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Goldilocks and Small Business Credit - Admission/Application Essay Example

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Summary

This admission/application essay "Goldilocks and Small Business Credit" sheds some light on the important issue of providing credit to small businesses and the failure of the Federal Reserve to ensure that adequate credit is given to small businesses…

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Subject: Business
Type: Admission/Application Essay
Level: Undergraduate
Pages: 1 (250 words)
Downloads: 2
Author: tyrellbernhard

Extract of sample "Goldilocks and Small Business Credit"

Though the author cites that banks claim that adequate credit has been supplied to good businesses but the overall figures presented by the author provide a different outlook regarding lending to small businesses. The author argues that in order to ensure enough credit to small businesses so that they can grow, Fed has to relax some of its rules to allow banks to focus more on small businesses to help them grow. An inadequate level of bank debt may force many smaller businesses to go out of business. (Shane)

The overall stakeholders involved in this include small businesses, banks, and Federal Reserve System. All the stakeholders are jointly responsible for low credit extension to small banks due to factors that are particular to each stakeholder.

The moral issue involved here is based upon the argument that having a discretionary and biased approach towards small businesses may result in their decline.

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