Bank lending is said by many to be the key to a full economic recovery, but others tout jobs are where the true need lies. There are arguments for both sides but which really is the lifeblood of the economy: lending or jobs?
There are those who say banks have to start lending more so people and companies can get back on their feet and if banks restrict lending then it will only slow economic growth. If someone is struggling in their finances there are ways they can get a loan in which to get them back on their feet and new businesses need capital to start and run.
Banks can help the economic situation greatly and many want to see more movement on their part since so many were given taxpayer bailouts and now seem to be holding on to the money that many citizens see as rightfully theirs to borrow.
However, is the restricted lending by banks a bad practice? If someone is in financial trouble or would be a high-risk loan, which seems to be more and more the case for so many, then why would banks lend freely and loosely? Aren’t those practices what started the whole recession mess anyway?
Again, bank lending is a huge asset to the economy but at the core of any economy are the citizens and what the citizens of our nation need desperately and immediately are jobs. Unemployment is reaching a ridiculous level, people are meeting one financial hardship after another and it’s all stemming from the lack of income from employment.
A stable income for Americans will truly further the economy’s recovery because when citizens have money they can afford necessities more easily and in turn they will spend more freely, which means all areas of the economy benefit. Many have avoided banks over the last few years as they have taken advantage of online classified listings. Some have sought out Craigslist Cars by owner as there are many offers well under $1500. Taking advantage of these options might be a good idea.