Separation of Retail and Investment Banking Operations Essay

Separation of Retail and Investment Banking Operations - Essay Example The need to separate the two operations is the central focus of this paper, presenting arguments for and against the move in detail. Arguments in support of separation of retail and investment banking operations Financial crisis is not a new phenomenon for the banking sector in U.K and beyond. From time to time, economic hardships that have resulted in financial crisis have been observed around the world. Year 2008 global financial crisis adversely affected financial systems in various economies. This necessitated the need to manage risks in the financial sector, which is primarily dominated by banks. Following this and other affecting factors, regulation, control and reforming the banking sector is essential. Separation of retail and investment banking operations is a positive move to take in the context of the above pursuit. That is, regulation, control and reforming financial services providers. Separating retail and investment banks would mean that the each of the two becomes a s tandalone legal entity. It is important to note that retail banks handle short term and long term payments, accept deposits and offer credit services by lending funds (De Jonghe, 2010, p. 387). On the other hand, investment banks primarily deal with financial instruments. In this regard, they are also referred to as casino banks. With the separation, it would mean that adverse effects experienced by either of the banks would hardly affect the other. That is to say that if the investment banking operations experience huge losses, the resultant negative effects would hardly affect retail banking operations especially deposits. Splitting the retail and investment banking operations is an activity that would bring forth intensive regulatory frameworks in a bid to achieve the desired outcome. The regulatory frame work adopted would be one that addresses each of the two banks as a unit independent of the other. In the situation of financial hardships, the retail banking sector would recei ve the attention of both the government and the taxpayers. The investment banking sector on the other hand would be accounted for by shareholders and investors in the same context. As a result, the adverse effects of financial crisis can neither be transferred to the retail bankers nor the government when the investment banking sector is affected. Investment banks engage in highly risky financial instruments (Upper, 2007, p.64). Tax revenues are normally used to back banking operations with or without operational risks. However, separating retail and investment banking operations would ensure that the taxpayers’ money only backs retail banking operations. The involvement of investment banks in risky financial instruments and related activities would therefore not constitute any financial burden to the taxpayers. Over and above the alleviation of financial burdens to taxpayers in times of financial crisis, individual customers to both retail and investment banks would be at an advantage. In absence of the separation, deposits in retail banks are highly influenced by investment activities. This is more so if different parts of the same bank handles both retail and investment banking operations. With the separation, the opposite of this scenario is true. However, lending risks are inevitable, but they are relatively easy to address (Modigliani and Miller, 1958, p.261–

Macroeconomic Policies of UK Government in Achieving Objective of Low Essay

Macroeconomic Policies of UK Government in Achieving Objective of Low Inflation - Essay Example Mills argue that the United Kingdom has over the years had elaborate strategies to counter high inflation; the strategy targets the underlying rate of inflation (112). This strategy is justified because besides helping to control the level of inflation, it is also instrumental in checking the interest rate and the retail price index. In a bid to maintain a low level of inflation, the government has to contend with the unemployment in the economy. Currently, the rate of unemployment in the United Kingdom is 7%, while the inflation rate is 2.7% (Gordon 220). This rate of unemployment is not badly off as it shows that United Kingdom’s economy is at near full employment. High unemployment levels have adverse social and economic cost to the economy. Unemployed have low purchasing power, hence the rate of consumption is low (Gordon 220). The other characteristic of unemployed is that unemployed people lose their skills and morale with time; hence becoming less productive in the econ omy. The government is obliged to incur extra public expenditure to provide social benefits to the unemployed population. Finally, the adverse effect of high employment rate is that it results in increased cases of social evils such as crime, prostitution, and vandalism. In a bid to cushion the economy from inflation, the United Kingdom’s government permits some level of inflation in the economy. Striking a balance between inflation and unemployment brings about the concept of Philips's curve. Philips curve suggests that there exists a tradeoff between inflation and unemployment. As the UK government tries to thwart inflation, the rate of unemployment also goes up as shown in Figure 1. This is the case because the two macroeconomic elements have opposing... This paper analyzes the complex interrelationships between certain sets of macroeconomic policies in order to achieve opposing planned objectives of low inflation, employment and growth rate. In a bid to maintain a low level of inflation, the government has to contend with the unemployment in the economy. Striking a balance between inflation and unemployment brings about the concept of Philips's curve. Philips curve suggests that there exists a tradeoff between inflation and unemployment. As the UK government tries to thwart inflation, the rate of unemployment also goes up. This is the case because the two macroeconomic elements have opposing fiscal and monetary policies that are used to fight them. Inflation requires contractionary economic policies while unemployment requires expansionary fiscal policies. During high inflation, the government is forced to reduce public expenditure and increase the interest rate to reduce the money supply in the economy. However, when the government reduces the amount of public expenditures or the interest rate, the level of employment will go down. The most practical level of inflation and unemployment should be 3%; this scenario means that the economy is at near full employment, and the prices of goods and services are stable judging by the consumer index price. The bank of England is responsible for ensuring that UK’s economy attain sound macroeconomic levels in terms of price stability, full employment, economic growth and equilibrium in the balance of payment.

The concept of hope has a significant role in nursing practice

The concept of hope has a significant role in nursing practice Introduction Hope is an integral as well as protective factor of every human life. The concept of hope has a significant role in nursing practice and patient care. This assignment discusses regarding the concept of hope, its meaning and characteristics with the support of various literatures. In addition, relevance of hope related to the nursing practice and the barrier to use this concept in current practice will also be explored in this piece of work. Hope is one of the necessary quality of life and lies into what to be expected out -of life as well as what the meaning of life for us is. Therefore this task explored the measures to instill hope in patients to improve their quality of life. Definition:- Hope is an essential aspect in health care practice because it is linked to individuals experience and recovery. The definition of hope is differed according to each authors view as they have given different concept about hope. According to Sullivan (2008) hope as a complex multidimensional and dynamic, a potentially powerful factor in healing, adaptive coping, and achieving quality of life during times of illness and loss. Hope inspires the person to put his endless efforts to attain particular goal in life. Stephenson (1991) concluded that hope is a basic human response that is essential for life. Moreover, it is a major component of human being which helps to improve the quality of life. Hope plays a crucial role in reducing impact of disease in patients and relatives. Hope is one of the necessary traits of a successful life (Cassel, 2008). Thus, hope is internal forceful feeling of a person to achieve target in future. According to Hinds (1984) Hope is the degree to which an indi vidual believes that a personal tomorrow exists and also it encourages the person towards the achievement of requirements. Adopting hopeful attitude is an essential part of the nurse role. Nurse should be trained in how to inspire hope in hopeless clients. It is considered very effective during the prognosis and treatment. According to Cornelius (2008) hope is multi dimensional part of religion energies provides comfort to individuals experiencing personal challenges. It mean hope is element of faith provide all comfort in the individuals life and challenge the personal experience. Hope is necessary for human life. Human beings have a possible future through expectations and participations. According to Clarke (2003) hope is essential and important feature for every person in their life. According to Li (2000) it is an important process to re-establishment or conservation of ones fine living being. Moreover, hope has a power to lit a light of expectation in the patients and it can i nfluence patient who are seriously or terminally ill as they think there is no hope and give awareness about how they live their lives. Nurses should give more importance to hope instead of hopelessness even in the patients. According to peoples conviction, everyone can lead a worth full life if they have hope even for the healthy as well as the ill persons. According to Moore (2005) hope is an intentional movement toward an object which can provide the maximum out come. . Hope was largely considered to be a positive concept that can make a difference to people lives and it also described as an experience, emotion or need. In addition, hope is an energy sourced from a sense of interconnectedness with the self, others and powers beyond the self (Clarke, 2003). There are many factors such as chronic serious illness or disability, a period of personal difficulty which helps to maintains powerful hope in their life. Thus, hope will help to meet any difficulties which come across and als o helps to enhance the inner strength. Besides, hope is an emotional feeling and belief. Hope is characterized by an intentional movement a preexistent object, a movement that presupposed the hoping subject has perceived the hoped for object either through the sense, through an estimative faculty or through the intelligence. Hope and faith helps to attain the recognized goal and empower survivors to dynamically engage in rehabilitation. Further, hope can be considered as keystone of faster recovery of disease, even though, many authors mainly focusing the role of hope in rehabilitation stage of the patient. Relevance Of The Concept To Practice:- The concept of hope plays a vital role in the nursing practice, as it improves the spiritual well being and the quality of life, which are the meaningful dimensions of the patients life. Hope can be viewed as a holistic experience, which consists of three primary dimensions like personal, situational, and interpersonal. Hope is one of the obligatory factors in the survival of the patient conditions. According to Jevene and Maguire (1999) hope is a relevant idea for the nursing care and can be viewed on the basis of three extents, meaning, risk and caring. The research literature has recognized hope as an influence on effective coping during times of loss, suffering and uncertainty. Hopelessness is commonly associated with increase incidence of physical illness, depression and suicidal ideation (Carson et al, 1990; Hockey, 1993). Meanwhile, hope enhances well being and reduces the disease period. According to Henner (2006) medical intervention and maintaining hope is ethically appropr iate when there is a reasonable chance that medical procedures will be effective and their out come will be meaningful in terms of patients life. Thus a timely and appropriate explanation of the medical procedures can encourage patient to develop hope that can assist him for wellbeing. Hope is both remedial and curable factor in patient care and treatment and it has also restorative effect on the patient health outcomes (Watson, 1979). Therefore, the concept of the hope has positive effect on the treatment process and the nurse can inspire hope in the patient by maintaining good rapport and giving relevant information about the disease condition. In addition, hope is considered as an essential psychological factor in the recovery; however, many individuals with severe mental illness frequently report feeling of hopelessness. In addition, According to the American Nurse Association (ANA, 2003) Nursing is the protection, promotion, and optimization of health and abilities, prevention of illness and injury, alleviation of suffering through the diagnosis and the treatment of human response, and encourage hope in the care of individuals, families, communities and population. Nurses play a vital role in patient care by enhancing hope as well as optimistic attitude throughout their life. . Moreover, nurse can provide optimal care to seriously ill patients especially in their area of duty. The relationship between patients and nurses were significantly related to instillation of hope. Various studies related hope explained that, both healthy and sick people necessitate hope since it helps everybody to look forward happily towards the future. Hope is illustrating as a basic human need and has a possibility of good out come for ourselves or someone to close us such as hoping for life over death. The light of prospect aids to remove hopelessness and show the importance of life. Hope is identified as an important part of recovery and nurses have a pivotal role in facilita ting hope to patients and their families. Numerous barriers can be identified while instilling hope to the patients. The nurse has to overcome these barriers before inspiring hope to provide maximal care to the patient. The two most frequently cited hindrances were that the institution did not allow the nurses to change client care procedures and did not offer adequate time to provide appropriate care, ways or measures to put into practice. According to Funk et al.(1991) other barriers which prevents the use of concept in practice setting includes lack of time, motivation, confidence and negative attitude. These barriers need to be overcome through adequate communication, trustful relationship with patient and the family and adequate psychological support. The effective strategies to overcome these barriers will require a combined effort from the nurses by education, research, administration, and the clinical practice. Conclusion:- Hope is a multidimensional concept which strength our ideas and values. Hope is also an expectation of future that is good and is based upon a sense of personal ability, psychological well being and the meaning in life as well as a good judgment of the possible. This task assisted to get an awareness regarding the concept of hope as well as its characteristics. In addition, this assignment aided to know the relevance hope in nursing practices, various barriers occurs while instilling hope and the measures to overcome these barriers. To conclude, hope is an essential factor which assists all individual to improve their quality of life by enhancing confidence and positive attitude towards the future. Word count -1441

Satire :: Literature Analysis, Art, Informative

Satire is a literary work in which the follies of its subject are attacked through irony, derision, or wit, usually to fulfill a corrective purpose. Those who satirize are called satirists. Satire is an art, and while making a point, it should do it in such a way that the reader doesn’t feel assaulted, or moralized. No one likes a moralizer. Satire’s more eye opening than judgmental, and is conveyed through distortion, exaggeration (as well as understatement), paronomasia, ambiguity and innuendo, comparison and zeugma, similes and metaphors, oxymorons, and parables and allegories. Satire has existed since the beginning of human stupidity, or fault. Among the earliest records discovered from the B.C., there have been forms of social commentary. Greek playwrights would incorporate parodies into their plays, bards from the middle ages would sing of society’s defects, by the 17th century, satirical books were published and sold. Nowadays, satires exists in various forms, such as The Simpsons, Spike Lee films, and The Onion. There are three main genres of satire: Horatian, Juvenal, and Menippean. Horation satire is usually good natured, Juveanlian satire is a bit more hard core, and Menippean humor is chaotic and disorganized, with no form of prose. There’s an idea that’s been progressively formulated, and that’s that satire needs to be humorous. This isn’t true, however, that is how it’s displayed today. The humor of satire isn’t upfront—it’s subtle and deadpan. Insane things will be said and done and the joker will be utterly earnest throughout it. Buster Keaton was a straight comic, barely smiling during his films, Ali G has the most outrageous interviews with celebrities and politicians and, somehow, doesn’t crack up.

The Role of America at the End of World War II

The role of America at the end of World War II was where the origins of policing the world originate. America had been engaged in a very costly war in terms of dollars as well as lives. But, despite the expense the United States came out of World War II better than any other nation that was involved. The Second World War was a battle between the Allied and Axis Powers. The Allied Powers consisted of the United States, Great Britain, the Soviet Union, China, and France. This war was seen as the fight against Nazi Germany, and therefore resulted in a majority of the battles fought on German and Russian soil. The aftermath left the Soviet Union in bad shape. Close to twenty million Russians had died fighting the war, which accounted for about eight percent of their population. Conversely, none of the fighting was done on American soil, and while the United States suffered in terms of casualties it was nothing compared to the loss Russia had endured. Because the war would not end ! until the Axis Powers fully surrendered to the Allied Powers, the United States was forced to use the first atomic warfare in history. The atom bomb would later serve as America's greatest possession. Stalin, the Premier of the Soviet Union had always distrusted the American and English intentions. Because of Stalin's aggression and attitude pertaining to Soviet influence on Europe, the postwar stance on Russia had turned into a standoff. This became the origin of the Cold War. The Cold War, seen as a battle between communism and capitalism, was â€Å"in reality a more complex struggle over a broad range of ideological, economic, and strategic issues. † (Henretta, 868) Over the next several years the United States would spend more money on military and defense than ever before. Several measures were taken to ensure that the same mistakes at the end of World War I would not be repeated. The first in a series of measures was a postwar conference involving President Truman and the Soviet Foreign Minister, V. M. Molokov, where Truman controlled the entire meeting and basically scolded the Soviet's for not honoring agreements on Poland. Truman â€Å"told the Russians just where the got off and generally bossed the whole meeting. † (Henretta, p. 869) This symbolized America's strong-arm stance against communism and signified the position we would hold throughout the Cold War. The next step in Truman's agenda was to work with Congress to pass the National Security Act of 1947, which was designed to strengthen defense operations. This act created a single Department of Defense, and created the Central Intelligence Agency, or CIA. These two new agencies acted as the first step in atomic warfare management. Continuing to act as police of the world and leader of capitalism, Truman drafted the Marshall Plan. The Marshall Plan, which complemented the Truman Doctrine, â€Å"was a program of large scale economic and military aid to Europe. † (Heretta, p. 71) Considered by some, this was the most â€Å"innovative piece of foreign policy in American History. Where over the next four years the United States contributed over $12 billion to a highly successful recovery effort. † (Heretta, p. 874) The Soviet Union stilled commanded a blockade on highway, rail, and river traffic to West Berlin. As a result, the United States responded by entering into a peacetime military alliance; this being the first time since the American Revolution. The North Atlantic Treaty Organization (NATO) a project costing $1. 3 billion, enabled the basing of all four United States Army divisions into Western Europe. Twelve nations agreed to sign this pact that stated â€Å"an armed attack against one or more of them in Europe or North America shall be considered an attack against them all. † (Henretta, p. 875) Consequently, a few months later, Stalin â€Å"lifted the blockade which had made the city a symbol of resistance to communism. † (Henretta, p. 875) Between the creation of NATO, the National Security Act and CIA, and the Marshall Plan, America was dictating their position with Russia and communism. These measures made it possible for Americans to become more comfortable with the Cold War. While all of these governmental policies were being put into action, Americans were settling back into the ideology of family and free enterprise. The post-war period became one of the most exciting in American history. With the rising economy and feeling of consumerism, Americans were rebounding from their efforts in World War II. Capitalism was on the rise and the â€Å"Apple Pie† portrait of middle class suburban families was shaping the country. America was now the wealthiest country in the world and Americans had â€Å"accumulated savings of $140 billion† in 1945. Over the next two decades the gross national product more than tripled,† (Henretta, p. 904) signifying prosperity. Between 1945 and 1960, the gross national product would grow from $213 billion to more than $500 billion, while real income would rise 25 percent. Included in these figures was the percent of American families owning homes, which grew from 43 percent to over 60 percent in this same time period; this created the suburban explosion. This suburban lifestyle was intended to symbolize the superiority of capitalism over communism and imply that the American way of life would win the Cold War. (Henretta, p. 903) Americans were again beginning to see the capitalist society they fought for, and the confidence level of the country continued to rise throughout the 1960's. The people cannot create a great nation themselves; great leaders must direct them. Besides the three Presidents who led America throughout the end of World War II and through the Cold War, there were many influential voices that helped to shape the views of the public. Among these influential people was a man named George F. Kennan. He was a member of the United States embassy to the Soviet Union and author of the â€Å"long telegram† which was sent to the heads of state in Washington D. C. In his telegram, Kennan described the Soviets as insecure, inferior, and less advanced than Americans. â€Å"As Russia came into contact with the economically advanced West, fear of more competent, more powerful, more highly organized societies,† (Gorn, p. 229) was the general message Kennan was trying to get across. Because he saw the country from the inside Kennan also believed the United Sates should † pursue a policy of firm containment†¦ t every point where the Soviets show signs of encroaching upon the interest of a peaceful and stable world. † (Henretta, p. 870) This opinion and idea of the relationship between the United States and Russia should have been widely accepted by Americans. They backed this idea of aggressive behavior, rather than a passive approach to the Cold War. Conversely, postwar liberal such as Henry Wallace, â€Å"a Progressive Party leader, continued to seek cooperation with the Soviet Union and defended the participation of Communists in their organizations. (Henretta, p. 885) These ideals were quickly silenced. The American majority, being extremely anti-communist, felt relations with the Soviet Union should be harsh and firm. This period introduced American dominance in foreign policy. The ideals of personal freedom and opportunity were the driving forces behind Western philosophy throughout the Cold War. Not only were these principles showcased, they were set as the benchmark of equality for the human race.

Discrimination Concerning African Americans Essay

Differences in race lead to divergent levels of economic development within the United States. Analysts often try to explain this phenomenon by observing a specific ethnic group’s tradition and cultural ideology. Economists expand their analysis on the economic behaviors of African Americans by taking into consideration personal histories and value systems of the group under study. American families measure economic status in terms of income, and factors associated with material security as a whole. These factors may consist of health care, college funds, and retirement plans. However, African American families lag well behind when conceptualizing economic development under these terms. The reason is due to numerous instances of discrimination that occur in the U. S. Many of America’s public policies aid in the underdevelopment of non-white families. Increased economic development within America is the key to upward political and social mobility. If minorities are denied inevitable rights to equality, access to economic development becomes a highly difficult process. Despite America’s idealized view on equal opportunity, it is valid to assume that economic security has been limited on the basis of race. Therefore, it is important to investigate why white American families are economically better-off than non-white American families. One must take into account aspects of political participation, education, and the number of children a family has in the home in order to understand this research question. Contemporary Viewpoints: The lack of political participation of minority groups is a prevalent issue within the United States, explaining why non-white American families are less economically developed when compared to white American families. According to Douglas S. Massey (1995), minority families increasingly speak languages and bear cultures quite different than the established norms within the U. S. regime. He has found that ethnic groups carry their customs into new generations, leading many non-white families to become displaced and impoverished. Brinck Kerr and Will Miller (1997) believe that it is necessary for non-white American families to participate in elections in order to obtain equal representation that they are now lacking. They go on to say that political representation is the key to higher employment levels, and is a significant determinant to the minority share of professional positions. William H. Frey (1996) finds that immigrants usually encounter highly stratified society characterized by high income inequality leaving little room for upward mobility. In addition, Paula D. Mcklain (1990) assumes that non-white American families will continue to reside in low economic subcultures that are institutionally incomplete if they are represented at much lower ratios relative to the population portions of whites. Susan Welch (1990) has found that minority groups have not even achieved half their population proportions in political elections. These numbers are even lower than what they were a decade ago. She states that other factors that lead to low political participation within minority groups is that a substantial number of non-white American families are not citizens, and therefore are not eligible to vote. Also, Massey has found that America enacts policies that hinder the socioeconomic status of immigrants for they are underrepresented at virtually all levels and institutions in United States government. Moreover, Friedberg and Hunt (1995) have found that non-white American families receive less benefits than white families because of geographic segregation within the community. The various dispersion of minority families in different low-income areas within the U. S. makes it difficult for these families to be represented proportionally. Consequently, Rodney E. Hero and Caroline J. Tolbert (1995) believe minority families can now be easily manipulated by government because they are not equally accounted for. Therefore, non-white American families are not able to take advantage of economically developed determinants such as health care and retirement funds. The inscription of the Statue of liberty expresses to the world to â€Å"give me your tired, your poor, your huddled masses yearning to breathe free†¦. † America continuously contradicts itself on the validity of this concept due to the increasingly economic tension between Caucasian and non-white families. Friedberg and Hunt (1995) give the example of Proposition 187, which makes many non-white American families ineligible for certain services such as public health. Non-white American families are not given the opportunity to take advantage of benefactors the U. S. offers to white American families. Therefore, Non-white American families lack of political participation, and unequal representation in governmental institutions and legislative bodies, leads them to be less economically developed than white American families. Education is another obstacle to economic development that non-white families face. Education is a vital tool to economic security. However, Melissa Marschall (1997) has found that current policies demonstrate minorities have been denied equal access to education. She has found that assignment systems based on assessments of language deficiencies or other individual needs are used to separate non-whites from whites. According to Jeffrey J. Mondack and Diana C. Mutz (1997), inequitable school financing is equally detrimental to non-white students. Funding for public schools comes from property taxes. They go along to say that predomintly non-white schools tend to be in central inner city school districts which have a smaller property tax base. In addition, the Office of Civil Rights has identified practices that are termed â€Å"second generation school discrimination†. Practices such as ability grouping, suspensions, and tracking may appear on the surface to be normal educational practices. When examining these components closer, Brick Kerr and Will Miller (1997) have found they have a negative impact on minority students. Ability grouping is a form of segregation that separates minority students from whites. They have found that before even attempting to teach non-white students, they are diagnosed with having linguistic or intellectual problems. The students are therefore required to take special and bilingual classes, making it difficult for them to succeed. According to Robert E. England (1986), non-white students are many times pulled out of regular classes and placed into bilingual classes only on the basis of ethnicity rather than their understanding of English. Brick and Miller go on to explain that suspensions are a second tactic used to encourage the failure of minority students in school. Non-white students are given more harsh disciplinary sentences than white students. Moreover, studies show that the ratio of minority students kicked out of school is disproportionately higher than whites, making the students more likely to drop out. Marschall has found that schools also advocate differences in ability grouping and discipline, leading to distinctions in tracking between non-whites and whites. The majority white students in high ability groups are often counseled to choose college preparatory tracks. However, minorities in low ability groups are counseled into vocational or general tracks, making them less likely to attend post-secondary education. Mondack and Mutz believe that the overall pattern of racial inequality the school system has created makes non-whites less likely to receive a quality education than whites. This truth makes it difficult for economic development to occur within non-white American families. The number of children in a family lead to increased poverty levels and low economic development within non-white American families. M. Klitsch (1990) has found that minority women have children at an extensively higher rate than that of white women. Also, he states that non-white women represent a small percentage of the population, however they account for a greater number of births. Alejandro Portes and Cynthia Truelove (1987) go on to say that non-white families are generally poorer than white families because of the higher number of children in the home. This leads them to be more likely to live below the poverty line. In addition, Genevieve M. Kenney and Nancy E. Reichman (1998) have found the population of non-whites increases faster than whites every year due to high fertility rates. Similarly, the two have found that fertility rates of non-whites families living in impoverished communities is almost double compared to white families. Klitsch has found that non-white families have an estimated 5. 5 people to a household, while white families only 3. 8. Therefore, these high rates lead to low socioeconomic status, and limited opportunities to increase economic security. According to Kenney and Reichman, the high fertility rates are due to low percentages of minorities who use contraceptives. They have also found that non-white women are less likely to have an abortion than white women. One might view this as a positive aspect. However, Portes and Truelove believe that one must take into account the over a quarter of minority families who have an income below the federal poverty line, which is almost one half greater than those of white families. Therefore, the high number of children within non-white American families make them more likely to experience economic deprivation than white American families. There has been an abundance of scholarly research previously conducted on the economic differences between white and non-white American families. They usually consist of data sources such as the U. S. Immigration and Naturalization Service, and the U. S. bureau of the Census. The Foreign Born Population of the United States and Statistical Reports are used with the previously listed sources to compare ethnic groups (Friedberg and Hunt, pg. 5). These databases yield cross-sectional designs that develop into time series reports in order to make assumptions on variables dealing with GNP and income, proving distinct differences in the races under study. For instance, researchers assume that white families are more economically developed than non-whites. This is because the average white American family makes $44,000 a year, and the average non-white American family does not make half this amount (6-7). These figures are valid in drawing conclusions about correlative relationships, satisfying important ideological factors necessary to study when dealing with the dependent variable of race. A more effective method of analysis was a study derived from interviews in a low income Los Angeles county. The participants were white and non-white females. The study was conducted between January 1984 and May 1985 (M. Kitsch, 136-137). In addition, the sample consisted of a three-stage cluster of census tracks, blocks, and household addresses. This cross-sectional design embodied research dealing with fertility rates of different races. The minority women proved to have higher fertility rates in low income sectors, leading Klitsch to question the different ways non-white American families conceptualize economic development. Non-white American families have to deal with numerous accounts of racial discrimination. It is difficult for a non-white American family to become economically stable in terms of income and security plans. The reason is due to being a minority in a predominately white America. Therefore, non-white American families are less economically developed than white American families because: H1 non-white American families are less likely to participate in elections than white American families. H2 non-white Americans are more likely to be discriminated against in school than white Americans. H3 the more children in a household, the more likely a family will be economically deprived. Implications and Conclusion: Education, political participation, and the number of children a family has all affect the levels of economic development within the household for white American families. Even though education levels has a stronger affect toward higher levels of income, when the three variables are measured together, they are all highly statistically significant. In non-white American homes, education levels appears to be the key determinant of their economic status. Further test need to be measured in reference to how the number of children a family has and political participation affect the economic security of non-white American families. With this, the above hypotheses will prove to have more validity. However, in both cases it was important to measure education, the number of children a family has, and political participation together in order to understand the affect these variables have on each other, and how this affect leads to higher or lower levels of economic development within the family. These multivariate studies are also important in predicting the affect the independent variables will have on total family income in the future. It can be assumed that the highest year of school completed will continue to have a strong affect toward economic development in the future for both white and non-white American families. In addition, the number of children in a white American family and their political participation are significant variables to measure when determining their economic standpoint in future years to come. There are alternative approaches to identifying explanations to why non-white American families are less economically developed than white American families. One example is the difference in income between non-white and white American families who have single parents and ones that have two parents. Another alternative approach is identifying education as only an antecedent variable, and observing how it relates to occupation, the true independent variable under study. From here, one can observe how economic development is related to a person’s occupation within the home. As anyone who walks the streets of America’s largest cities knows, there has been a profound transformation of different ethnic cultures within the United States. The rapidity of the change has led to growing competition of economic development between white and non-white American families. This competition has lead to ethnic prejudice and discrimination as the United States continues to assimilate into the melting pot for the American dream. Political participation, education, and the number of children within the home are variables that allow the transition to become a less arduous process for white American families. However, if non-white American families continue to do poorly in terms of economic development because of these variables, non-whites will continue to lag behind the income scale in comparison to whites. Research along these lines will lead to the study of relative differences between ethnic cultures. An example is the discovery of why almost half the number of minorities return to their country of origin after experiences of economic injustice. Previous research may also benefit other analysis in the field of economics by itemizing fertility rates in terms of the higher number of non-white American families who lack the finances to properly nourish their children. These new variables along with my research can in time become valid determinants in explaining why white American families are economically better off that non-white American families.