Newell-Fonda High School
Newell, Iowa
Teacher: Mrs. Doonan  

The Millennium Charge Account
By Matthew Bodholdt
12th Grade

Everyday the national debt increases an average of 1.3 billion dollars. Simple math shows that each citizen of the United States would have to pay around $22,000 for the entire national debt to be paid in full. With the Millennium Challenge Account the government is taking the people's tax money and shipping it overseas. The Millennium Challenge Account should not be adopted because it increases America's already extravagant debt and exploits the taxpayers by using the money they are forced to contribute for reasons that will not benefit the American people.

The Millennium Challenge Account has the potential to help hundreds of thousands of people all around the world. Proponents of the MCA are quick to contend that the money is to be used to create industry that in turn supplies the people of that country with jobs and a regular paycheck. When people have jobs they spend money, which in turn increases the economy as a whole. The goal of the MCA is to build strong and corruption free economies to help the general public of that country. It also inspires their governments to work toward a corruption free government to get the money promised by the MCA. The fact that countries now have to work to create a better government to receive the money is the best idea outlined in the MCA.

Although the MCA has many positive ideas, it is fatally flawed. The money that is planned to ship overseas comes from one source, the taxpayer. This money [would be] used to create industry in under-developed countries where labor prices are far below the standards in the United States; therefore, when industry develops US companies will move overseas to take further advantage of cheap labor costs, the result: the American worker loses his or her job and the economy of America itself is damaged. The solution to forcing people to put themselves in this position is privatizing the idea of the MCA. If control of foreign aid was turned over to the private sector totally, people could choose whether or not they want to contribute. Te private non-profit corporations could solicit donations to the fund, perhaps even with cooperation from the government by putting the option to donate on the tax returns or something of the sort. The main objection to the MCA is the increase in taxes. If it is privatized and not made mandatory our standards of American freedom would be better preserved. Taxation is oppression.

Hundreds of thousands of people live in poverty in the United States right now. There is no provision for helping them in the MCA. If the United States must help someone why not help out its own citizens first? The region of Appalachia is probably the poorest region in the United States. There people live in relative shantytowns. Why would the government tax these people even more to help out other people overseas that are living in the same conditions? What about the American people? Can the government turn its cheek on the average citizens loss due to the MCA? The whole idea leads to people paying to lose their jobs and their way of life. Could the U.S.  go so far as to where they're the ones requiring aid in the future? Take care of the poor at home. Reap the benefits of helping ourselves.

The United States is enormously in debt. The current count on how much the U.S. owes is over six trillion dollars, with it rising an average of 1.3 billion dollars a day. This is due to careless spending by legislators and schemes such as the MCA. Even though the national debt may never be paid off, the government should still be prudent with its spending habits. The MCA calls for loans made to developing countries that will never be paid back. That is a  terrible business practice. Would a bank survive giving free money away? Can a country survive giving free money away?

When handing out foreign aid the government views each country as [an] investment. The MCA states that it will benefit eighty-three countries; those are eighty-three different investments and eighty-three more ways that the United States will be pressured to enter world conflicts. The U.S. will be forced to enter these conflicts in the name of protecting an investment. This is one of the many problems associated with handing out money to other countries.

Adopting the MCA would increase America's already extravagant debt and exploit the taxpayer by forcing them for reasons that will not benefit them. The MCA has good intentions by placing more responsibility on developing countries. The problem is that in the U.S. there are many poverty-stricken people living in conditions not unlike the conditions in the countries the MCA would benefit. National debt is also a huge problem and giving away free money will not help the U.S. out of debt. Contributing money to foreign countries also makes us liable in the event that something happens to that country and the U.S. would be forced into military action. If something like the MCA was to come about, it should be a private organization working with the U.S. government to make the contribution one of personal convictions, and not one that's forced.

Questions

Q1- President Bush claimed that most funds for development do not come from international aid. He mentions three things that do fund development. What are they?

A2- He mentions domestic capital, foreign investment, and trade.

Q2- President Bush reminded his audience that successful development in a third world country requires more than funds. What two items did he mention in this regard?

A2- He mentions security and stability.

Q3- When is money sometimes counterproductive, according to President Bush?
A3- According to President bush money  is counterproductive when it fuels corruption.

Q4- Describe the Millennium Challenge Account and include in your description what is anticipated from donors and recipients.

A4- To me the Millennium Challenge Account seems to be one of many programs the government controls that they should have nothing to do with. I do agree that poorer counties need help, but I do not believe that our tax money should be sent overseas to help other countries increase their economies by trading with us; consequently, Americans loose their job when companies move overseas to to take advantage of new cheaper labor. To use the word donor contribution to the fund would have to be optional, but it isn't. It is tax money that is paid to the government and is supposed to be used to benefit the taxpayer. To be short winded, the MCA exports our tax money so other countries can make more money to the dismay of the average American worker. I believe that if something like this is going to be done it should be a private venture. Solicit donations and make it optional so people who want to can donate. Perhaps it even can be government related so it is highly visible to the public eye, but make it optional.

Q5- What are the three broad standards that President Bush expects the leaders of the developing nations to adopt?

A5- President Bush expects the leaders of developing nations to govern justly, invest in the people and promote economic freedom. 

Q6- Describe President Bush’s challenge to development banks and explain why or why not you favor it.

A6- President Bush expects development banks to grant money to developing countries that will never be paid back. I am in total disagreement with the President. A developing country receives free money from the United States to produce goods that sell in the United States, the goods are also produced in the United States but the developing country's goods are cheaper due to lower labor costs; consequently, United States companies go out of business and American citizens lose their jobs.

Q7- What percentage of our national income (GNP) do you think the United States government committed to foreign aid in 2002? First answer this question and then use the Internet to find the answer. 

A7- I would say around 5%, but I find on the Internet that it is only .o3%m which makes much more sense than my original estimate. Although, even at only .03% I object entirely to aiding foreign countries in the way the United States often times does. As I stated before, foreign aid should be privatized totally.

Q8- Describe and defend a “Me First” attitude. (Use your head ¾ you won’t find the answer in the required reading.)

A 8- I am a firm supporter of the “Me First” attitude in this situation only because American workers will loose their jobs when developing countries flood the U.S. markets with cheaper goods. 

Q9- Describe and defend a “Mutual Benefit” attitude. (Use your head ¾ you won’t find the answer in the required reading.)

A9- As I see it, there is hardly any benefit for the United States, our money is taken and shipped out, our jobs end up lost and foreign countries still hate us. 

Q10- Describe three unsuccessful foreign aid programs operated by the U.S. government or private American citizens. (Do not use the programs discussed in the testimony of Faith Action for People-Centered Development Policy included in your required reading. Conduct research using the Internet. Duplicate examples from the same class will not be accepted.) 

A10- No answer offered.

Q11- Describe three successful foreign aid programs operated by the U.S. government or private American citizens. (Do not use the programs discussed in the testimony of Faith Action for People-Centered Development Policy included in your required reading. Conduct research using the Internet. Duplicate examples from the same class will not be accepted.)

A11- No answer offered.

Q12- Steve Radelet, Senior Fellow at the Center for Global Development, believes we can do both take care of our own people and lend a helping hand to citizens of less developed countries. Explain why you think we can or cannot offer aid to both. 

A12- We certainly can, only not through government programs. Private organizations would have a more focused cause. 

Q13- What do you think about Mr. Radelet’s assertion that “the administration is leaning towards a system in which eligible countries would write proposals (or business plans) describing their objectives and strategy, how they would use the money, the benchmarks used for evaluation. Giving recipient countries this responsibility is a revolutionary change in US foreign assistance.”? 

A13- As far as the MCA goes, I find this to be the best idea so far. As it is said it would be a major step towards responsible ruling abroad.

Q14- Which of Mr. Radelet’s three concerns regarding the MCA concerns you and why?

A14- As I've stated all throughout these questions, I do not support the MCA at all, so as far as I'm concerned these are miniscule as compared to the issue of whether it should exist at all.

Q15- There is evidence of an increase in negative world opinion towards U.S. foreign policy, not necessarily the American people. To counter this negative perception of the U.S. some people want the U.S. to concentrate more on weapons of mass assistance (WMA) and less on weapons of mass destruction (WMD). Please comment. 

A15- The U.S. will probably never have a positive stigma in the world community, but instead of creating more and more weapons until we have the power to destroy the Earth, we could concentrate on life instead of death.

Q16- What does the World Bank recommend as the United State’s “just and appropriate share” to reach the Millennium Development Goals by 2015? Do you think our citizens can afford that kind of increase? Defend your views. 

A16-Taxation is always oppression, in my opinion anytime more money is taken from us, especially to leave the country, we cannot afford it.

Q17- What do you think about the request of Faith Action for People Centered Development Policy’s request that tax dollars be used to fund, not only government-sponsored foreign aid programs, but “that funds also go to NGOs and grassroots organizations”?

A17-Independent organizations need to be just that-- independent. They should not be allowed to use public money to further their agenda.

Q18- How many countries would be affected positively y health-related investments according to the Commission on Macroeconomics and Health (CMH)?

A18- No answer offered.

Q19- According to the CMH, how much would be gained annually between 2015-2020 due to saved lives and increased economic growth, if an increased investment were made in global AIDS and other health services?

A19- Theoretically, $360 billion would be gained annually

Q20- Use the Internet for your research and name the two congressmen who introduced H.R. 4524. Give a 2-line synopsis of that bill. 

A20- It is called the Debt Relief Enhancement Act of 2002; it is designed to create a way for heavily indebted poor countries to find their way out of debt. Representatives Christopher Smith and John LaFalce introduced the bill.                                                Back