A Country on Crutches

In this article from the LA times, economists explain how much of a reliance every country has on one another. As we all know when the U.S. fell into recession, it did not only effect us, but many other countries around the world. As a global power, the United States controlled and was involved in a great majority of the worlds trade. Without the finances to buy as much from other countries, their economies fell too. However, in turn, other countries can help us with their successes due to the close ties we all have.

China has been seeing some of its most successful years recently, and in fact have even begun trying to slow down the surplus they have found themselves in, in order to preserve it. China has begun to tell its banks to stop giving out so much money, and stop spending so much on imports. The United States was upset to hear this news because they have been fundamental in helping us slip out of our recession. They have been importing machinery and other forms of technology in from the U.S., and because of this our economy has slowly been on the road to recovery. 

China trying to take itself out of the economic fast lane they have been in could possibly be dangerous for us. Our country has been relying a lot on government support, but our job market is still not doing well, and same with our home buying market. We need to stabilize those before we can be sure that China's slow down will not hurt us. Economists say that as long as China's slow down is done in pieces we should be fine as a country, but we must stop relying on money from the government. Our government can not keep giving out money that the country doesn't have, that only makes things worse. However, they don't predict any disastrous financial falls in our country any time soon.

I thought they did a good job in this articled of discussing how the world is all very connected with each other, even if we don't see it every day. Although this was not about a specific business, this article discusses the future of all businesses around the world. Everyone needs to flourish in order for any country to be financially stable, and any business to have success. The United States is hoping to become stable enough thanks to the help of China, that our stock market, and all our businesses can once again stand on their own.