Being one of the worlds biggest superpowers, America makes a huge contribution to the world’s GDP. GDP stands for Gross Domestic Product which is how much is made from the total goods and services produced. In 1960, the US GDP made up 40% of the global GDP.
Only 54 years later, the the US GDP made up only 20% of the global GDP. To be more specific the US GDP in 1960 was 543 billion out of the 2.367 trillion dollar global GDP. There are many reasons as to why the US GDP has been on such an overall decline since the 60’s. It hasn’t always been a constant decline because Reagan raised the GDP slightly and so did Clinton during his second term. From there, it became a decline that hasn’t stopped. Less and less products bought by Americans are being made in America.
One big reason for this is that major corporations in America have been leaving ever since Washington greatly increased corporate taxes to be some of the highest taxes in the world. Corporations can avoid this simply by moving to a different country. This also causes a lot of people in the US to lose their jobs. Despite America’s decline in production, many of its cities still make more than entire countries. For example, Chicago alone has a higher GDP than all of Australia. Surprisingly, even with it’s high GDP, the US still buys much more than it sells. In 2002, the US bought over $217 billion from developing nations, but the US only exported $130 billion.
Developing countries everywhere know that in order to develop, they must contribute to the global economy to be a part of it. In 2015, Costa Rica didn’t use any fossil fuels at all to power 100% of their electricity for 299 days. They use almost no fossil fuels whatsoever to power their electricity, but they still need the use of oil to power their transportation. Costa Rica also did something that most countries would consider unthinkably radical: they abolished having an army. They were able to put all their military costs towards social and electricity power development.
To combat this, Costa Rica builds battery-electric buses for transportation. Costa Rica is well on its way to abolish fossil fuels all together. Africa is addressing their issues and are moving to the mindset that they can take responsibility, and solve their own problems. Africa recognizes that no one can stop the continent from corruption but themselves. In the hopes of fixing Africa’s many issues, many African Countries have come together for things like starting an insurance group to help those affected by climate change effects like floods and droughts. Some countries are making their business private or opening up trade with countries they had disputes with before. This is opening more options for economic growth and creates more jobs for people in countries like Ethiopia. Economist Eleni Gabre-Madhin gave a speech on Ted Talks about how she plans to reinforce Ethiopian farmers so they can grow their profits and productivity.
Like predicting anything, It’s hard to say where the world’s economy will and what state it’ll be in within the next 25 years. Many economists predict a recession in the near future in America. The last couple of years, especially 2017, have been very profitable for investors. Bitcoin price continues to rise as well as major corporations, so much so that things will begin to collapse. As for the rest of the world, I have reason to believe that other developing countries will grow rather than fall under the pressure of their issues. As for Brexit, the UN is unlikely to collapse because of how much is intertwined between the countries involved.
Climate change and global warming will accelerate and the world can expect more disasters and natural catastrophes in the near future. Entire pieces of continents may fall under fatal danger by the end of or after the next 25 years which will most likely have devastating effect on the global economy. Some of the US’s biggest GDP areas will possibly be in danger from floods and hurricanes like parts of California and NYC.