Sustaining traditional business models that provide jobs to local people is critical to economic growth and development. Public leaders with policy enactment obligations are encouraged to implement economic measures that improve profitability among organizations. This analysis presents vital conclusions and recommendations regarding Doronto’s new economic policy suggested to Mayor McNeill. The regulation aims at subsidizing hourly wage rates of food-cart business owners by $1 from $10. The city attracts many tourists during peak seasons, implying a steady market demand. Moreover, there are no entry barriers for individuals aiming at starting a food-cart business as the market depicts perfect competition attributes. Most importantly, the new economic policy suggested to Mayor McNeill requires strategic integration of control protocols to protect Doronto’s food-cart culture from the supply of substandard or low-quality food products.
Fundamentally, the new economic policy meets the mayor’s leadership objectives for the city of Doronto. Improving the food-cart industry will be critical in sustaining traditional cuisines that attract a significant consumer base of tourists. The mayor has positive goals for the city but requires objectivity to ensure that the new economic policy maintains the food-cart culture by ensuring ease of doing business (Wiens, 2018). Hourly wage rate subsidy in the policy would help promote the industry as more individuals will be encouraged to start similar businesses, as evidenced in markets with perfect competition. Consequently, the economic policy will present job opportunities to locals aiming at benefiting through enhanced profitability. Most fundamentally, the policy could affect food-cart entrepreneurs’ profitability if new entrants in the market supply substandard or low-quality food-cart products.
Moreover, the economic policy, which entails an hourly wage rate subsidy to food-cart businesses, should be guided by predicted scenarios if implemented. Social business attributes should influence economic policy enactment. Doronto, as earlier noted, has a food-cart culture that has sustained income earning sources for many local individuals. The industry has sustained its substantial market of tourists by ensuring quality and exciting cuisines. Therefore, an economic policy that would attract more entrants to the market can compromise consumers’ demand (Wiens, 2018). It implies that the hourly wage rate subsidy could result in uncontrolled food-cart businesses that affect profitability elements depicted in the perfect market industry. Mayor McNeill should be critical of the negative business impacts of an unregulated trade the products of which can affect consumers’ health among tourists visiting Doronto.
Additionally, there are vital conclusions imminent if the mayor implements the new economic policy. The food-cart culture has existed for many years in the city, and locals understand the market dynamics. Subsequently, locals are considered potential owners of the businesses implying the policy could impact many public members. Essentially, Doronto’s mayor should be aware of potential negative market outcomes of too many entrants in the food-cart market. Food products are considered sensitive to public health and require commercial regulation from such state agencies as the Food and Drugs Agency (FDA). Consumer protection acts would also present significant challenges to food-cart businesses selling cooked products. The new economic policy should guarantee the quality of commodities sold to visiting tourists. Most objectively, economic policies should protect the food-cart culture from the negative impacts of substandard products. Subsidizing hourly wage rates can attract diverse businesspersons, including those with intentions of exploiting consumers.
In conclusion, Mayor McNeill’s economic ambitions are progressive to Doronto’s growth and development. Enhancing the food-cart culture will be vital for protecting the livelihoods of many local owners of the businesses. However, the economic policy intended to subsidize hourly wage rates among businesspersons can adversely impact the market. The initiative will attract potential business owners into the industry as food-cart ventures in perfect competition with many business entrants. Consequently, the mayor must consider the commercial implications of too many entities supplying sensitive products to consumers. As a result, this analysis recommends that Mayor McNeill reconsiders implementing an alternative subsidy initiative for food-cart owners by ensuring relevance, consistency, and conformance in economic policies.
Cover Letter
TO: The Mayor of Doronto
STUDENT NAME:
STUDENT NUMBER:
DATE: 11th December 2020
SUBJECT: Subsidy Policy on Food-Cart Businesses in Doronto
Dear Sir/Madam,
I wish to present the following findings regarding the hourly wage rate subsidy intended to benefit food-cart business owners. The economic policy is considered strategic, but findings demonstrate vital considerations are required for sustaining the industry. The mayor of Doronto should consider involving all stakeholders in the food-cart industry within the local economy. Essentially, the subsidy policy should consider ensuring consumer protection among visiting tourists who consume food-cart products in Doronto.
Most importantly, this analysis is based on findings that present the city’s local economic attributes. The hourly wage rate subsidy will encourage more entrepreneurs into the industry characterized by perfect competition. Establishing business ventures across the food-cart industry requires certification or approval of products for ensuring consumer protection. As a result, Mayor McNeil should be critical of the subsidy policy and consider involving more stakeholders in the decision-making process.
As an expert in economic policies, I encourage you to assess the situation further regarding the effectiveness of subsidizing the hourly wage rate among food-cart business owners. Dynamic economic factors will be instrumental in ensuring the relevance and reliability of a long-term subsidy policy. I am hopeful that you will make significant considerations before making economic changes in the food-cart industry.
Yours truly,
Student Name and Number
Reference
Wiens, T. B. (2018). The micro-economics of peasant economy, China 1920-1940. Routledge.