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How the U.S. Affects the Global Economy: Good or Bad?

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The US has been the main engine behind global economy, i.e. the world has gotten used to rely on this growth propelling mechanism.
1. Do you think it is too dangerous for the US, for the world? Why yes? Why not?
2. Do you envision any changes in this dependence?

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Solution Summary

A discussion on the impacts of the U.S. on the global economy is provided.

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The US has been the main engine behind global economy due to its free-market system which promotes economic growth through the ability for individuals and businesses to invest their money whichever way they please and wherever they see fit. Studies show that "In 2002, imports to the United States from developing nations totaled a whopping $317 billion. (The United States is the single largest market for developing nations' goods.) Exports from the U.S. to those nations totaled $130 billion. Both imports and exports are important, but look at the difference, that is, the trade deficit that resulted for the United States: $187 billion. That's 44 percent of the entire trade deficit that the United States ran last year with all nations. In other words, with developing countries, the United States buys a good deal more than it sells" (Hasset and Glassman, 2003). This is telling us that the U.S. is able to propel global economy by not only providing poorer nations with financial assistance when needed, but also by supporting their products, involving in a two-way trading interactions with them, and giving them the opportunity to develop their own improved economic principles while risking ...

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Carmel Philistin, MBA/HCM
Education
  • BA, Brooklyn College
  • MBA/HCM, Phoenix University
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