Challenges faced by superpowers Flashcards
How has economic restructuring created economic challenges in the USA and UK?
The collapse of primary and secondary industries led to unemployment. In 1980, 240,000 people were employed in the UK’s coal mines by 1995 this fell to 13,000. This led to the formation of the “Rust Belt” in the USA’s North East due to the closure of coal mines as well as steel-making and car manufacturing factories.
Causes and impacts of the 2007 - 2008 global financial crisis.
The main cause of the global recession was subprime lending by US banks to low-income earners with insecure jobs. As more mortgages were given out, more houses were purchased. This caused house prices to increase and interest rates to increase meaning subprime borrowers could not afford their mortgage repayments. This meant that banks repossessed homes -increasing supply, thus causing house prices to fall. People then saw the housing market as unsafe causing house prices to fall further. As banks had invested lots into properties, they collapsed, even banks which did not give out subprime loans such as those in the UK, were affected as they bought debt packages from banks which did.
This resulted in the national debt of many governments increasing, UK government debt doubled between 2007 and 2013, as bank bailouts had to be paid. Some governments favoured austerity, reducing government spending - which created unemployment, this led to social tensions and bankers being hated. Increased unemployment in the UK and Greece led to increased hatred against immigrants.
What are the costs of maintaining military power?
Naval and air fleets need to be maintained and upgraded to ensure military power is maintained however this has huge financial costs. Since 9/11 there has been an increase in the use of intelligence services to try to uncover and stop terrorist attacks before they happen. Due to how labour-intensive such services are, they are very expensive to upkeep.Space exploration in Western countries is also under threat - in 2014, the US spent 17.6 bn on space exploration however such budgets are under threat as Asian countries such as China and India are able to launch space flights much more cheaply.
There is also the cost of decommissioning and replacing nuclear weapons - seen as a deterrent. In 2016, the UK parliament voted to upgrade its Trident nuclear deterrent - which would cost between £100 and £250 bn over 50 years.
Arguments for upgrading Trident?
Deters attack the UK due to the threat of mutually assured destruction
Increases security in an unpredictable future
Removal of trident could lead to 15,000 jobs being lost
Missiles launched from subs are faster and have a longer range than cruise missiles - making them better for counterattacks despite their higher price.
Arguments against upgrading Trident?
Development of new nuclear submarines could take 17 years ( this means the benefits will not be experienced for a significant period of time)
It’s an expensive programme - with an initial cost of £45 bn (£31bbn from replacing missiles, an extra £10 bn adjusting for inflation and £4 bn in extra costs - 6% of Uk’s defence budget) - based on uncertainty. The missiles may never have to be used.
Unethical
Other issues faced by superpowers (US and EU)?
By 2025, 20% of EU citizens will be over 65 - decreasing workforce by 14% by 2030 and after 2035 the population is likely to be declining.
EU’s energy insecurity - due to reliance on imports of oil and gas from Russia and the Middle East.
Youth unemployment in the EU was 15% in 2020.
Water Insecurity in the USA’s south West
745 of adult Americans are overweight, 30% obese. Increasing healthcare costs which account for 17% of the USA’s GDP
National debt in the USa in 2020 was $25.5bn
