Current Event #6 United Kingdom

The United Kingdom has been in a similar financial pinch to the U.S. Due to risky borrowing and increase in the elderly population, the U.K. struggles to find solutions to help pay for the social programs for its citizens. Also, struggling with debt, the U.K. is also trying to balance and makes cuts in the budget. In response to these financial pressures, the government has made plans in the Budget to change tax allowances for pensioners, amid claims they amount to a "raid" on their incomes. Labour said the hidden tax rise would affect millions. The allowances will not increase with inflation and will be frozen at the 2012-2013 levels. In addition, anyone turning 65 after April 5th 2013 will no longer qualify for the tax allowances.
MP Matthew Hancock said the government is committed to supporting people in old age and has pledged to raise the state pension in line with either earnings, inflation of 2.5%, whichever is higher. He claims that the new tax measure "the granny tax" is to help simplify the allowance process. In the upcoming years, ministers want to move towards a single tax allowance for those of working age and retired. The Labour Party laments this tax policy claiming they should have reduced employers' national insurance and VAT instead. Interest groups representing pensioners said the measure was not fair and claim this will "come back to haunt" the government. This could prove to be a divisive issue in the next election.
"Budget 2012: Ministers under fire over tax allowances for pensioners"

Current Event #5

Putin's re-election has caused quite the uproar in Russia. When it was announced in December that he had won the presidential election, many claimed voter fraud and protests ensued. The way Putin has choreographed his way back into presidency has angered many elites and many citizens. His party did poorly in the December parliamentary election. Also as corruption and widespread charges of election fraud spread, the government's legitimacy is slowly eroding. At the same time, Russia's middle class has grown in size and is yearning for government accountability and less corruption. The growing access to the internet has also played a role in Russia's feeling of discontent. Social networking has been a key element in organizing the protests. Despite growing unrest, the economy continues to grow at a rate of 4%. However, only 50% of the population approves of Putin. This could weaken the bureaucracy as officials fear to enact controversial legislation, thus making it more difficult to govern their people. The flicker of doubt whether Putin will complete his new term shows how much Russia has changed.
Putin's shakiness to hold on to power shows Russia's instability as it tries to gain experience and legitimacy as a democracy. Putin had made the government more central and with his restriction of the media, he was returning the government to a more authoritarian form. Russian's response towards Putin's attempts to consolidate power highlights the ills of this democracy and further raises questions of its legitimacy. The expanding middle class and greater access to the internet has allowed more democratic movements occur and as the people of Russia become to model more of a democratic society, the government will soon succumb to their demands for reforms. "Putin's New Constraints"