Michael Watts | Critique of "America’s Economy is Outperforming Rivals Because the U.S. Is Excelling at Globalization"

Michael Watts

6/25/13

Kassens

ECON 122

(See article here)

Critique of “America’s Economy is Outperforming Rivals Because the U.S. Is Excelling at Globalization”

            In this article, the author states that because of globalization, which is the process allowing financial and investment markets to operate internationally, mainly resulting from deregulation and improved communications, America’s economy is growing and performing better than other developed economies around the world. He supports this assertion by providing positive reports, such as unemployment decreasing, consumer confidence increasing, and personal debt returning to normal levels. Therefore, these reports reveal that the American economy is flowing smoothly and at a steady rate.

            Those who should be acknowledged for this economic shift are the Federal Reserve and businesses who have been dedicated to globalization for the last two decades compared to
Europe. Furthermore, Bill Clinton and President Barak Obama stimulated global trade and improved the economy. Bill Clinton enacted NAFTA (North American Free Trade Agreement), created the World Trade Organization, and drew China and other nations into a global trading system. President Obama is working on negotiating a new trade deal with several other countries.

In class, I learned the importance of capitalism and how it affects economic growth. Globalization provides opportunity for American companies to compete against those countries with stronger developed economies. Also, globalization enables the U.S. to aid those countries with weaker economies to become stronger, and thus, developing more goods and services and increasing supply and demand. As a result, this will increase employment and increase GDP (Gross Domestic Product), the total market value of all goods and services produced within a country annually. Furthermore, I learned that one of the functions of the Federal Reserve was to conduct monetary policy by setting short-term interest rates. In this article, the Fed kept the interest rate low, but because of globalization, markets didn’t move and the interest rate may potentially increase.

Julia did an excellent job of analyzing the information from the article to explain that globalization is impacting the U.S. in a good way and how it occurred and advanced through Clinton’s, Obama’s, and the Fed’s ambitious actions by creating organizations, deals, treaties, and other pacts. Furthermore, she did a nice job with how she formatted and worded her blog entry in a way where it could be easily read and understood, she even explained what globalization meant in layman’s terms for those who never heard of it. I also like the fact how she used a couple direct quotes to support her statements on her interpretation of the article.