The financial markets have a reputation for being distant and uncaring, but this is not always the case. Humanizing financial markets can strike a balance between corporate and individual interests. Some possible applications are provided below.
First, human needs can be prioritized in the design of financial markets. Consumer Financial Protection Bureau was created as part of Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to shield individuals from unfair lending practices. This demonstrates how the economy can be structured to put people first.
Second, monetary systems can be structured to advance monetary education. To be financially literate is to know how to handle one’s financial resources effectively. People can make more informed decisions with their money if they have a basic understanding of financial markets. To help people better understand the potential benefits and dangers of investing, organizations like the Financial Industry Regulatory Authority (FINRA) have created various investor education programs.
Third, transparent financial markets can be created. Fair and efficient financial markets depend on transparency. The SEC has implemented several rules and regulations to increase market transparency, such as the mandate that publicly traded companies provide investors with all material information.
At long last, financial markets can be shaped to encourage ethical behavior. Businesses with a strong sense of social responsibility will always keep the greater good of society in mind. Publicly traded companies are required to disclose their environmental, social, and governance (ESG) policies as part of the SEC’s efforts to encourage corporate social responsibility.
These measures will help bring about a more equitable balance between business and human interests in the financial markets. This will aid in making sure financial markets are equitable and productive places that encourage things like fiscal literacy, openness, and civic duty.
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