How Are The Finances of the United States and Singapore Similar?
Financially these two countries are interconnected in our globalized world. Here are both countries GDP percentage growths for the last thirty years:
These countries are associated financially. In 1982, 1991, 2001, and 2009 sharp canyons affect both lines of data. Each gulf corresponds directly to a specific global recession. The 1982 dip is backlash from the 1980’s energy crises. The inflation epidemic of the early 1990’s caused the 1991 recession. Popping of the internet bubble in 2001 caused a major dip in both countries. Finally, fallout from the 2008 banking crises is seen in the 2008 and 2009 chasm.
Only in 1998 does Singapore act independently from the United States. During this year Singapore was negatively influenced by the 1997 Asian Financial Crisis. Despite being thousands of miles away from this regional problem there is a noticeable stun in America’s economic growth as well. These several associated data points mean these countries are financially related.
Are Measurements of Human Capital Similar?
Human capital is an abstract term that attempts to quantify the collective value of the education and habits of a citizenship. One good indicator of this is Internet usage; access to international data and technologies revolutionizes education at home, in schools, and in the workplace. Below is a comparison between the United States and Singapore numbers of internet users.
The data is skewed left with a steady incremental increase every year until both counties. At 2002 for the United States and 2004 for Singapore the data levels off and the numbers of new internet users decreases. The United States pioneered the Internet, so they have more widely spread usage. However, Singapore follows the United States timeline closely; during most years the numbers of internet users in Singapore is the same percentage of users the United States had two years prior. Here is the Internet usages growth compared in relation to each other at this staggered relation:
In this examination the positive values represent when Americans gained more internet users than the Singaporean and the negative values represent when the Singaporeans gained more users than the Americans. The same internet bubble that exploded in the GDP growth percentages can be seen building in both countries. Between 1998 and 1999 the Americans lose smaller and smaller incriminates as they rapidly proliferate the first internet startups. Following two years behind, in 2000 and 2001, Singapore establishes record numbers of internet users as the internet bubble balloons over Eastern Asia. These statistics are all interconnected just as the countries are.
What Lessons can America take from the Singapore?
The primary lesson from this analysis is that we are all connected. When America triggered a recession by bankrupting Lehmean Brothers in 2008 it triggered a recession that terrorized Singapore. Likewise, when the 1997 Asian Financial Crisis rocked Singapore America was also negatively affected. However, this relationship works both ways. The Internet has brought a new age of prosperity to America and Singapore. Perhaps their architecture techniques will return to America and allow us to better utilize our own space. As the world grows more globalized the altruistic options only proliferate.
“Inflation, Consumer Prices (annual %) | Data | Table.” Data | The World Bank. Web. 31 Oct. 2011. <http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG>.
“List of Recessions in the United States.” Wikipedia, the Free Encyclopedia. Web. 31 Oct. 2011. <http://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States>.