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The contribution of finance to human development


Without finance the world is afraid to degenerate to the medieval era of small farming economy, which is absolutely no less important than agriculture and industry. Even the development of the latter also depends on the financial market.

Finance is not just stocks, funds, wealth management. Banks, insurance are the products of finance. Imagine it, if there is no bank, you want to save money to buy a house will have to hide the money under the pillow, save until your hair is white and then trembling to run to the sales office to buy a house (if you are lucky enough that prices have not yet risen to the sky, you can still keep up with the speed of saving money), and do not expect any mortgage loans. Banks take deposits from depositors and then disburse them in the form of loans to businesses and individuals in need of funds, for economic development and livelihood, is an important blood transfusion line, how to describe its importance is not too much.
This is the case for individuals, as well as enterprises. Without finance, without the power of capital financing, there will be no Steve Jobs, Ma Yun, everyone can not use smart phones, there will be no WeChat, and there will not even be the Internet. The technological development of mankind would have been set back at least a few decades. Most people only see stocks as a speculative tool, but do not realize that financial markets actually exist so that more people can participate in investment and financing activities, so that companies can obtain financing for development. The same goes for the government, as the government bond market allows it to expand its access to financing without having to raise money through taxes alone, as was the case in ancient dynasties. The financial markets are also an important medium for the state to regulate the macroeconomy. The Federal Reserve, for example, regulates interest rates and liquidity through open market operations, thus further stabilizing inflation and unemployment rates.

There are two sides to everything. It is true that some people use the financial market to make waves and make huge profits, but the positive role of the financial market can not be dismissed. Whether you are aware of it or not, and regardless of your subjective desires, everyone in modern society is dealing with finance and cannot live without it.

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