The last decade has been a time of worldwide. Banks and investors have been struggling to catch up and meet the demands of a globally interdependent economic climate; while countries such as China flourished and became the world’s largest exporter, and the world inherited more millionaires worldwide than ever before.
These statistics are deceiving however, since the gap between the financial classes is rapidly increasing, almost eliminating the middle class in some countries. Corrupt banking and the fall of the housing market in the U.S. played a large factor in the volatile market, but cannot take full responsibility for the global condition.
Greece’s overly high national debt along with Ireland, Spain, and other Eurozone countries’ failing financial structures sank the European economy deep into the global recession pulling the euro down with it. Even with so much of the world struggling to climb out of the global recession, a handful of countries have managed to maintain a solid economic standing.
Although the housing bubble burst in the U.S. created havoc across financial sectors around the world, it was not the only contributing factor. Many countries’ inability to maintain a Gross Domestic Product (GDP) standing high enough to offset their national debt was another key element. China’s ability to produce products at an extremely low cost due to an almost unlimited work force made them the go to for cheap products and staff outsourcing. China’s ability to provide products and labor at a cheap price, along with their willingness to buy up other countries debt has made them the world’s largest exporter and one of the strongest economies in the world.