Private equity firms buying publicly traded businesses an Example of the Topic Economics Essays by

The growing trend: Private equity firms buying publicly traded businesses Purchases of publicly traded businesses by private equity firms: Private equity markets are witnessing a flurry of activity and growing at a phenomenal rate because of large deals. On the whole, private-equity firms made a spending close to $50 billion during 2006, which is five times what they spend for instance in the U.S. healthcare company purchase deals in 2005, in the opinion of Dealogic- a company that follows global M&A activities. To continue with the example, the U.S. healthcare industry that is worth $1.8 trillion or more than $1 of every $7 spent in the nation's economy is gearing towards for investment from Private equity firms, in the opinion of industry analysts and firms involved. For instance the $32.7 billion deal of hospital operator HCA Inc. led by private-equity firms Bain Capital LLC, Kohlberg Kravis Roberts & Co and Merrill Lynch Global Private Equity which was agreed to by the shareholders during November 2006. (Japsen, 4) Need essay sample on "The growing trend: Private equity firms buying publicly traded businesses" topic? We will write a custom essay sample specifically for you Proceed University Students Often Tell EssayLab professionals: Who wants to write paper for me? Specialists propose: Get Help In Writing An Essay Buy Essays Online Paper Writers For Hire Best Essay Writing Service Best Essay Writing Service The main drivers of these activities are due to the inherent size of the healthcare industry and its fragmented nature of functioning throughout the nation due to which it appears natural that investments by publicly traded companies are unable to tackle the growing U.S. medical-care system on its own. In the opinion of private-equity firms, publicly traded companies such as HCA are drawn towards private ownership in part since it eases them of the pressure of reporting regarding their earnings on a regular basis to the Wall Street and the public. (Japsen, 4) Who is going to be impacted and how: Private-equity firms are possibly the newest phenomena on the Wall Street at the moment, equipped with the financial muscle to buy the publicly traded companies. The impact of this has been in more ways than one. The reach of the private equity companies into the financial markets is poised to change the structure of the stock market by way of placing a rising number of big-ticket companies beyond the reach of small and average investors besides placing several retirees pension and retirement funds into increased speculative investments compared to earlier. Basically this a refurbished form of the leveraged buyout -- LBOs firms of the 1980s under which these firms enter into deals with companies that are undervalued, put them into shape and dispose them following earning of a quick profits in a very short time. Their secret has all along been the efficient use of debt that is normally close to 70 cents of every dollar invested. As they stack debt on the companies which they enter int o deals, private equity firms free up their own money, thereby permitting them to make more investments and maximize their potential returns. (Krantz, 10) The amount invested in private equity touched $139.6 billion during 2005 which was double the amount compared to 2003, according to Citigroup authorities. This figure is more than $135.8 billion which were invested in stock mutual funds in 2005. And because private equity firms are sitting on huge stockpile of cash, they are assuming a more crucial and developing financial strength currently. For instance, Jack Welch, former CEO, GE, Robert Johnson, founder of Black Entertainment Television and U2's Bono, have taken the private equity route. During 2006, some of the large U.S. players gobbled by private equity firms included Neiman Marcus which was bought for $4.9 billion, Toys R Us for $$6.6 billion and Computer Services firm SunGuard Systems for $11.3 billion. However the much talked about deal that was the biggest private equity deal in recent years was the acquisition of Hertz Car Rental Company for $15 billion by a group of firms. In a sharp departure from what was happening dur ing the 1980s in which the companies were bought and rebuild, the current trend has been that the private equity firms is putting qualified management groups who are capable of raking in more profits from less performing companies. (Krantz, 10) Will some benefit while others lose? It is observed that only big names have been benefited by the Private Equity deals. A slew of giant companies like Clear Channel Communication, Cable Vision, Readers Digest, SunGuard Data Systems, MGM and the hospital major HCA have been bought out through private equity deals. There has been no respite from this with the Blackstone Group disclosing about its intention to buy Equity Office Properties Trust-the nation's largest owner of office buildings, in a deal that was unprecedented. However as the number and size of the private equity deals have risen, eyebrows have been raised regarding whether the leveraged buyout market which they are fueling might eventually leave some companies and shareholders shattered. The Securities and Exchange Commission is also probing into accusations of insider trading and multi-million dollar fraud. (The New Face of Capitalism) There have been instances where shareholders have filed lawsuits to put an end to some of the deals, like the buyout of hospital chain HCA. Astoundingly huge payouts in the form of dividend payouts to private equity buyers from companies such as Hertz have often made the firms appear to be hungry. In the past, private equity firms remained in a secluded corner of the financial world, satisfied with buying, building and running strong companies. A lot continue to do just that. However the fact that made them popular during the 1980s was that there were more and more of leveraged buyouts wherein the groups added huge borrowings to their own cash primarily due to the liberal debt laws which safeguarded profits from the tax authorities. (The New Face of Capitalism) Happenings of recent years have made apparent that satisfaction for both countries as well as individual companies can be risky in the current global economy. The present encouraging outlook for US can be upturned rapidly. Given the increased competition within the companies and industries, winners and losers are not decided once. Recent researches have depicted that 50% of America's economic growth comes from firms which were non-existent about 10 years ago. Not do these high-growth firms create jobs, they also are less comparatively likely to fail, build substantially more wealth in the form of profits, sales and value, pay higher wages, give higher employee benefits and make more investment in research and development. Besides, high growth firms inspire growth and the development of other non-high-growth firms. (Buss, 53) What is prompting this activity? The pace of activity in private equity deals has been so hectic that even the corporate giants Texas Instruments, Dell Computers and Home Depot could be the next targets of private equity firms. The main drivers of this activity is the manner in which the management strategies and methodologies equip private equity firms to show impressive results which is beyond the reach of others. By observing the companies owned by major private-equity firms and discussing with the executives who manage them, it is found that there is a unique procedure of management which is strikingly distinct from what happens in majority of the publicly traded companies or majority of the private companies that are traditionally managed. The differences start at the most basic level with new objectives. (Colvin; Charan, 18) Private equity firms desire to enter into deals with companies for their portfolio, rebuild them and dispose them off within a timeframe of 3 to 5 years. The ultimate buyer might be another company in the portfolio company's industry, a new private-equity firm or the public, through an Initial Public Offering -- IPO. The period of holding is sometimes less than a year to as long as ten years. Nevertheless, the ultimate objective from the day the deal is inked is to sell the company at a profit. The definition and the underlying meaning of 'Pay' is altogether different concept in private equity owned companies. It is observed that whereas a lot of public companies express regarding matching the pay of executives with performance, they normally award stock options and limited stock over and above greater pay packages, thereby giving the executives a great deal to gain, and little to lose. (Colvin; Charan, 20) Moreover, in case of big companies, these options show the wealth of the entire company and not the particular business a manager who is in charge of. This is in sharp contrast in case of private equity firms where the mode of functioning is much more serious. It is not just that a greater proportion of the executive's pay is linked to his business performance, but top managers might also be needed to contribute a sizeable chunk of their own money into the business deal. This is because putting own money builds an ownership frame of mind instead of a corporate mentality. The resulting difference shapes the manner in which one spends the money. Besides, one more thing that is prompting this activity is that people just attempt to put in more effort when their money is at stake. For instance, in the opinion of Pramod Bhasin of Genpact, an outsourcing company owned by GE, becoming owners makes one strive and put all-out effort to attain targets and look for newer areas where the busines s could be reached. (Colvin; Charan, 20) References Buss, Terry. F. Capital, Emerging High-Growth Firms and Public Policy: The Case Against Federal Intervention. Praeger. 2001. Colvin, Geoffrey; Charan, Ram. Private Equity, Private Lives. Fortune Magazine. 27 November, 2006. pp: 18-20 Japsen, Bruce. Private equity is shot in the arm for industry. Chicago Tribune. 30 December, 2006. pp: 4-5 Krantz, Matt. Private Equity Firms Spin Off Cash. USA Today.16 March, 2006. p. 10-11. Roane, Kit R. The New Face of Capitalism. US News and World Report. 26 November, 2006.

Tabula rasa Essay Example

Tabula rasa Essay Example Tabula rasa Paper Tabula rasa Paper The role of genetics, the environment, the child, and the need for past as prologue What does the past as prologue mean? The degree to which it is deemed necessary to consider the past to understand the present What does the born this way model emphasize? Role of genetics in development What does the born this way model discredit? The environment What did behaviorism represent? Children as passive recipients of colonization influences Which model was the most popular when Pigged first came into the picture? Nurture model Who said that humans are blank slates? John Locke What is the term used for blank slate? Tabular Rasa What does the blank slate theory mean? Individuals are built without built-in mental content and that their knowledge moms from experience and perception What did Watson believe to be true about why children develop the way that they do? Observing children, rather than speculating on their ancestry Did Watson agree with John Lockers blank slate theory? Yes What was Watson view on development in general? Complex motives and behaviors can be built upon via classical conditioning What was the study Watson used to prove his point? Little Albert and conditioned fear Watson famous quote was known for what? No matter who you are and where you come from, you can turn into anything What is classical conditioning? The association of some behaviors with specific stimuli and even show how some stimuli that now elicit responses might not have done so once in the past How did Watson make the little boy afraid of rats? He made an obnoxious sound every time the boy reached for the rat, he was not afraid of rats before but became so with time Why was classical conditioning not a successful theory? Hard to test scientifically, absurdly complicated as an explanation for motivated behavior (usually just a simple emotional response) What did skinner believe to be true about how children develop? The environment was primary source of explanation for behavior, useless to study the brain and thinking processes What did skinner emphasize the most when it came to understanding thoughts? We have brains, but you did not need to understand thoughts to understand behavior What did skinner call thought? The black box What did skinner believe to be true about understanding behavior? Relations between what goes on in the environment and how the organism behaves What was different about what Watson believed and what skinner believed? Skinner didnt think that classical conditioning was all that important , he leveled that behavior is predicted by rewards and punishments What is reinforcement? Things happen more frequently if they are rewarded What is extinction? When rewards are taken away, the behavior IS likely to stop happening What is punishment? Instead of something satisfying happening, something adverse followed What did bandeau believe to be true about development? People learn things observationally and imitating others (role model) What is the critical distinction in knowledge and performance? Even if we know how to do something we dont always do it What did bandeau believe about the brain? Behavior is cognitively based What did bandeau believe to be the most powerful motive in development? Self-efficacy: ones belief in his/her ability to control their own life, (it is not what they know but what they believe about themselves) What the dominant model in the mid asss? Environmental model What was the name of the dominant model before Pigged? Mechanistic child: children develop as a machine, predictable What did Pigged assume about a child? Active participant, relationship with the world is adaptive, child is creating equilibrium, constrained by what the child already knows What kind of thinkers did Pigged believe children were? Fundamentally different kind of thinkers, not just inexperienced and immature Pigged on A-not-B? ; Babies fail at this task because they do not have the concept of Object permanence. For 8-1 a-month-olds, an object is acting and sensing. Its location, the search itself, is part of the object, Babies older than 12 months, succeed at the task because they are able to form and abstract mental representation of the object. What was the key to Piglets behavior about young children? Young children were simply not less skilled or learned about denied objects, they cannot separate the concept of an object from the actions it takes to retrieve it from under a cloth (A Not Be) What is the self- determination theory? While people are often motivated to act by external rewards such as money, prizes, and acclaim (known as extrinsic motivation), self-determination theory focuses primarily on internal sources of motivation such as a need to gain knowledge or independence (known as intrinsic motivation). According to self-determination theory, people need to feel the following in order to achieve such psychological growth Competence: People need to gain mastery f tasks and learn different skills Connection or Relatedness: People need to experience a sense of belonging and attachment to other people.

Dispute Settlement Understanding Essay Example | Topics and Well Written Essays - 3500 words

Dispute Settlement Understanding - Essay Example The members of the WTO are aware of the clear and well established legal procedures available for smooth trading and enforce the relevant rules to settle disputes among themselves. These rules are contained in the understanding on Rules and Procedures Governing the Settlement of Disputes (through Dispute Settlement Understanding or DSU)2 . The strict legal and policy framework of the DSU helps in promoting adherence to rules which are negotiated by WTO Members and since the rule of law rather than the rule of power is applicable and important, the DSU rules are beneficial for small and medium sized countries engage in worldwide trade so that there is very little scope for unilateral trade actions by large countries3. There are automatic establishments of panels to review complaints and disputes by WTO members and specific timelines are also established throughout the process so that all disputes are resolved quickly and efficiently. If the disputes are addressed in favour of a particular member, there are also provisions for a right to appeal against panel decision to a permanent Appellate Body on issues of law and automatic adoption of panel reports4. The WTO Members are encouraged to resolve disputes through consultations and for most disputes, reaching to the state of panel decision may also not be necessary5. If panel decisions are taken, the panel report and the Appellate Body report are adopted by WTO members and at a meeting of the Dispute Settlement Body, it becomes a WTO ruling. The members who are found to violate obligations are given a period of time to comply with the ruling in whatever manner possible. The member is given a time period within which it has to comply with the ruling. If the member fails to comply with the ruling, within the prescribed time limits, then it has to offer compensation to the complaining member during the time of pending compliance with the ruling. When there is disagreement on compensation, then the complaining member may be authorised to retaliate and take action until the other member has actually complied with the ruling. A rule based system seems to provide for a framework that helps to manage international trade relations and the trade disputes. The best method of resolving trade disputes have been considered as consultations and negotiations and when the consultations fail, then the dispute settlement provisions are utilised and panel decision may be sought.6 When even panel decisions fail, appeals are made to the Appellate Body and the legal provisions are identified and implemented. The DSU facilitates smoother trade transactions and exports between countries and also helps individual member countries to defend measures which may be challenged by the other trading partners7. In this assignment we will discuss the effects of Article 4, 6 and 23 of the

Discuss your most significant academic or personal achievement Essay

Discuss your most significant academic or personal achievement - Essay Example I succeeded to mÐ °intÐ °in multi-tÐ °sk Ð °ctivity Ð °nd Ð °m especiÐ °lly proud to hÐ °ve 4.00 grÐ °de point Ð °verÐ °ge thÐ °t ultimÐ °tely Ð °llowed me to grÐ °duÐ °te Ð °s sÐ °lutÐ °toriÐ °n. I hÐ °ve Ð °lwÐ °ys enjoyed school Ð °nd clÐ °sses Ð °nd tried to tÐ °ke Ð °s much Ð °s it wÐ °s possible from every single lesson. I Ð °m Ð °n Ð °ctive student on clÐ °sses; I Ð °lwÐ °ys tÐ °ke Ð °n initiÐ °tive when it comes to Ð °nswering teÐ °cher’s questions on regulÐ °r clÐ °sses or helping other students to keep up with some subjects. Besides Ð °cÐ °demic excellence, I try to succeed in the theÐ °ter production thÐ °t occupies the mÐ °in pÐ °rt of my extrÐ °-curriculÐ °r Ð °ctivities. I Ð °m currently plÐ °ying Ð ° leÐ °d in â€Å"You’re Ð ° good mÐ °n ChÐ °rlie Brown†. This role tÐ °kes Ð ° lot of efforts, but I do like plÐ °ying. My school, pÐ °rt-time job Ð °nd service job leÐ °ve little time to leÐ °rn the scenÐ °rio thÐ °t is why I hÐ °ve to be reÐ °lly efficient if I wÐ °nt to succeed in the plÐ °y Ð °nd to mÐ °intÐ °in my leÐ °d position. I Ð °m therefore continuously performing under strict deÐ °dlines Ð °nd cÐ °n be eÐ °sily given to stress. However, I mÐ °nÐ °ge my time Ð °nd Ð °ll tÐ °sks Ð °ccording to set priority Ð °nd time of delivery. In my theÐ °tricÐ °l performÐ °nce it is Ð °lso worth mentioning SÐ °n FrÐ °ncisco BÐ °y Ð reÐ ° productions where I pÐ °rticipÐ °ted since the Ð °ge of three. I hÐ °ve therefore completed over fifty productions. My Ð °chievements in theÐ °ter Ð °lso include three rewÐ °rds for the best Ð °cting in Ð °dult legitimÐ °te theÐ °ter. I hÐ °ve been the GrÐ °nd ChÐ °mpion in vocÐ °ls for the StÐ °te of CÐ °liforniÐ ° during five yeÐ °rs: 2001, 2002, 2003 2004 Ð °nd 2006. Not only Ð °m I involved with Ð °cÐ °demic Ð °nd extrÐ ° curriculÐ °r Ð °ctivities; I Ð °m Ð °lso working in Ð ° pizzÐ ° restÐ °urÐ °nt Ð °pproximÐ °tely 20 hours Ð ° week (nÐ °me the work thÐ °t she is hÐ °ving, then it cÐ °n be better described). This employment hÐ °s tÐ °ught me much

Welfare Drug Testing Essay Example for Free

Welfare Drug Testing Essay Welfare was originally designed to help out poor families in need. Throughout the years, there have been issues with people taking advantage of the system. The government has made efforts to try to help welfare recipients to get a job instead of seeing welfare as a lifestyle. The next step government should take is to drug test welfare recipients. If a person has enough money to get his or her drugs; he or she should have enough money to support their family. It is unfair for us tax payers to support other people’s family and addiction. It is clear that drug testing welfare recipients would benefit not only the system, but also recipients themselves, and tax payers. One of the first benefits the system would get by drug testing welfare recipients is decrease the number of people who take advantage of it. I personally know people who get all the government help they can without having a real need. I had a coworker whose husband would sell their food stamps in order to get his marijuana and other drugs. My coworker had 5 kids and would get about $800 worth of food stamps, plus WIC, plus section 8, and plus cash aid. She made sure she only worked enough hours not to go over the low-income limit requirements. Of course hours where available for her, but why would she get tired and work more when she can get more money by not doing much? And just like her, there are many people who do this. I think if a person is healthy he or she should have no problems getting a job. Talking about jobs, don’t we all must take a drug test in order to get hired? Why should getting welfare be different? Unconstitutional? Unconstitutional is using taxpayers’ monies to support other individual’s addictions. Individuals, who oppose drug testing welfare recipients, are either recipients who are afraid to be deny due to drug use, or confused tax payers. Confused tax payers might think that by drug testing all welfare recipients the government would have to invest more of our tax money on this programs. What tax payers should know that in the long run, this is very beneficial and needed for us. Recipients who are abusing drugs would think twice before applying for welfare. The number of recipients abusing the system will dramatically decrease. It could even be beneficial for the recipient who abuses drug, since if he or she really has the need they would seek help to stay clean. Usually when an addict recovers, he or she sees life as new beginning and his or her enthusiastic will more likely encourage being someone in life. According to US Department of Health and Human Services, U. S. Department of Commerce, and CATO Institute: â€Å"The government spends on welfare annually (not including food stamps or unemployment) $131. 9 billion dollars. There is 40 states where welfare pays more than an $8. 00 per hour job and even 7 states where pays more than $12 per hour. Hawaii’s welfare hourly rate is equivalent to $17. 50 per hour and our neighbor state California $11. 59 per hour. † I personally think is not fair at all that hard working individuals like me, have to struggle to pay bills, rent, groceries, health care etc. o support our family; when others are living so comfortable and buying drugs with our taxes. Research shows that 20 percent of TANF (Temporary Assistance for Needy Families) recipients admitted to using an illicit drug sometime in the last year. In addition, substance use is associated with increased duration (and cycling) of TANF receipt. With approximately $33 billion spent on TANF payments each year, it is alarming if over $6 billion is supporting drug users (Substance Abuse Policy Research Program, 2007). In conclusion, if the working class has to be drug tested to make their money, those receiving assistance should be drug tested to receive their check. The government would get numerous benefits if they start drug testing welfare recipients. Clearly, drug testing welfare recipients would benefit not only the system, but also recipients themselves, and tax payers. As of April 17, 2013, at least 29 states have proposed legislation requiring some form of drug testing or screening for public assistance recipients in 2013 (National Conference and State Legislatures, 2013).

Barn Burning - Sartys Struggle Essay -- essays papers

Barn Burning Sartys Struggle Barn Burning: Sarty's Struggle The theme of William Faulkner's Barn Burning is Colonel Sartoris Snope's desire to break away from the oppressive conditions of his family life. He is pulled between his family and his morality. In this essay, I will discuss Sarty's struggle between the two sides of his conflict and the point at which it becomes resolved. First, we will look at Sarty's pull towards his family. At the first trial, we find Sarty looking at his father's opponent sitting behind the table. Sarty identifies him as "his father's enemy", but he quickly changes his thought to "our enemy". Then after the trial, Sarty fights a boy twice his size because the boy yells out, "Barn Burner." These two instances are attempts by Sarty to fit himself into his family. He feels he might be able to do this by taking up his father's offense. Later in the story, after Abner has ruined the rug, Sarty says to his father, "You done the best you could! If he wanted hit done different why didn't he wait and tell you how! He won't git no twenty bushels! He won't git none! We'll gether hit and hide hit!" This is another attempt by Sarty to find his place. Although he knows his father is guilty of ruining the rug, he is willing to help his father hide the crop to avoid paying damages. His father, Abner, even tries to influence Sarty's decisio n. After camping the first night, Abner takes Sarty aside and tells him, "You got to learn. You got to learn to stick to your own blood or you ain't going to have any blood to stick to you." These attempts to defend his family and his father in particular are his way of exploring this realm of his conflict. He is trying to find out if there is a place for him. H... ... is at this point that Abner realizes that he has made his decision. Abner tries to contain him by having his mother hold him but Sarty gets free and runs to warn the de Spains. It is at this point that we know the end to the conflict has arrived. Instead of running back to the house to help with the fire, Sarty runs into the wood and continues to run. He is leaving and he is not looking back. He decides to stand on the side of morality and turns his back on his family. Sartoris Snope resolved his dilemma by exploring both sides of the coin. He then found something that represents his ideal situation, the de Spain plantation. Then he made his decision and he did not look back. The conflict that Faulkner brings to life in the Barn Burning is not uncommon. We each face a similar struggle at some point to find our morality. It is simply part of the human condition.

Benjamin Franklin in his Autobiography Essay

Similar to Benjamin Franklin in his Autobiography and Frederick Douglass in his Narrative, Pip in Great Expectations also demonstrates the archetypal boyhood to manhood narrative. Each story recounts a journey of growth and development, of maturation and self-discovery through experience. In addition, the protagonist of each novel has a purpose which directs his actions and decisions throughout the course of his journey. However, one significant difference exists between the two historical characters and the fictitious Pip-while Franklin and Douglass both strive for realistic and self-improving goals, Pip, like his imaginary character, entertains an idealistic dream. Pip desires to leave his former social class as a common boy and advance in life as a gentleman. This idealism quickly consumes Pip and becomes both the thematic center of the novel and the psychological mechanism that encourages much of Pip’s development. Ironically, many instances in the novel show that the symbols and figures of the wealthy class that Pip idolizes are in fact his greatest tormenters. From their unfavorable effects on Pip such as abuse, pain, and unhappiness, manifests the idea that social standing does not determine one’s happiness and well being, and most importantly, one’s self worth. Even before Pip becomes a member of the wealthy class, his mere exposure to it initiates a procession of pain brought about by physical, verbal, and emotional abuse. Miss Havisham, despite her eccentricity, represents the class, wealth, and advancement that direct Pip’s actions and emotions for a large portion of the novel. Upon hearing about Miss Havisham’s desire to see Pip, Mrs. Joe â€Å"pounced upon [Pip], like an eagle on a lamb, and my face was squeezed into wooden bowls in sinks, and my head was put under taps of water-butts, and I was thumped†¦ and rasped, until I really was quite beside myself† (52). Dickens’ clever use of violent rhetoric such as â€Å"pounced,† â€Å"squeezed,† and â€Å"rasped† and the metaphor, â€Å"like an eagle on a lamb† paints an unpleasant predator-to-victim scene in the reader’s mind. Mrs. Joe’s ecstatic reaction over the idea of Pip’s opportunity to befriend the wealthy class makes this scene the novel’s first hint of social advancement that will later consume Pip’s life. Consequently, Mrs. Joe becomes the first instrument of the upper class to inflict pain on Pip, carried out by the violent and painful bath. The physical abuse Pip endures here, so early in his childhood, also foreshadows the misery and pain he will later encounter among the upper classes. Moreover, closing the scene with â€Å"my ablutions were completed† (53) presents a resemblance between the simple bath and a ritual cleansing. The word ablution is most often associated with biblical allegories where priests were required to cleanse themselves before approaching the altar of God. Dickens’ word choice here seems to imply that Pip’s violent bath was necessary not only in cleansing him, but ridding him of the soil from his common life that might taint those in higher places. This bath scene serves as the novel’s first subtle but significant example that involvement with the upper class does not determine well being. The pain Pip endures from his first exposure to the upper class alerts the reader that an apparently positive development in his life (Miss Havisham’s invitation to her world) may have results to the contrary. Apart from physical abuse and torment, Pip’s first interactions with the wealthy class also cause him to suffer emotionally. The general magnificence and grandeur of Satis House exists not only as a symbol of the lives of the upper class, but as a symbol of Pip’s romantic perception of the upper class as well. In this aspect, it is also a source of misery for Pip and he realizes, â€Å"daylight never entered [Satis House]†¦ and under its influence I continued at heart to hate my trade and to be ashamed of home† (125). The ornate grandeur of Satis House has raised in Pip a new consciousness of his own low birth and common bearings. After his first visit, he even lies about his experience there, unwilling to sully his thoughts of it with the contrasting plainness of his every day world, for it must remain â€Å"far above the level of common doings† (72). Pip’s first visit to Satis House is a momentous event in his life. It raises in Pip an awareness of social contrast, robs him of his youthful innocence and sense of fulfillment and thus, further exemplifies the misery that is inherently linked with representations of the upper class. With the introduction of Miss Havisham and Satis House, the character Estella moves to the forefront of the novel as the ultimate symbol of Pip’s unattainable dream in Great Expectations, and the greatest cause of his sufferings. Ironically, Estella’s condescension and spite matches Pip’s feelings about himself in the world of Satis House. He accepts her condescension, â€Å"Why, he is a nothing but a common laboring-boy! † (60), without defending himself because he idealizes Estella and sorrowfully believes her to be right. This is particularly evident during times when the difference between their social classes manifest itself in the smallest things, â€Å"I had never thought of being ashamed of my hands before†¦ her contempt was so strong, that it became infectious, and I caught it† (60). Moreover, Estella consistently refers to Pip as â€Å"Mr. Pumblechook’s boy† (58), â€Å"silly boy† (266), or simply â€Å"boy†, using any word but his real name. This is a form of verbal abuse because it ultimately degrades Pip to a gender with no unique identity. Estella practices a deliberate cruelty on Pip that wins his deepest love and causes him to develop a passionate but unrequited devotion for her. This is one of the harshest examples of the pain and torment Pip must endure as he interacts with the upper class. Through these accounts, it becomes evident that social standing and wealth does not always determine well being. In fact, it may accomplish just the opposite-physical pain, emotional disturbance, and misery from the knowledge of one’s common bearings. Even when Pip becomes a gentleman and is received by society, there is a sharp decline in his confidence and happiness that accompanies this rise in social status. Pip’s unofficial entrance into the world of a wealthy gentleman can be marked as the event where he put on a real gentleman suit. Interestingly, Pip describes, â€Å"after this memorable event†¦ I felt rather like Mother Hubbard’s dog† (152). While a notable occasion such as this would have naturally allowed for happiness and celebration, Pip instead compares his elevated social standing to a common animal of a children’s poem. The demeaning effect of the suit, versus it’s intended dignifying effect, not only foreshadows the unsatisfactory life Pip will lead as a gentleman, but poses further doubt on the hopes and ideals Pip holds of the wealthy class.