The United States plays a significant role in the global economy. That role changes from time to time. As the global economy grows, there are other countries that are looking to get more involved or to make changes within their country to help their own economy and people while impacting other nations and economies in a positive way.
Rarely in history has one nation been as dominant in the world economy as the United States is today. The US dollar is the most widely used currency in global trade and financial transactions, and changes in US monetary policy and investor sentiment play a major role in driving global financing conditions (World Bank 2016). The U.S.
output of goods and services–that is, Gross Domestic Product (GDP)–exceeded $10 trillion in 2002. The United States, with 1/20th of the world’s population, accounts for one-third of the world’s output and, last year, more than three-fifths of its growth. The U.S. economy is so large that its metropolitan areas produce more than entire countries. For example, 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 (Kevin A. Hassett, James K.
Glassman). Not only does the United States buy hundreds of billions of dollars worth of goods produced by developing nations, it also invests heavily in those countries.The success of the United States has come not from its natural resources or its large population but from its free-market system, which allows people, either alone or in groups, to make their own choices (where they work, what they buy, what they pay), with little government interference. The global economy is important for the US as well.
Affiliates of US multinationals operating abroad, and affiliates of foreign companies located in the US account for a large share of US output, employment, cross-border trade and financial flows, and stock market capitalisation.Recent studies have examined the importance of global growth for the US economy (Shambaugh 2016), the global impact of changes in US monetary policy (Rey 2013), or the global effect of changing US trade policies (Furman et al. 2017, Crowley et al. 2017). Important as the US is to the global economy, the US economy is also affected by its trade and financial linkages with the rest of the world. Other countries are contributing in their own ways-they trade their goods since other countries lack of different resources and products.
Various countries try to convert to capitalism, however it’s not always “easy” to do. They must consider the possible successes and outcomes, reduction in the power of their government, and trade and production within businesses. Many countries try their best to succeed in the future of their involvement in the global economy but must make many large, strategic changes. I think the U.S.
global economy will continue to grow and succeed, and therefore, I have high standards for what the economy will look like in 25 years.