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Today many different economic problems affect various groups within our nation, and around the world. Some of these problems affect small groups while others have a larger, global impact. It is not easy to place a higher importance to any single problem over another, mainly because all the problems are all indeed very important to those who they involve, regardless of how large or small that number is. Today we see one trend that is affecting companies on a global base, involving many people. When you consider the number of people who support their lives via the income derived from larger scale companies, you start to understand the wide spread cost of decisions made by these companies. Companies today are not borrowing money today because of a lack of credit, but instead because of a lack of foreseen future sales revenue.
With current interest rates at a low level for a "comfortable" period of time, it is very inviting for both the business, and the private sector to borrow money. Credit lines are given out like fists full of dirt. Never before has it been so easy to borrow money. People are refinancing there mortgages, witch is unfortunately what the majority of the consumer today it doing to take advantage of the lower interest rates. Normally this would also encourage large ticket purchases, such as homes and vehicles. For large companies it encourages expansion, and hiring of employees. In any case, low interest rates can expand the working assets of an organization.
Companies today however are apparently not looking to expand there working assets. Indications are stating clearly that the fear of a lacking in future revenue is keeping them from taking on the added risk of more debt. Clearly organizations are not confident in their own ability to repay these loans in the future, and than would be facing bankruptcy. This is a scary situation. Little can be done in the economic business world today without having at least some debt. The necessary evil, as some would put it, allows for the financially incapable, to become capable of industry investment, and/or carrying out of personal business dreams.
This issue is not limited to only public and private sectors. America as a Governmental force is faced with increasing debt problems. According to the International Monetary Fund, so-called "emerging economies" in Asia held about half of the official foreign exchange reserves in the entire world, with Japan being the leading player.
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"Why Aren't Companies Today Borrowing Money?." 123HelpMe.com. 22 Nov 2019
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1. The Study of Economics principles, concepts and Applications Sixth edition, Mings, Turley and Marlin, Matthew Pages: 269-271