Economics ArticleEssay title: Economics ArticleAccording to most economists, the world economy is very dependent on American demand. Recently, it has been discovered that the world economy can sustain itself in the event of a recession in the United States economy. The major reason for this new found stability is the emerging markets in Asia, particularly China. Fear that the American economy will fall into recession is driven by two major factors: a slumping housing market and a declining dollar. Over the past several years, emerging economies in Asia have been responsible for a greater share of the global gross domestic product growth than the United States. This year, China alone will be responsible for more GDP growth than the United States. Although this great news for the global economy, a sharp slowdown in the Chinese economy will have a more devastating effect than in the past because more of the world is dependent upon Chinese exports.
Economics ArticleEssay title: Economic ArticleIn the near term, the world economy must be saved from future deflation. For example, recent data indicates that, over the past two centuries, the global economy has suffered deflation in its growth of almost 3% . This is in contrast to a decade ago when over the past two decades, this figure has decreased by about 50%. Furthermore, deflationary effects of global financial crises have not been present in the past. In addition, the U.S. has suffered a sharp fall in its dollar value since 2007. The situation appears to be different with a reduction in the growth of the US economy. If the US economy are to remain stable in a slump, it will have to adjust for the deflationary effects of the global financial crisis and be more competitive with other countries that may be unable to borrow from the United States.
Economics ArticleEssay title: Future Government ArticleIn the near future, financial crises will have a severe effect on the U.S. economy. For example, recent information indicated that last 12 months the value of US investments in the international financial system declined by $5.1 trillion and the share of foreign-owned foreign assets dropped sharply, an effect that may contribute toward the rapid weakening of the United States domestic financial system. In general, the U.S. government needs a financial strategy for the future that avoids a massive contraction in global trade and investment and, consequently, can rely on an array of international institutions including the IMF, World Bank, International Monetary Fund and WTO to keep up international growth during a time when there is severe austerity and the United States is in a severe recession. The best way to achieve these goals is to maintain a robust and balanced federal tax system and to preserve the nation’s role as the largest tax haven. For this reason, the United States has a strong incentive to pursue a variety of tax reform options to achieve their goals without the risks and costs of overstating an important economic issue.
Economic ArticleEssay title: Economic ArticleIn the near future, the United States will need to be able to borrow more of its own money, because inflation has been increasing steadily. A major reason was that it was necessary not to increase the size or volume of the federal budget. If inflation continued to grow, the potential impact on the national debt could even be greater than had been expected. In addition, the large fraction of the international debt is owed domestically. In fact, the proportion of the debt held on the United States equates to about 25% of the world’s total. This translates into $1 trillion a year with a potential positive $1.2 trillion a year income from exports by the time the global economy turns to “negative growth” – growth that is only partially offset by losses of capital. If the budget had been expanded into a new level of fiscal responsibility, the global financial system would have been able to continue operating well past the projected value of its annual surplus. A large portion of the money that China has borrowed to finance its debt could be used to repay American and International debt obligations. This may reduce overspending, but it could bring costs of US deficits into balance.
If America is to continue its global economic growth, it might also need to invest in new investments and exports, which would allow it to lower its net interest-rate.
Economic ArticleEssay title: Future Government ArticleIn the near future, the United States will need to be able to borrow more of its own money, because inflation has been increasing steadily.
In addition, the United States will need to be able to borrow more of its own money, because inflation has been increasing steadily. <