The United States plays a significant role in the global economy, this is obvious. As the economy changes, so do many things, including the global economy and the role that every country plays towards it. Some countries want to be more involved as other wish to be less involved, it has all to do with how their involvement will affect their own economy. It is important that we understand our country’s role in the global economy, as well as others.
Rarely in history has one nation been as dominant in the world economy as the United States is today. The U.S. output of goods and services has been tremendous, and the gross domestic product had exceeded $10 trillion in 2002. With that being said, in 2002, Chicago had about the same GDP as Australia. Boston had the same as Taiwan; Dallas, the same as Saudi Arabia; San Francisco, Hong Kong; and Milwaukee, Pakistan. These are large countries that we are meeting the same GDP as with cities! I just compared Milwaukee, a city with the population of 595,047 to Pakistan, with a population of 193.
2 million, having the same gross domestic product as each other. Although our gross domestic product is the strongest in the world, our economy is very questionable. Trade plays a huge role in the global economy. With trade, there is a great benefit for both the givers and receivers.
With trade playing a great role in global economy, the strength of our economy is affected. See, we as a country heavily trade with China. We receive a great amount of product from China, but the United States does not give much product back to China in return. Which brings me to my next point, our debt. To this day, the United States debt is sitting at $18.96 trillion. This number is clearly extremely high. The problem is that our country keeps borrowing money, over and over again, without making much payment on our debt that we already have.
Another aspect that affects the global economy is the involvement of developing countries. A poor agricultural country that is seeking to become more advanced economically and socially is what we consider a developing country. Developing countries usually have relatively low average incomes and less developed infrastructures, education, and health care. With that being said, many people live in developing countries, so that does affect the amount of countries and people that are involved in the global economy, being that developing countries are generally more poor than the countries that have been formed for much longer.
With the developing countries not having as much money, they are less likely to be able to produce many goods, which would affect the amount of trade that those countries and other countries trade. What does the future global economy look like for the United States? Being that the United States has almost always been the most dominant country in the global economy, it is likely correct to assume that the United States will continue to be one of the strongest and most dominant countries of them all involved in the global economy.