Unformatted text preview: very beginning of creating new jobs. The federal stimulus money helps to reduce the debt of both households and companies even if it did not reduce all debts. The increase of households’ saving helps them to consume in the future. This would help U.S. banks and companies eventually. Many companies, therefore, can afford to increase their investments which lead to generate new jobs. This package cannot be helpful for the short-run, but the long-run. The increase of individuals’ consumption and investments by companies helps fundamentally not just to create new jobs, but also to improve the efficiency of labor which is really important factor for the economy growth....
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This note was uploaded on 02/10/2011 for the course ECON 100B taught by Professor Wood during the Spring '08 term at Berkeley.
- Spring '08