World Economy Futures?

Question

Does the World Economy rest upon the success of the American Economy? In other words, at this point in time. If the U.S. Economy falters worse than 1929, would that mean the demise of the world economy as well?

Answer 1

Since US economy is the largest economy and many emerging economies depend on it. If US economy falls it will have large impact on world economy. This will be the case until us economy is the largest economy.

Since 1929 much has changed. growth in world in economy was led by western part of the world. Now it is the eastern part. I think US economy share has fallen since 1929.

So my take impact will not be as large as 1929. Again 1929 hurt Germany the most as Germans had invested a lot in US. I suspect this time it would again Japan, Korea and Taiwan along with China.

Answer 2

Immediate future after a great depression of American Economy is likely to be negative and slower growth in various other countries. But a great depression does not last very long; seeds of economic recovery and boom are laid down in the preceding depression.. So if US economy falters in a major way, it is likely to be followed by a recovery of US economy and also many other economies in Europe and Asia. We will be back to another cycle of most economies on growth path. But the world economic environment has changed over the last 6 - 8 decades in a fundamental way, A Great Depression of the 1929 relative magnitude and type is most unlikely in the foreseeable future unless the US continues to be complacent with its budget and fiscal deficits, growing govt. size and loss in technological leadership in various economic activities.

Answer 3

Housing subprime sewage will hurt the markets, but the effects on the economy will be limited, but expect slower growth rates of 2% a year with this housing problem in America. Great Depression occured because of counter intutituive fiscal policy, and trade barriers. The present problem is too many sub prime loans give out. Someone will profit off of New Century, and other players giving out John Gotti house loans that went bad. Except the goverment to bail out the people that got the loans, but the greed of the investors will reap them. Other sectors of the economy will pick up the slack from the housing problem, but no depression just slower growth rates for a while.

Answer 4

Meg, you're some distance too damaging. in case you dont like the way the international is, then concentration on it. Complaining doesnt help in any respect. this question is merely too obscure to respond to right. in terms of GDP, Asia will advance. merely like many countries until now them, they are going to study to greater effective use their components, and wages will point off. the hollow between the rich and the damaging merely seems undesirable to those who do no longer take possibilities. For marketers, it is carefully honest because of the fact they're those bearing each and every of the possibility. Too a lot of human beings blame their medocre life in this widening hollow, yet on no account on their own laziness. this is why Asia will prosper, because of the fact they only paintings and dont whinge approximately equality.