The world economy is made up of many individual economies. US and China are 2 of the largest economies in the world. Economic changes from either country (especially the US) will no doubt affect the world economy to a certain extent.
The US subprime mortgage crisis is a good example. The US economy's troubles has led to worldwide recession in 2009. Small and open economies like Singapore have taken an especially bad hit.
However, this does not mean that we should blame all the troubles in the world economy on US and China alone. The very recent debt crisis in the Euro-zone for example, is neither related to the US nor to China.
All troubles in the world economy are caused by imbalance. It is works like a wave. A disturbance in one area will cause those around it to be affected as well. Being major economies, US and China are often the source. However, the disturbance might have other roots as well.
If we wish to have a sustainable and healthy global economy, we should all play a part and work together to minimize the disturbances in each of our own areas. A problem that affects us all should only be solved when we work together as one.
2 comments:
You have some points. However, if you can list out some evidence to support your points, that will be great.
The US subprime mortgage crisis ans Euro zone debt crisis are supposed to tlbe evidence.
Post a Comment