This article in the Wall Street Journal today shows the multiplying effect that a decline in US GDP may have around the world. What do you think is happening to the overall demand for products produced in Mexico, Japan and Germany? And how can these countries see economic growth again without a recovery in the US economy?
The overall demand for their products dropped. These countries could decrease their inventory and adjust the export production for the needs of others countries. They could also create their own products that needed to be imported(if possible).
Due to US GDP decline, the overall demand for products decreases. Japan is still in shock of the decline GDP that calls for more aggressive measures from both the government and the Bank of Japan.Central bank rate cuts and recent actions to purchase the shares and corporate debt from lenders seem to have little effect in face of a deficient demand for Japanese products from overseas. It should make a new plan like focusing on their strengths and weaknesses in the country. I am sure Japan will use its own human resources to help improve the GDP in the country. Other countries, they have their own strengths and weaknesses. They will find a way to make things work. The situation will teach each country to be independent.
I’m pretty sure our trading partners are worried right now. I mean a decline in United States GDP is not good for the world because the United States basically controls the world market (I learned that in class). Let’s say the US imports 100 pencil sharpeners from Mexico each year, now we might only be importing like 47. I agree with CTgirl that countries will have to find ways to be more independent. Either that or they could try improving the US economy somehow. Japan for example could offer to train American engineers how to make a car. That is a car that actually works (good).
OUR TRADING PARTNERS ARE WORRIED!!!! I think the influences that are not ever mentioned but play a major role are at the core. We may be a great country but the quality of our product is weak. However, the idea that SavyEconomist offers could never fly, because of the arrogance and ego of the American worker, to be trained in another country. It does not change the fact that we are not are own nations largest consumer of our own product, nor could we be. We have been the catalyst of a world economy and are paying the price. I believe the other world markets are obviously feeling the effects of our sliding GDP, yet because of their countries and peoples history of savings the lifestyles have not suffered the way they are here. I believe that our trading partners are already being pro active in response, and although still needing to respond are looking to do so in responsible ways. While here in America we are still trying to figure out how can our companies just make a profit….
Partners are definitely worries. As once a BOOMING economy, the US is now struggling to get products OFF the shelves! People are worried to lose money because they don’t have security in their jobs. This worry of lack of money makes people not want to buy things – hence less need for imports from other countries to come in. This creates a global problem because EVERYONE is producing less which means EVERYONE has a smaller income. I agree with NDN1 – we need to figure out how our own companies can make a profit – can we do that though without improving the profit on a global scale?
I think it is always a good idea to have an economy that supports itself. Americans are feeling a little crunch right now and the world economy if suffering… there should have been a plan for this. You can not honestly say that these trading partners did not know we are a nation of credit that we are unable to support. This has all been forseen, along with the US crash. It was greed all around. Greed of the American people buying things on credit they were unable to afford. Greed of nations supporting an economy that had to crash so they could have more money at the time. Now we’re all going to suffer, and its really all our own fault.
Most people do not understand how the United States current economic situation is affecting other countries. This article demonstrates what a large impact our markets have on other countires. Trading countries, such as Mexico and Japan, rely heavily on the United States to keep their economy stable Becuase many citizens of the United States are focused on how to conserve their money, there is no longer a large demand for the products (such as automobiles and other mass produced products) that our trading countires are producing. The economic recession is in turn creating a low demand for imports which as a result have hurt the economic stautus of those countries linked directly to our production and consumption.
The US right now is in a major downhill. Other countries keep depending on our demand of products, but we do not have enough money or people willing to buy the products. I think this article really opens up peoples eyes to see that not only is the US suffering from this bad economy but other countries are as well!
Well, clearly, the whole world is suffering; other countries are sweating over this. There is a saying that says, “When the United States has a cold, the whole world sneezes”. My personal opinion would be this: I really think it’s rediculous for other countries to depend on us so much. I realize that they depend on us for their own being, but they should be wayyy more independent. I agree with “adri143″ … this is a good article because U.S. citizens should also realize that it’s not just our country, or our “people” that are hurting during this economic emergency.