The finance industry is one of the most important aspects in any country. Finance workers are responsible for managing businesses, organizations, and individuals’ money effectively. Loans granted by financial institutions play a major role when it comes to business investments. Without these loans, many businesses would not be able to succeed in growing their companies or expanding their operations.
Many individuals who are not part of the Finance Industry encounter difficulty in understanding its importance because they only see the negative side of this workforce (examples: bailout packages under TARP program during 2008 Financial Crisis). However, without loans given by financial institutions like banks and credit unions, there would be no way for people to buy new homes or cars; thus affecting the economy negatively due to loss of consumption spending resulting from individuals not being able to afford these items, in addition to companies having difficulty in paying interest on their debts.
Another area in which finance has a positive impact would be the investment of funds into businesses that are doing well financially in order for them to expand and grow even more. These investments help increase revenue for said business by allowing it to hire additional workers and purchase new equipment. Thus resulting in increased production output, thus making way for an expanding economy which is fueled by consumption spending from consumers who have been given loans.
In conclusion, without the Finance Industry, our economy would suffer tremendously due to lack of loans being issued from financial institutions along with lack of investments made into successful companies