A Model Micro Economy

The premise of this argument is to show that not only do competitive markets create the lowest possible price at the highest possible output, but that it creates a better distribution of income and less disparity. An example of this,

There Chinese-Canadian population that has strong numbers, 409,530, in Toronto. I believe this population, for the most part, to be a model population in terms of increasing the overall and average standard of living through a great number of small proprietors. Sole proprietors are the best living example we have in our modern economy of perfect competition. Although I have not done any empirical evidence, which is a VERY important point to make before hand, I believe the percentage of sole proprietors per total population to be the highest amongst visible minorities, possibly even non-visible minorities. Although I cannot speak for an entire race of people, I believe the chinese to be conservative in nature (not Conservative necessarily), but at the same time have an aggressive and ambitious personality to own, operate, and make profitable, a small-medium business. There are of course deviations from this generality; those being that the majority are of the third (and bottom) level of Adam Smith's model, providing wages for labour (like most of us), and the second being those who are heads of large organisations that they built from the bottom - up.
There is less disparity amongst the Chinese, in my opinion, due to their high participation in reasonably profitable operations. It is rare to find a Chinese-Canadian two-income family that is making $1,000,00+ a year in gross/net (if your lucky) income. Accompanying this is the rarity in finding a Chinese-Canadian two-income family that falls at worst, below the poverty line, or at best in the bottom 25% (pure educated guess) of the income distribution. This implies that they have will, arguably, have a higher mean (marginally) income but most definitely have a smaller variance of income. I would demonstrate through the normal distribution graph (use your imagination) by saying that the a greater majority of the Chinese-Candains would fall with in 1 standard deviation of mean (population) than of most other ethnic backgrounds.
Accompanying this is the idea of velocity and ownership of money. I believe the Chinese-Canadian community to be very close-knit in terms of their circulation of money. I guess to say that there is a high propensity that once money gets into the hands of a Chinese-Canadian, it will stay in the hands of a Chinese-Canadian, just not necessarily the same person. This is most likely, as all close communities are, brought about by the matrix-like language barrier that exists in the great ethnically diversified city of Toronto. Which, in my opinion, is perfectly okay; both the diversity and the fact that people stick to those of their own language in business and in life.
Back to the point...
The Chinese-Canadian community is a model in terms of spreading the income evenly, but through markets and exchange, throughout the community by way of limiting their greed but never ceasing to be ambitious. Although there is still a disparity (due to chosen level of participation) in the income of the individuals, they, obliviously, have developed and inherent aspect of "leave no one behind". Take that left-wing.

To be continued...


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