Income Inequalities and the Financial Market

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Income Inequalities and the Financial Market
The U.S. financial market plays a vital role in the continued growth and development of the American economy. It has long been influential in the industrial economy, which majorly focuses on the production of commodities rather than services. A market should be present for the produced goods to be consumed. This cycle has been and still is the lifeline of the American financial sector. In 'Debtor Nation: The History of American Red Ink,' Louis Hyman (2011) explains the vital role credit services played in the American economy's growth and development.
He explains that financial institutions such as banks (which housed large amounts of idle money) realized that when loaning money to consumers at moderate interest rates, the latter would pay them back. Consequently, the consumers will buy more commodities from producers with the loans, increasing the profits of both the banks and the producers. However, Hyman argues that credit services did not apply to all citizens, especially in the 1900s. The U.S. has, for a long time now, been faced with the 'White Problem.' The whites in the country have always viewed the blacks as a problem rather than fellow citizens entitled to equality and justice in the various spheres of society.
Lipsitz (1995) explains that the possessive investment in whiteness is rooted in European settlers' actions in North America. The legal and colonial systems were used to legitimize slavery, labor exploitation, racial discrimination, and the appropriation of the lands belonging to native Americans and the negros. He further adds that racism is not only a lingering impact of slavery but also a newly created aspect of the liberal social democratic p...