Wider economic divide

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Description:

[1] The world economy is undergoing the drawbacks of being connected to the US economy since the end of World War II. Currently, due to the developing countries, it seems that the world economy is able give up the adherence to the strongest economy worldwide. The US economy stepped into a regression phase in 2006 and the interest rate started increasing since 2004, thereby affecting highly indebted families. This led to significant real estate crisis, which contributed to a decreasing investment in real estate and a drop in the prices of properties. [2] World inequality increased until about 1980 and then narrowed – especially due to Asia. [1] In fact, other countries of the world have started to replace the US economy as the engine of the world economy. Asia, with the increasing economic power of China, and European Union, with the dynamism of its members in Central and Western Europe, have witnessed one of the most substantial growth rates. These started in 2001 and surpassed the US economy in 2007. In 2006, the contribution of the US economy to boosting the world economy was 21%, while China contributed 12.5% and the European Union 22%. This is considered promising as it shows the world is less liable to comply with the US demand and debt. The boom has driven the international bodies in the UN, as well as NGO’s to show an interest in distributing resources for the benefit of the largest share of the population. [4] Inequalities are ingrained in the laws of motion of capitalism