> A professor explained it "lower rates make it easier for businesses to get loans, so they can create jobs!" [...] Where does the theory address whether those

> A professor explained it "lower rates make it easier for businesses to get loans, so they can create jobs!" [...] Where does the theory address whether those jobs create anything worthwhile? Economics 101 books assume every business is a medium-sized family-owned manufacturing company. If you're a medium-sized family-owned manufacturing company, your growth might be constrained by access to capital - there might be several different investments in machines you could make, any of which would pay for itself within ~5 years, but you've only got the cash to get one machine. With more access to capital you can get a second machine, and hire the people to operate it - meaning more jobs and more profit. And of course you'd steer clear of unproductive investments, short-term-ism and empire-building - you're planning to pass this business on to your children and grandchildren. You need a sustainable 10-to-20-year outlook, reliable, well-trained employees and an order book full of satisfied, profitable repeat customers. On the other hand, if your business model is 1. Use cheap loans to provide subsidised taxi journeys, 2. ???? 3. Profit - the economic theory books don't really explain that.