How important is America’s economy to the rest of the world? | Video

Transcript

Treasury Chief Jacob J Lew said the world is looking to America to drive the global recovery. Is this the case? World Finance speaks to Ryan McMaken, Editor of Mises Daily and The Free Market, to discuss how important America’s economy is to the rest of the world

World Finance: Treasury Chief Jacob J Lew said the world is looking to America to drive the global recovery. Ryan, is this the case? How important is America’s economy to the rest of the world?
Ryan McMaken: Even with all of America’s troubles, there are 300 million people in America and they do have money, still. There’s still a lot of capital that was created during the twentieth century in this country and we’re still taking advantage of it, and still able to use it.

So, as a place where you you can sell your goods globally, in terms of a place where there are many investors looking to invest, the United States is still very important, there’s no denying that.

World Finance: Well the US and China could very much be described as “frenemies”, so how much do they need each other?
Ryan McMaken: Well, if we really want to increase the well-being of both people in China and the United States, free trade is always a good way to do that. So as long these two countries can get along and continue to trade, even if it’s not totally free trade, just some trade is certainly better than no trade.

Certainly the better those countries get along, the less they get caught up in foreign policy that’s belligerent, the better that’s going to be, not of course just for the people in those countries, but globally as well.