Will negative interest rates help revitalize our economy?

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Interest Rates - Highway image
Some of you have never heard of negative interest rates, like me, while other have. These are some wild times in our economy so some people are suggesting that the Feds lower the interest rates in the negative to help our economy.

The first question you probably have is what do negative interest rates mean? Negative interests mean that you will have to pay a monthly fee to the bank to keep your money in which it will encourage you to spend your money, which is the goal, or just keep it in a safe at your house. On the bright side, the taking loans will be easier because you don't have to pay any interest rates so if you want to get a loan to buy a house, just do it.

In theory, negative interest rates should help our economy because increased consumer spending means higher sales for companies, and some examples of these implementations can be seen in Japan and Europe.

However, there is a discussion whether or not America should actually enact negative rates.

President Trump believes that the Feds should decrease the rates to negative because he believes it will help the economy.

Jerome Powell on the other hand doesn't believe that negative interest rates are needed so he states that negative rates are off the table and probably won't happen.

The problem, even though you have negative interest rates, is will the consumer feel safe to shop and spend their money because even if you try to encourage people to take out loans and not save their money in banks, its up to the consumer if they really want to actually spend money.

Also another problem is that with a lot of people losing their jobs, which is causing unemployment rate to skyrocket, because that means that they lost their source of income which will cause them to only buy items that are necessary and not buy any other things.

I believe that it is not necessary right now to implement negative rates because the negatives rates will negatively affect people saving their money in the bank, because of the fee, and will not encourage a majority people to spend their money as a lot of people lost their source of income.

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