Entrepreneurship: A Big Factor in Income Differences.

Choi, Young Back. "On the Rich Getting Richer and the Poor Getting Poorer." Kyklos. Blackwell Publishing, June 1999. Web. 3 November 2011.

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In the article, "On the Rich Getting Richer and the Poor Getting Poorer", Young Choi evaluates the perception on whether or not the rich are getting richer and the poor are getting poorer. She focuses on one main example throughout her article which is Entrepreneurship. The article goes into detail about how Entrepreneurship may be the main cause on how the rich continue to get richer and the poor keep on getting poorer. The author studies that many of the rich start businesses where they hire more people that surround them, like other rich people that they know, etc. They generally do not branch out and decide to hire someone who is outside of their circle of the wealth. The rich influence many other people and it causes the other people who are not well-off to slip through the cracks. She also goes into the depth about how entrepreneurship can also benefit the income gap. Many people who are significantly well off may start businesses and the people who are in need of supporting their families and themselves are able to take the jobs that they offer. Throughout her article of debating whether or not the economy is benefitted by the act of entrepreneurship or harmed, she concludes that it brings new opportunity to people and that is only a benefit.

This article shows a new perception to my research question. Choi talks significantly about how Entrepreneurship affects the income gap between the rich and the poor. It brings up the discussion on whether or not this may benefit the poverty levels in our society or harm them. The politics of equalization through taxation, redistribution, and regulation reflects how wide the income gap is. As he considers entrepreneurship as the most important factor in the process of creating and destroying wealth, and economic mobility, the article is a contribution to a theory of entrepreneurship. The idea of the rich getting richer and the poor getting poorer rests on a faulty understanding of the way the market economy works. This brings up a discussion in my research question on whether or not it is logical for the rich to hold jobs that other people who need opportunity are more than qualified to do. Choi concludes his article by stating that he essence of entrepreneurship is not the ownership of currently valued assets, and is not doing anything but to help our economy out by the discovery of opportunities. Many may argue this point on whether it benefits or harms.