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

Boosting the Economy 0% Financing on New CarsThe economy had been go in slow motion for the last year and the dreaded R word, recession, had been put into circulation by the media and consumer analysts. Then, of course, the events of September 11th occurred and the economic slow imbibe sounded just fine as opposed to the economic standstill that legion(predicate) another(prenominal) feared. Staring into the face of recession and contemplating the national tragedy, corporate the States was heroical to find a way out. Not that they were alone, but Joe Schmoe, a working-class worker, couldnt do some(prenominal) to change nations economic dilemma. And good old Uncle surface-to-air missile hand his hands tied with the terrorist problems. Even so, saying that the government was deviation to take action is just to say that the government would help corporate America take action. Of course the answer was to gear up and keep America spending keep money travel. But how was the quest ion that loomed. As we know, many of the major automobile companies decided that they would offer 0% financing on new cars in order to lure Americans to spend money. At this presage we dont know what the final effects will be, whether this action will in reality stimulate the economy and keep America from a recession. However, there is much to speculate on concerning the possible effects. And it is interesting to consider exactly who major power be reaping the acquires from this action. In addition, this type of economic action seems to begin elements that lineage into a category of similar capitalistic avenues that many authors read this semester have analyzed in the past. BenefitsNow, why should we think that this action will benefit the economy? Again, in the face of recession the goal is always to get raft spending and keep money flowing. New automobiles are a high dollar item that can get money circulating in a hurry. New automobiles are also an item that the legal age of the population cannot afford without financing. This makes the idea of buying an automobile with no finance charges very appealing. From the big picture perspective, the idea is that enough automobiles would be exchange 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.