and do better than other countries. That is the hand which geography and history have dealt us. Overall it is not a bad hand, nor have we played it badly. We have compensated for these constraints by being more resolute and resourceful, more efficient and productive, and quicker and nimbler than other countries which are better endowed and have larger margins for error. And we have been so successful that sometimes we forget that the underlying realities endure, and have not gone away. Singaporeans need to understand these realities, to work together and support the policies that are necessary to deal with them. Knowing our constraints should make us more determined to overcome them. It is no cause for despair. We overcame more severe difficulties in our first years of nationhood, with far fewer resources, and in more dire circumstances. We are much better placed to tackle them now. Finally, we must instill in our young the core values of our way of life, and the will to prevail, that ensure our continued success and well being. Our core values include the system of meritocracy which guarantees fair and full opportunities for all, multi-racial and multi-religious harmony, and honest and competent government working for the long-term interests of all Singaporeans. We often take these for granted, because things have been this way in Singapore for a long time. But not new citizens, who often come with fresh direct experience of very different societies. Pupils must learn to treasure and uphold these social and political values. If we ever lose them, Singapore will quickly become a very different place. Strategies We need to develop national instincts among pupils at all levels. National Education will begin in schools and continue in post-secondary and tertiary institutions. After ten to fifteen years of education, all students should know the facts about Singapore and feel attached to Singapore, their best home. Those likely to go on to play leadership roles later should at least have had some preliminary preparation for their responsibilities. We will achieve this through both the formal and informal curricula. Formal Curriculum We will introduce National Education content across the formal curriculum. We can do more of this in some subjects than others. The main subjects will be Social Studies and Civics and Moral Education (CME) at the primary level; History, Geography and CME at secondary level; and the General Paper and CME at the Junior Colleges. In addition, Literature and the languages can also be used. Subjects at Primary level In primary schools, we will start teaching Social Studies earlier -beginning from Primary 1 instead of Primary 4. Social Studies will complement Civics and Moral Education. CME will emphasise teaching of values and correct individual behaviour, while Social Studies will give pupils an understanding of Singapore society. Pupils must start early to learn about the society around them, to feel a sense of belonging to family, school and community, to befriend and accept pupils of all races, and to develop a simple, unabashed pride in Singapore. They recite the pledge, sing Majullah Singapura, and recognise our flag. Later they will learn the meaning of the crescent and five stars. But long before that, when they see the helicopter flying past with the state flag on National Day, they should sense that it is a very special occasion. Subjects at Secondary level At secondary level, students currently learn the history of our independence period only in Secondary 1. The O level History syllabus stops in 1963, which perversely omits the vital period leading to our independence. We will extend the O level History syllabus for Singapore to 1971. The period of Merger, Separation and the early years of independence will also be taught in Secondary 2 instead of Secondary 1, so that the students will be a little more mature, and appreciate better what was at stake. At the upper secondary level, we will develop a new Social Studies subject. It will cover issues central to Singapores survival and success our principles of governance, the strategies that have brought Singapore here, the role of key institutions like the SAF, HDB, CPF, EDB and NTUC, and our future challenges. It will use examples from other countries to explain what works and what fails, and derive lessons for Singapore. Subjects at the JC level In the junior colleges, students should start to learn what leadership involves, and to develop a commitment to serve society. Through the General Paper and Civics lessons, they must acquire the sense that they can shape their own future and, more important, that it is their responsibility to shape Singapores future. They must be able to think independently and rationally, and reach informed conclusions about national issues. MOE will take 3-4 years to implement the new syllabi. As the school curriculum is already heavy, we will make the changes without increasing the curriculum load. We want the new syllabi to give teachers more time, not less, to engage in creative ways to bring issues to life for their students. Informal Curriculum National Education is much more than learning facts. Knowing facts in itself will not develop the group spirit and emotional instincts of nation-hood among pupils. This will depend on the informal curriculum. Attitudes and values picked up through team ECAs and group activities, and the rituals of school life, will sink in deeper than anything learnt in the classroom. Each year, schools will also commemorate a few key events that mark defining moments of our history. These will include: Total Defence Day on the 15th of February, the anniversary of the surrender of Singapore to the Japanese in 1942, as a reminder of every citizens responsibility to defend Singapore. Racial Harmony Day on the 21st of July, marking the day in 1964 when racial riots broke out, to remind pupils of the importance and fragility of racial harmony. International Friendship Day to stress the importance of good relations with our neighbours, and to remind pupils that such good relations cannot be taken for granted. The actual date will vary from year to year, to mark such occasions like the end of the Second World War in the Pacific, the day Singapore joined the United Nations, or the end of Confrontation and the establishment of diplomatic relations with Indonesia. And finally, National Day on the 9th of August. Schools will arrange regular visits to national institutions and economic facilities, such as Parliament, SAFTI, water treatment works, the port, or the stock exchange. These visits will help to build pride and confidence among our students, and show them how Singapore has overcome our constraints through sheer will and ingenuity. Community service will strengthen social cohesion and civic responsibility among our young. At the lower primary level, we will encourage pupils to do community service within their own school taking care of the school grounds, keeping common areas clean. For the upper primary and secondary levels, a school may adopt an orphanage or old folks home, or take on long-term community projects like keeping a park or a residents corner clean. The Challenge of Teaching National Education I do not underestimate the difficulty you will have teaching National Education in schools. This is not just another school subject for pupils, or another duty for overworked teachers. We seek from pupils not just intellectual comprehension or accumulation of facts, but a personal commitment to Singapore, and an emotional bonding and identification with their fellow Singaporeans. To achieve this, you must yourselves feel passionately for the country, and understand instinctively our collective interests and what we stand for. Only then can you teach with conviction, instill pride and confidence in your students, and help them to acquire the right instincts. The Singapore Story is based on historical facts. We are not talking about an idealised legendary account or a founding myth, but of an accurate understanding of what happened in the past, and what this history means for us today. It is objective history, seen from a Singaporean standpoint. Not all the history books have been written, because hitherto many documents have been locked away in archives. But now 30 years after our independence the archives are starting to be opened, and the documents for this period are becoming available to historians. Progressively, a more complete picture will emerge. But the Singapore Story is also a live story. It concerns not only events which are receding into the past, but developments which continue in the present. Both teachers and pupils must take an interest in current affairs. They should know what is happening in the world or in our region which can affect us; what economic, social and political developments are taking place in Singapore. They should know what the national debate is about, what is at issue. The most vivid lessons in National Education are to be found not in the books, but in what we live through and what we observe happening around us. I am not proposing that students should form mini-political parties in schools, or demonstrate on the streets, as Chinese school students manipulated by Communist agitators did in the 1950s and 1960s. But students and their teachers must be alive to events around them, so that when they later become adults and exercise their duty as citizens to decide the future of the country, they will decide wisely. From time to time, issues will arise which contain lessons for the future for example when Michael Fay had to be caned for vandalism, or Flor Contemplacion was hanged for murder. Whenever this happens, we must make a special effort to get Singaporeans to understand what is going on, why we did what we did, and what it all means for us. Each such episode will be another piece of the Singapore Story. This makes the Singapore Story harder to teach, but also more exciting and relevant. In teaching the Singapore Story, you will have to deal with delicate issues, especially race and religion, and sometimes relations with our neighbours. We must treat such issues sensitively, but we cannot gloss over them. Amnesia is not an option. We cannot pretend that incidents involving race and religion never happened. They are part of our history. This is not a unique problem for us. For example, in America descendants of Unionists and Confederates both study the American Civil War; descendants of slave owners and slaves both learn about slavery and the civil rights movement. America is the stronger country for acknowledging these divisions in its past and coming to terms with them. In Singapores case, different races, owing loyalties to different countries, lived in the same British colony. They were moulded into one Singaporean people by their experiences before and after independence. Two race riots took place in 1964, which had been deliberately instigated to intimidate Singapores Chinese population. Many Chinese and Malays were killed. Riots occurred again in 1969, after independence, a spillover from the May 13 riots in Malaysia. Race relations in Singapore took years to recover from the trauma of these events. Unless pupils know these facts, and learn what they mean, they will never understand why we emphasise racial harmony so strongly, and insist that the majority Chinese community should never make the minority communities feel oppressed. Such ignorance will pose a real risk of racial conflict happening again one day. All Singaporeans, whether Chinese, Malay, Indian or Eurasian, can identify with the ideal of a multi-racial, multi-religious society which Singapores leaders fought for while in Malaysia, and which we have tried to realise as an independent country since 1965. It is because Singaporeans of all races, and especially their leaders, stayed united and refused to be intimidated that we separated from Malaysia. The issues which led to Separation were fundamental, and remain so today. By teaching the history of how we became one people, we will draw our races closer together. But our aim is not to expunge the differences between the ethnic groups. Each community contributes its own unique characteristics and strengths to our society. If Chinese Singaporeans lose their Chinese cultural heritage, or Malay Singaporeans discard their traditional customs and Islamic values, we become a much weaker society. We must create unity in diversity. Conclusion This National Education programme is a major undertaking. Its effects are long term. We will not know for many years how well we have inculcated values, attitudes, and habits that emotionally bond our people to one another, as proud co-owners of their best home, Singapore. As teachers and principals, you carry most of the responsibility for giving your pupils a total education, and for their National Education. The Ministry will back you up with the resources, guidance, and materials that you need. For example, MOE will produce a monthly series of videos for schools, to keep teachers updated on current affairs. The National Education Web Page we are launching will provide more information and be a channel for teachers to discuss ideas and share resources. The moulding of the next generation is in your hands. You must imbue them with a strong sense of national identity and social responsibility. If we fail, all that we have painstakingly built up over decades can unravel and fall apart within a few years. But put our best effort into this vital task, and we will succeed.