how do big industrial houses creat employement opportunities for villagers?
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There are a number of ways to create more employment opportunities.
1. The most mentioned strategy would be expansionary fiscal policy.
The Government increases its spending and in turns increases the aggregate demand of the economics. Hence, the social output level rises and more employment opportunities are created.
For example. The New Deal led and implemented by Roosevelt has spent enormous amount of resources on building public infrastructure such as dams and highways. These projects provided numerous jobs for construction workers, project managers, manufacturers and engineers.
New Deal also provided much financial assistance to the poor by giving out direct payment. It increased the needy citizens' purchasing power. As these people had higher propensity to consume, the overall demand of the economics rose drastically. Therefore, social output as well as employment opportunities shot up.
This policy subjects to the availability of government reserve. If the government is already facing deficit, such policy might cause even more problems in the future. On the other hand, if the government has accumulated much reserve, this policy can be a good option.
2. Another popular strategy is expansionary monetary policy.
The central bank can lower interest rate. Lower interest rate discourages saving and provides greater incentive for consumption and investment. Hence, aggregate demand rises. Again, social output and job opportunities increase.
1. The most mentioned strategy would be expansionary fiscal policy.
The Government increases its spending and in turns increases the aggregate demand of the economics. Hence, the social output level rises and more employment opportunities are created.
For example. The New Deal led and implemented by Roosevelt has spent enormous amount of resources on building public infrastructure such as dams and highways. These projects provided numerous jobs for construction workers, project managers, manufacturers and engineers.
New Deal also provided much financial assistance to the poor by giving out direct payment. It increased the needy citizens' purchasing power. As these people had higher propensity to consume, the overall demand of the economics rose drastically. Therefore, social output as well as employment opportunities shot up.
This policy subjects to the availability of government reserve. If the government is already facing deficit, such policy might cause even more problems in the future. On the other hand, if the government has accumulated much reserve, this policy can be a good option.
2. Another popular strategy is expansionary monetary policy.
The central bank can lower interest rate. Lower interest rate discourages saving and provides greater incentive for consumption and investment. Hence, aggregate demand rises. Again, social output and job opportunities increase.
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Big industrial houses create employment opportunities for villagers by say that you will get a job and it will earn you money
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