No

by Ashley Smith

Created on: October 28, 2009   Last Updated: October 29, 2009

Having a single global economy may sound a simple idea but it is fraught with massive complications and is not nearly worth the effort. For a very basic point, no government would be able to force their countrymen to throw away their currencies for a global currency. Many countries in Europe have struggled to get the euro into their countries. This was in a group of countries on similar monetary levels, included no real dictatorships and no third world nations.

None of the countries who joined or have failed to do, so far have massive debt, have unstable governments or have serious religious divide. All of these things the euro countries don't have happens all over the world in numerous places and would have to be factored into a global economy.

There are many countries who survive on pure exports, they trade on giving best prices and compete in the global market with the rest of the world. A single currency would eradicate this trade as there wouldn't be any competition in trading. Equally the countries that survive totally on imports because they don't make or grow goods, would struggle as the importers wouldn't be able to import goods at competitive prices. Whole economies could fail en-mass.

These that export only and those that import only could be linked by trade, if they both fail they both collapse. Also on top of this, when the trade falls, the ship builders fail, the sailors fail and the ports on shipping routes fail. Add in to this the countries that the ships may have called in en-route between other ports and they may not have the trading routes they once had either and the problem spreads.

The best way to explain is the sale of a Japanese car sold in America. The car is made by a group of people in a factory from parts that have been sourced form a number of countries, the car goes in the boat and sails to America. It is taken off the boat, checked by customs and then is driven to the dealer. When it arrives, it's sold and the money is distributed through the chain. If the dealer cancels the order because the global economy means it's no longer economical to import, then everyone in the massive chain fails.

Also you have to factor so much into this that the costs will cripple the economy before it starts. Imagine changing every cash register, every price label and every website selling anything. Then factor in the recall of money from a couple of hundred countries and the printing of billions and billions of notes and coins. Its not nearly worth the effort and the negatives crush all positives.

It will cause far more problems then it could hope to solve and would bring more countries down then it would rise the poorest countries. Above all it would bring the dictators and depots up to the economic level of first world countries without considering billions of pounds of debt and inflation rates in the thousands.

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