Our Globally Centered Economy

Believe it or not, there is a lot to celebrate about the economy as of late, both here and elsewhere.

The U.S. stock market is going strong, with the S&P 500 at an all-time record. But the German and Japanese markets are up by more, and markets in the U.K., Canada, South Korea, Taiwan, and elsewhere are also seeing record growth.

While the U.S. unemployment rate is the lowest in almost two decades, Japan’s is also the lowest since then, with the U.K. and Germany seeing the lowest rate since the 1970s.

Although America’s GDP growth is above expectations this year, so is Japan‘s and the eurozone’s (the 19 European Union countries that use the euro). In fact, the eurozone grew faster than the U.S. economy, contrary to popular belief about its imminent collapse.

The point of this isn’t to make light of our well needed economic gains, but to point out that our success is part of a broader global trend, and that we depend on numerous other countries and trading blocs to stay afloat.

Without having global partners to serve as our suppliers, consumers, and labor force, we would not be doing so well, and our economy would not be as large and diversified in the first place.

Nowadays, all our biggest and most innovative companies are multinational in character, relying on talented people from across the world to design or create their products (if not run the companies entirely). In such a globalized era, diplomacy is paramount.

Source: Vox.com

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