What would happen to the world if the economy of the US suddenly fell to 0

I’m presuming that your question is about “What would happen to the world if American economy declines drastically?”

To measure the Economic performance of country the best measure is by calculating it’s GDP.

Equation for

GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports)

So, In order to possess a stable economy country should perform well in all the above.

Any country in the world is not self-sufficient for its consumption, hence they rely on import or if it has surplus of produced goods or resources they export.

The policies adapted by the government plays a crucial role on performance of countries economy.

America being the largest economy with the contribution of 24.32% to the World’s GDP, crisis in USA will effect the global economy.

This had happened earlier once in 1929, “The great Depression”. This is worst global economic crisis ever faced by world after Industrialization. The depression started in America, then it was spread to the western countries and acutely affected the Asian countries.

During 1930 , ‘The great depression’ had hit the European countries. All the economies plummeted across Europe which led to the rise of Adolf Hitler. He wanted to make Germany as an Economic super power .

Rest is known to everyone. The implications of crisis in the US economy causes global melt down.

Comments

Can the Philippines become a developed country

keep growing its economy. get the Islamist insurgency under control and defeated. solve its traffic problem. The last is the hardest. I’ve the long term solution. First, why doesn’t Grab work everywhere? Remove the regulatory barriers. Second, while ride sharing helps, for a country of the density of the Philippines, mass transit rail is the only solution. However bringing mass transit rail directly to the cores of the cities like Manila is not practical. Instead, for now, take advantage of the growing population, and introduce mass transit rail with every development in the suburbs. Eventually there will be concentric rings of rail around each city, which will reduce the surface traffic in the cores because if it takes 50 times longer to move along the radius as as circumference, people will choose the circumference even if the distance is 6.28 times longer (circumference = 2 * radius * pi). Eventually people will abandon the cores, and this will be an opportunity for ...

What does spending $20bn on the world's longest bridge say about the strength of China's economy

Some people ask questions about China and the Chinese, which shows a complete ignorance of the Questioner. The best question/s come from people who understand China/the Chinese length and breadth of the culture. For example, this man at the best could be 140 lbs and carrying this load to deliver to a restaurant in the Yellow Mountains. The Chinese Government easily could deliver it through Helicopters, but they do not want to kill the livelihood of hundreds of such porter. To the Western World, it may not make sense, but the Eastern Culture makes sense. On the other hand, this mountain man who is fit as the fiddle, loves his livelihood, his mountainous surrounding. He does not give two hoots to bright lights of Shanghai, he does not want to move(I am guessing), and the Government of China recognizes it, and that is why most to the Chinese do not give two hoots for useless democracy and fake freedom. And President Xi and his wife the first lady are the darlings of the masses. Th...

What are the technologies from China that lead the world

When the Chinese learn to innovate, what will happen to the world China is in an unprecedented era of technological outbreaks, and in the next three decades we will witness a great time together. For all the young generation of the world, the future is full of the opportunities and the challenge. It will appear like Henry Ford, Akio Morita,Kiichiro Toyoda, Bill Gates, Steve Jobs, Zuckerberg those who are great entrepreneur. Let us make the world great again ! 1. Supercomputers： The world's first-ranked supercomputer is the Sunway TaihuLight. It’s computing power is 5 times that of the United States’ Titan. The world's second-largest supercomputer is also China's. June 2017 | TOP500 Supercomputer Sites [1] 2.Who made the super computer's CPU ? Not Intel The SW26010 [2] is a 260-core manycore processor designed by the National High Performance Integrated Circuit Design Center in Shanghai. The U.S. banned the export of some Intel Xeon chips to China...

Economics

Search This Blog