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By Economics as Classical Mechanics (Reporter)
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People respond to incentives

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This is what I’ve got from the Internet on this phrase:

·       Incentive is something that induces a person to act [by offering rewards to people who change their behavior].

·       Because rational people make decisions by comparing costs and benefits, they respond to incentives.

·       Incentives may possess a negative or positive intention.

When the unrest in the USA and western countries fades away rational people will have to respond to numerous negative and positive intentions and to make many existential decisions:

- to reduce the risk of degraded personal and family safety;

- to reassess the short and long-term forecast of property the price due to geographical location and neighbors;

- to reassess the risks to business/job market;

- to reduce the risk to savings;

-  to provide conditions for better education and communication to children;

- many others
Considering the fact that the new unrest and related negative incentives are highly likely in the months and years to come I would not be so sure that the social stratification and self- and group-isolation due to racial/political reasons (which is the main driving force of the current unrest) will fade away.


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