Government Spending Can Create More Jobs but Salary is Still Not Enough

President Obama is pulling the economy out by encouraging the entire country to work together. Apart from this, the government gives more importance on the right allocation of funds to open up more jobs. Fiscal expansions during recessions as well as the usage of economic multipliers are highly beneficial to the nation of able job hunters.

Fiscal expansions do not have to be long term because their only goal is to provide a means of livelihood while the labor market is still weak. Millions of people work for the government and millions more work for organizations that have been funded by the government. All the money generated from taxes, alone, could create more jobs too.

Other than that, firms working on government projects hire people and thus, generate employment. So the problem really is not on the creation of jobs, rather, the issue is on making sure that the pay is enough to cover all daily living expenses and still have enough for emergencies.

Even if plenty of jobs are generated but the pay remains really low, people will still be forced to borrow. A reliable proof of this fact would be the increase in firms offering immediate financial solutions to a hungry market. The money loaned can be used for several reasons including bills payments like mortgages, loan consolidation, and emergency expenses and even to put enough money in debit accounts in time for an unstopped automatic withdrawal.

Under ordinary circumstances, job creation and payroll considerations could be taken together. But with the consequences of the recession, this task is made more difficult. The government will not only have to think about job creation, they would also have to ponder on resolving the housing crisis and at the same time, encouraging businesses to invest. Hence, the economy seems to be suffering from a lack of demand for jobs; and even the fiscal expansions cannot fill that void.

It is urgent that the Congress act on creating more demand in order to hit all issues at once. Consumers have less money to spend and businesses have little incentive to encourage them to hire and invest. The government can only take measures to create private-sector jobs but they will still need the help of investors. Borrowing from bad credit loan companies is expected to continue until the number of jobs created and the pay increase complement one another.