Recently economic issue about Wall Street Journal - Essay Example

Macro and micro economics Josh, Zumbrun and Nick, Timiraos. “Global Growth Woes Threaten to Beset U.S. Economy.”The Wall Street Journal, (2014). The main strength of this article is the impacts of the woes of globalization growth of the United States economy and other countries. The spirit of deflation taking place in China and Europe is highly threatening the economic growth of United State. A change in foreign markets due to globalization growth has hindered the growth and expansion of the economy of United State.

The United States is currently growing and developing on its own (1). According to Eugenio Aleman, Wells Fargo economists, under the current situation, the United States will face challenges in trying to grow to its long term. The country will highly need assistance from foreign countries in order to grow effectively. Apart from the challenges being posed by Europe and China, United States also face other economical crises such as decrease of commodity prices, the current instability in stock markets, and decline in demand and output in big developing markets such as Brazil.

Another aspect affecting world’s economic status is the political tension in many countries resulting from the current Ebola virus outbreak (2). Although United States is the world’s economic growth engine, with many countries not performing may negatively affect the country’s economic growth.Another factor that affects the U.S. economic growth is the rigid economy that has being affected by years of uneven growth. According to estimates made by Goldman Sachs economists, tight conditions of financial market can shave approximately 0.

3 percent from American’s economic growth before the end of next year. However, if the bonds and stocks’ weakness proves to be temporary, this hit would decrease by approximately half. The global financial crisis has resulted in a decrease in revenues of the big business organizations in the United States such as McDonald’s Corp. both the internal and external factors affecting the country’s economic growth have proved to be more severe and formidable than it was expected.The author of this article, Josh and Nick, try to discuss the global financial issues that are currently affecting the economy of the world.

According to the content of the article, global economic crisis started to affect the world’s economy in the year 2008. The increase of global financial crisis, have resulted to decrease in world stock. In addition, big financial organizations are collapsing, and rich countries’ governments have started to come up with a rescue package that will aid in overcoming these crises. Some impacts of global financial issues that affect the world’s economy include, negative effects on world’s financial system, bailing out those accountable, and putting more suffering on the remaining world portion (15).

Ironically, many African nations may not be negatively affected by the financial crisis if the entire continent integrates with other countries. However, the rich African countries who participate in economic activities with developed countries may be highly affected by these global crises. In addition, global monetary crisis increases the rate of poverty in many poor countries especially African countries. This state of poverty has resulted in political, social, and economical impacts in the affected countries (10).

In conclusion, the global growth woes are currently affecting the economies of many countries both the developed and undeveloped. One of the main factor affecting economic growth and development in many countries is the decrease in prices of commodities such as oil and gas. Therefore, the government should seek to come up with effective measures to address the current global financial issues.Work citedJosh, Zumbrun and Nick, Timiraos. “Global Growth Woes Threaten to Beset U.S. Economy.”The Wall Street Journal, (2014).