In the early years of the United State’s existence trade was limited.
We exchanged the few goods we had to export with England and France. This relationship was dramatically changed by the Second World War. Coming out of the war the U.S. economy experienced a period of tremendous growth, and claimed the position of the world’s richest country. According to the University of Groningen, “GNP.
..jumped from $200 thousand-million in 1940 to $500 thousand-million in 1960.” Despite all this, America has experienced multiple recessions since World War 2 and has only recently recovered some of its economic renown. According to the social progress index, a tool created to more accurately measure a country’s society, compared to its peers of similar GDP, America is more corrupt and discriminates more often than similar countries. This indicates to me that we need to do more to create economic opportunities for our country to grow. In the TED talk given by Dambisa Moyo, she states that capitalism is, “failing to cure social ills, fostering corruption, and creating income inequality.
” The social progress index confirms Moyo’s claims, and suggests that we may need to make large economic changes to achieve the goals we have set for ourselves and our country. The global economy has become drastically more interconnected as technology has developed over the years. As technology has developed, the number of imports and exports around the globe has increased. South Korea is one of the frontrunners in this new globally connected economy.
Busan, South Korea is home to the fifth largest shipping port in the world, and South Korea is the fifth largest exporter worldwide. On the Economics Complexity Index (ECI), South Korea is ranked third, mostly due to their wide range of electronic components that they ship out (Roethler). All this combines to make South Korea a shining example of the new world economy. With the benefits of the global economy comes a slew of risks. Imagine of South Korea, who provided China with 10% of its imports and the U.S. with 3%, suddenly decided to stop allowing iPhones through its ports (Roethler)? With the high demand for products that are often shipped around the globe before they end up in a consumers hand, large trade hubs can play havoc with the prices for common items.
To combat this, organizations like the World Trace Council have been formed to regulate prices, but how effective are these organizations? These are the problems I predict we will face in the future of the global economy. In the future it is easy to see the world becoming more and more connected with technological advances. In the next 25 years, it is easy to see the world coming together to form laws and agreements to protect consumers buying products that originated from across the globe.
Over the course of the coming decades steps will be taken to begin the formation of a global nation. As countries in Africa and South America develop into the first world, even more trade deals will be struck between developed countries and countries hungry for the tools to develop further. The need for international laws and protections will only increase, until countries start to band together for the common good.