Global political economy Essay Example | Topics and Well Written Essays - 750 words - 2

Global political economy - Essay Example This economic crisis caused by political issues in US later spread to other countries resulting to economical, political and social problems especially in Europe, China and Africa. It started in United States due to production of excess paper assets produced for prices of houses. The US financial system anticipated a continuous increase of prices of housing and, therefore, they created more paper assets expecting that their demand will increase, but, unfortunately, the prices of housing declined leading to a financial crisis. Europe and China had purchased the paper assets for pricing of houses and, therefore, when the prices of houses declined they were also caught up in the financial crisis. The business elites who introduced the paper assets in US violated moral and social responsibility seeking their own personal gain but not the society as a whole. This was a political issue in US financial system itself and US also wanted to dominate the global political economy through supplying of the paper assets to other countries like Europe and China. It was speculated that the financial elites who were involved in the generation of the paper assets were in conjunc tion with the political elites in the US government. This is because if the financial crisis was involved in criminality why then did the political system fail to render such actions as a crime (Gup 2010, p. 24). The financial crisis spread to Europe where it was accelerated by the European political crisis which resulted from distrust among the parts of Europe in agreements. In Europe, there has been a minority group which has long felt that the European Union was put in place to support some countries like Germany and France at the expense of others. Greece experienced a debt crisis due to Greek government failure in funding them and when they approached the Germany government to bail them out, they refused due to political tensions between them (Kolb 2010, p. 30). In China, the economic