How the American Economy Affects Us All

Historically, America has produced some of the strongest buying power worldwide. Sucking up many of the worlds commodities for a long period of time, the American dollar became a standard for financial transactions worldwide. As the Federal Reserve raises the interest rates in America, the exchange of the American dollar goes up as well, and since many of the worldwide funds are directly converted to American funds during business transactions, many have benefitted from this aspect of the American economy.

One of the strongest powers that America possesses over other Countries is their history of buying significant amounts of commodities worldwide. The modern economy has Americans buying less, which directly impacts the countries which used to export goods to America. Those countries lose funds from the American economy which lowers the buying power of that country and affects the financial economy worldwide.

Some of the reasons that Americans buy so much stuff and are in so much debt, is because the American government has made efforts to supplement the drop in American spending by setting up free trade with foreign countries as well as stimulus packages which offer easy cash to Americans to buy more things. This supplementation is one of the reasons that Americans are in so much debt with so few assets. It is easy to find funding or loans for more frivolous spending.

Every country has some involvement with the American export and import industry, whether it be large businesses like oil, or smaller businesses like food and spices. When the American economy takes a hit like it did in the recession, the rest of the world feels the consequences of their financial irresponsibility. The American businessmen and politicians have failed to create a stable economy regardless of the illusion of a favourable place where dreams are made. Learn more here.

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