Economics:The Driving Force of Business
Thedriving force of business
Inastudy of wealth distribution among the white, black and Hispanichouseholds, showsthe variations in the level of income is broughtabout by differences in saving behaviors, disinclination and higheryielding financial assets.However, results from theanalysis mayconsider some of the greatestdisparities of resources among ethnicgroups that cannot be explained by demographic factors.
However,lower financial investment rates in the society market results in amuch slower paced wealth creation in minority households. That leadsmost of the finance professionals and great community leaders toinvest all their efforts struggling to make the present income higherinstead of being concerned with building wealth. Eventually, this hasled to financial brokers creating a cultural bias against investingin more risky financial assets. Therefore, this calls for leadersacross the ethnic groups to encourage people to learn more aboutfinancial markets as they approach middle-class economy in years tocome. (Choudhury, 2001)
Thatcan only be done by opening more economic opportunities to discourageminority households comparatively in a positive way hence narrowingthe wealth divide.
Theissue of imbalanceon the level of income between the ethnic groupshas increased mostly in developing countries.Thus reflecting a rangeof factors that include globalization and technological change andmore so striking the level of progress in tax and spending policiesat most. In this adverse economy, fiscal policy has played asignificant role of trying to reduce income inequality more so theaspect of expenditure. Choudhury further explains that this graduallyimproves the standard rate of each and every beneficiary of someamount of income (2001). The policies set by the government maysometimes also act as a threat mainly to the members of the communitywho among the less fortunate ethnic groups and directly discouragethem from engaging in excellent investment opportunities. Theseopportunitiesare left for the haves to benefit from them as thehave-nots continue to lavish in poverty. Therefore, the policies setshould try toavoid an imbalance between ethnic groups so thateveryone can have an equal playing field in terms of availableopportunities.
Avariation in income among the ethnic groups as a major economicproblem callsupon some standards to apply in trying to control thesituation on time to make it reliable. The measures include making iteasier to start and join unions that contribute to investmentpurposes in both short-term and long-term has well. Apart from thatthe employment board should make sure that it stabilizes thedistribution of employments throughout the ethnic groups to try andreduce the rate of unemployment. The government should also in itsways try and relax the licensing rules to motivate the lessfortunate.It should also ease up the zoning restriction which acts asa great barrier of development. If put into place within a shortperiod of which it is possible, then the issue ofunsustainabilitywill gradually decrease.
Involvementon principles of economics.
Accordingto economic policies,variation of income among ethnic, groups can beseen to involve some of the economicprinciples.Hence brought out bythe rational behavior of humankind who tends to think of the margin,in that they will try to maximize benefits at the lowest costpossible. People will like more of the incentives and bonuses whichmay lead to reduced economic growth.To control these members of theeconomy should improve trade that will boost the living standards ofindividual. (Mankiws, 2014)
Itis, therefore,necessary for the government, community members and thesociety towork and implement positive changes that will diminish theissue of variations in income among ethnic groups.
Mankiw, G. (n.d.). Mankiw 2e. Retrieved October 26, 2014, fromhttp://www.swlearning.com/economics/mankiw/principles2e/principles.html
Choudhury, S. (2002, January 1). Racial and Ethnic variations inWealth and Asset Choices. Retrieved October 26, 2014.