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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.
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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.
Which department works to help Americans create jobs and grow the economy?
Department of Commerce
What are the rates for jobs in website design?
The rates for jobs in website design would vary. There are many different types of web design jobs and different people charge different rates for them.
What are reasons that mortgage defaults are increasing?
There are several reasons that mortgage defaults are increasing. The reasons are people losing their jobs, increased interest rates, and down payments.
Why are long term interest rates so important to the health of the economy?
AnswerLower interest rates stimulate business investment by borrowing and also to greater consumer consumption which can be inflationary. Lower interest rates also tend to boast the stock market because higher returns are found there. When productivity costs are lower, which is a result of lower interest rates, business is more competitive internationally and can sell more products abroad and this leads to a stronger currency. Higher interest rates are deflationary and dampen consumer spending. Long term rates are important because business trives when there are fewer uncertainties. A strong business infrastructure is essential to th health of the economy crearting more jobs and more wealth.
What made Steve Jobs interest in electronics?
why did steve jobs develop an early interest in electronics
How can the government affect unemployment rates?
The government policy in the employment is very affecting because the policy of the government are does very hard to do so on the employment..
Can recyclng create new jobs?
yes recycling can create new jobs!
How does one apply for jobs at Macy's?
Macy's has a jobs website which lists all of their current openings. You can simply browse or search the job opportunities that are available, and click on any jobs that interest you. If you find something you are interested in applying for, you can then create an account and apply for that position.
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.
What jobs has the highest cancer rates?
firefighters
Why did supporters of supply side economics believe that lower tax rates would actually result in more tax collected money?
Supporters of supply-side economics believe that lowering tax rates would create more jobs. The theory was that an increase in jobs would also help increase the rate of savings and investing resulting in more taxes coming in.
Pay rates for jobs in Vancouver WA?
Renovation carpenter
What is casual unemployment?
short term periods of unemployment between jobs
