how to create more and better employment
Answers
Answer:
here's ur answer dude
Explanation:
Here are the eight job creation strategies that give the most bang for the buck.
- Reduce Interest Rates. ..
- Spend on Public Works. ...
- Spend on Unemployment Benefits. ...
- Cut Business Payroll Taxes for New Hires. ...
- Defense Spending and Job Creation. ...
- When to Use Expansionary Fiscal Policy. ...
- Job Creation Statistics. ...
- Presidents Adding Jobs.
hope it helps
Answer:
The goal of all job creation strategies is to stimulate healthy economic growth. Economists agree that annual growth between 2%–3% is sustainable.1 This usually requires adding 150,000 new jobs per month to employ new workers entering the labor force. In a free market economy, the government doesn't need to do anything when growth is healthy; capitalism encourages small businesses to compete, thereby creating better ways to meet consumers' needs. Because of this, small businesses account for 65% of all new jobs created.2 The proper role of government is to provide a supportive environment for growth.
Even a healthy economy is subject to the bubbles and busts of the business cycle. When the economy contracts into a recession, the government must create solutions to unemployment. It may use expansive monetary policy, expansive fiscal policy, or both to stimulate job growth. Here are the eight job creation strategies that give the most bang for the buck.
Reduce Interest RatesExpansionary monetary policy is when a central bank, such as the Federal Reserve, uses its tools to stimulate the economy—often lowering the fed funds rate to increase the money supply, which increases liquidity and gives banks more money to lend.3 As a result, mortgage and other interest rates decline. With cheaper credit, consumers can borrow and spend more, allowing businesses to expand to meet the increased demand. This increased demand lets companies hire more workers and give them more purchasing power.
The Fed can also increase the money supply through quantitative easing, which is when it creates credit out of thin air to buy U.S. Treasurys, mortgage-backed securities, and any other kinds of debt.4 They can quickly put trillions of dollars into the economy by making credit available without increasing the U.S. debt. They also have many other tools, such as lowering the federal reserve requirement and lowering the rate on the discount window—which should be done first when a recession is looming because decisions can be made quickly through the regular Federal Open Market Committee meeting.5
The main disadvantage of this is that it relies on bank lending and doesn't directly put money into consumers' pockets. It can take six months or more to stimulate demand. It also doesn't work once a severe recession is underway because there won’t be much demand for loans. If people feel too poor to borrow, it doesn't matter how low interest rates are. If the recession continues, banks become unwilling to lend because borrowers' credit scores fall. Another downside is that expansive monetary policy can trigger inflation if overdone. To prevent that from happening, the central bank must begin raising rates as soon as the recession is over.A University of Massachusetts at Amherst study found that all government spending is not created equal. The most cost-effective ones are building roads, bridges, and other public works. $1 billion spent on public works created 19,795 jobs.6 Public works create jobs because it puts people right to work. The federal government can quickly fund construction projects already in the approval pipeline. It can hire contractors, send money to the states, or hire workers directly. That was one reason why the American Recovery and Reinvestment Act ended the Great Recession in 2009.7 It spent $85 billion in shovel-ready construction projects.8