The 21st century has been a tough time for the global economy. Many wonder if the world is too far gone, or if there is something that can be done to fix it. It is important to understand the major players involved, and whether or not the global economy is truly beyond repair. As of 2019 the world economic leaders are the United States, China, Japan, Germany, The United Kingdom, France, and India. So why is the global economy at a tipping point? The simple answer equates to the leaders of several key nations.
The reason the world is where it is today is essentially due to poor leadership. Take the the trade war between the United States and China as one example. Over the past year Donald Trump declared a trade war with China, and imposed strict tariffs on imported goods from the region.
This was a horrible move, because Chinese manufacturers make tons of goods for the United States. Just take a look at the bottom of any plastic item, and you’ll see in tiny lettering “Made in China.” The second Donald Trump declared this policy, the stock market in the United States took one of the largest dives it had taken during his presidency.
The bond market is also in big trouble, and is giving off warning signs of a recession the same caliber as seen in 2007. The United States is the number one economy in the world, so if it enters a recession it is bad news for every nation financially tied to the United States. A literal recipe for disaster.
While Donald Trump may make one hefty contribution, he is not solely responsible. Ever hear about Brexit? Prime Minister Boris Johnson’s version of Brexit has tipped The United Kingdom into economic contraction. The United Kingdom is attempting to cut all ties with Europe, and the rest of the European Union is not faring much better in terms of growth. Add this in with China’s stubborn leader, President Xi, and most stable trade deals have come to a halt. It is safe to say that the leaders of the top economies are doing a poor job keeping the global economy steady, and tough times are surely ahead.
Is This It? Or Can It Be Fixed?
The global economy is heading for disaster. This is fact not fiction, but is there a way to prevent it? While the world leaders may be the ones responsible for this decline, they’re also one of the best hopes in restoring it. The main issue here is protectionism and nationalism.
The World Trade Organization used to be profitable for all the nations involved, and promoted unison in economic endeavors. The protectionist views that the world leaders have taken on need to come to an end. If the global economy is going to be restored to it’s better days, the world leaders are going to have to get along once again.
The trade war between the United States and China needs to be negotiated better, and leading economies need to begin investing in their infrastructure once again. Sadly a lot of this burden falls on the people who made the economy this way, do you trust them to fix it?
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