The natural effect of low interest is to increase trade and industry; because undertakings of every kind can be prosecuted with greater advantage.
Interpretation
Low interest rates stimulate economic activity by making investments more attractive.
This quote by Alexander Hamilton emphasizes the positive impact of low interest rates on trade and industry. When interest rates are low, businesses can borrow money more easily, leading to increased investments and economic growth. It suggests that favorable borrowing conditions encourage entrepreneurs to pursue various ventures, thereby boosting overall economic activity and benefiting society as a whole.
In practice
In a speech about economic recovery, a speaker might reference this quote to underline the importance of low interest rates.
When men, engaged in unjustifiable pursuits, are aware that obstructions may come from a quarter which bare apprehension of opposition from doing what they would with eagerness rush into if no such external impediments were to be feared.
The tendency of a national bank is to increase public and private credit. The former gives power to the state, for the protection of its rights and interests: and the latter facilitates and extends the operations of commerce among individuals. Industry is increased, commodities are multiplied, agriculture and manufacturers flourish: and herein consists the true wealth and prosperity of a state.
It's not tyranny we desire; it's a just, limited, federal government.
The Achaeans soon experienced, as often happens, that a victorious and powerful ally is but another name for a master.
The people are turbulent and changing; they seldom judge right or make good decision.
The true principle of a republic is that the people should choose whom they please to govern them. Representation is imperfect, in proportion as the current of popular favor is checked. The great source of free government, popular election, should be perfectly pure, and the most unbounded liberty allowed.
I get heartfelt thanks from all kinds of people. Today I heard from a waitress in Georgia who has lost her job and is trying to figure out how her local bank can change the terms on her credit card, and I heard from a physicist at a major research university who wants to explain a better theory of financial stress tests.
Obama had to save the banks, sure, but he didn't have to save the bankers and the shareholders and the bondholders. We broke the rules of capitalism in order to save those at the top - as we always do.
During the two centuries since the publication of 'The Wealth of Nations,' the main activity of economists, it seems to me, has been to fill the gaps in Adam Smith's system, to correct his errors and to make his analysis vastly more exact.
Constructive trade, the two-way exchange of goods and services, is the most efficient and logical way for each nation . . . to build a stable prosperity, a prosperity based not on aid, but on mutually beneficial economic contacts.
The need of a constantly expanding market for its products chases the bourgeoisie over the entire surface of the globe.
The poor don't live in functional market economies as the rest of us do, but in political economies where corruption and broken systems extend from local government to moneylenders.
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