Although China may now be the 2nd largest economy in the world, I think its good to take note that in terms of percentage of world GDP, China's GDP is no where even near the US. The US is still firmly the largest and most powerful economy in the world. Furthermore, China's growth in not guaranteed- it faces huge problems domestically. We also saw how Japan's growth miracle faded into a long period of depression.
Nonetheless, the trajectory of growth for China does indicate that the US needs to start making good and wise investments and cuts in order to compete with China in the years to come.
Melissa makes a good point in that the US does need to keep it's eyes on some of the other largest economies in the world...especially China. Though China's growth is not guaranteed, perhaps in analyzing some aspects of China's economy the US could learn how to continue to grow and maintain it's economic prowess.
This may have an affect on Germany. The article that we had to read for class stated that Germany was one of the leading exporters until China took over. This may be a disadvantage to Germany because it will lower the revenue generated from exports.
3 comments:
Although China may now be the 2nd largest economy in the world, I think its good to take note that in terms of percentage of world GDP, China's GDP is no where even near the US. The US is still firmly the largest and most powerful economy in the world. Furthermore, China's growth in not guaranteed- it faces huge problems domestically. We also saw how Japan's growth miracle faded into a long period of depression.
Nonetheless, the trajectory of growth for China does indicate that the US needs to start making good and wise investments and cuts in order to compete with China in the years to come.
Melissa makes a good point in that the US does need to keep it's eyes on some of the other largest economies in the world...especially China. Though China's growth is not guaranteed, perhaps in analyzing some aspects of China's economy the US could learn how to continue to grow and maintain it's economic prowess.
This may have an affect on Germany. The article that we had to read for class stated that Germany was one of the leading exporters until China took over. This may be a disadvantage to Germany because it will lower the revenue generated from exports.
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