how will you create more jobs
pls tell me
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The goal of all job creation strategies is to stimulate healthy economic growth. Economists agree that annual growth between 2 and 3 percent is sustainable. It will create the 150,000 jobs per month needed to employ new workers entering the labor force.
In a free market economy, the government need not 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 percent of all new jobs created. 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 four job creation strategies that give the most bang for the buck.
01
Reduce Interest Rates

Photo by Alex Wong/Getty Images
Expansionary monetary policy is when a central bank, such as the Federal Reserve, uses its tools to stimulate the economy. This often means lowering the fed funds rate in order to increase the money supply. The action increases liquidity, thereby giving banks more money to lend. 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. Companies hire more workers, whose incomes rise, allowing them to shop even more.
The Fed can also increase the money supply through quantitative easing. It creates credit out of thin air to buy U.S. Treasurys, mortgage-backed securities, and any other kinds of debt. The Fed has many other tools, such as lowering the federal reserve requirement and lowering the rate on the discount window.
This should be done first when a recession is looming. It’s because decisions can be made quickly through the regular Federal Open Market Committee meeting. The Fed can quickly put trillions of dollars into the economy by making credit available without increasing the U.S. debt.
The main disadvantage of this is that it relies on bank lending. It doesn't directly put money into consumers' pockets. It can take six months or more to stimulate demand.
It doesn't work once a severe recession is underway. That's 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. Banks won’t be willing to risk taking on bad loans.
Another con is that, if overdone, expansive monetary policy can trigger inflation. To prevent that from happening, the central bank must begin raising rates as soon as the recession is over.
In a free market economy, the government need not 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 percent of all new jobs created. 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 four job creation strategies that give the most bang for the buck.
01
Reduce Interest Rates

Photo by Alex Wong/Getty Images
Expansionary monetary policy is when a central bank, such as the Federal Reserve, uses its tools to stimulate the economy. This often means lowering the fed funds rate in order to increase the money supply. The action increases liquidity, thereby giving banks more money to lend. 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. Companies hire more workers, whose incomes rise, allowing them to shop even more.
The Fed can also increase the money supply through quantitative easing. It creates credit out of thin air to buy U.S. Treasurys, mortgage-backed securities, and any other kinds of debt. The Fed has many other tools, such as lowering the federal reserve requirement and lowering the rate on the discount window.
This should be done first when a recession is looming. It’s because decisions can be made quickly through the regular Federal Open Market Committee meeting. The Fed can quickly put trillions of dollars into the economy by making credit available without increasing the U.S. debt.
The main disadvantage of this is that it relies on bank lending. It doesn't directly put money into consumers' pockets. It can take six months or more to stimulate demand.
It doesn't work once a severe recession is underway. That's 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. Banks won’t be willing to risk taking on bad loans.
Another con is that, if overdone, expansive monetary policy can trigger inflation. To prevent that from happening, the central bank must begin raising rates as soon as the recession is over.
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