Boosting the Economy: 0% Financing on New Cars :: Market Economics 9/11 Essays

Boosting the Economy 0% financing on red-hot CarsThe economy had been moving in slow crusade for the last year and the dreaded R word, break, had been put into circulation by the media and consumer analysts. Then, of feast, the events of kinfolk 11th occurred and the economic slow down sounded average fine as opposed to the economic standstill that many feared. Staring into the organisation of recession and contemplating the national tragedy, corporate America was desperate to find a centering out. Not that they were alone, but Joe Schmoe, a blue-collar worker, couldnt do much to spay nations economic dilemma. And good old Uncle Sam hand his hands laced with the terrorist problems. Even so, saying that the government was going to take action is just to say that the government would help corporate America take action. Of course the answer was to get and forestall America sinking reenforcement property go around. But how was the question that loomed. As we know, many of t he major automobile companies unyielding that they would offer 0% financing on new cars in influence to lure Americans to spend money. At this point we dont know what the final make depart be, whether this action will actually stimulate the economy and keep America from a recession. However, there is much to speculate on concerning the manageable effects. And it is interesting to consider exactly who might be reaping the benefits from this action. In addition, this sign of economic action seems to have elements that fall into a category of akin capitalistic avenues that many authors read this semester have analyzed in the past. BenefitsNow, wherefore should we think that this action will benefit the economy? Again, in the face of recession the goal is always to get people spending and keep money flowing. New automobiles are a high dollar accompaniment that can get money circulating in a hurry. New automobiles are also an item that the majority of the population cannot affor d without financing. This makes the judgment of buying an automobile with no finance charges very appealing. From the big line drawing perspective, the idea is that enough automobiles would be sold to keep money circulating and to keep consumer confidence high so that we could talk ourselves out of a recession. Basically, the remedy for recession is keeping people believing that the economy will be okay, consumer confidence, and therefore they will not be reluctant to spend and money will circulate.