0
It can, if two additional conditions exist. 1)Banks have to be willing to lend the money, and at a low interest rate. 2)Companies have to see that demand for their products exceed their capacity to produce the product, so they will borrow to expand their manufacturing capacity and make money. This creates more jobs.
Right now banks aren't lending
, and consumers demand doesn't justify borrowing to expand capacity. The question is how do we get people buying and how do we get bankers lending. The answer is banks need borrowers with collateral. There are few borrowers with collateral
. How do we get people buying? Wages need to increase.
Still curious? Ask our experts.
Chat with our AI personalities
Devin
Taiga
FranAdd your answer:
Earn +20 pts
Importance of studying microeconomics?
Because you learn a lot of skills and knowledge thatyou can apply to other jobs or to your personal life.Learning about interest rates, exchange rates,economic indicators and equity markets can help youmake better decisions about investing and obtaining mortgages.
Do big companies create jobs?
yes they do i work in one
How The Home Depot impact Georgia's economy?
It helped create more jobs.
Was the American economy good in the 1990s?
The 1990s was the longest period of economic expansion in the history of the United States. The stock market boomed, unemployment was low, millions of new jobs were created, wage growth was healthy, inflation and interest rates were low, and the Federal government actually ran a surplus for three years.
How might the expansion of these facilities impact growth and development in Savannah?
It will create new jobs.
