The Political & Economic State of the World


Courtesy of Britannica

Gabriel Benitez

The current state of the world isn’t bright. Many wars are currently fought around the globe, and both gas prices and inflation are negatively affecting the economy of the world. Many things are going on and it affects the 7.8 billion people on earth.

The war on Ukraine has affected millions of lives to this day, and it’s not just the Ukrainian people; almost every country in the world that receives trade from Russia or Ukraine is impacted as food and supply co

Courtesy of Alijazeera

st rise in the poorest nations of the world. The World Economic Forum (WEF) states, ”WTO economists have now downgraded their expectations for 2022 growth of merchandise trade volumes – the import and export of goods – from 4.7% to 3%.” This means that the global number of trades has significantly decreased and therefore may lead to economic depression in certain countries. African countries have been receiving low import levels because of the decline in trade, according to the WEO. Countries like Afghanistan, Sudan, Congo, Mexico, and more are currently at war to this day. All of these wars started years ago and are ongoing; the current death toll reaches over 5 million.

Gas prices have been increasing because of the war on Ukraine, however, that is not the main reason for the problem. Middle Eastern Countries like Saudi Arabia and the United Arab Emirates have been economically damaged because of the drop price of Russian supply. The United States is also a top oil producer in the entire world; producing over 16 million barrels per day. According to the New York Times, “Even before the invasion, prices of oil and gasoline were rising as the world gradually recovered from the Covid pandemic. For a brief moment in 2020, the cost of a barrel of oil fell below zero because storage tanks were full from the lack of demand. Now, commuters and vacationers are back on the road, and offices and industries have reopened. “ This means that because of the global pandemic in 2020-21 gas prices have been decreasing and now that the pandemic is no longer seen as a threat currently, the gas prices are rising as people continue to use motor-based vehicles to get around their community.

Courtesy of US Energy Information Administration

The ongoing situation of inflation is something that affects many countries in the world, such as Turkey, Syria, and Venezuela. According to a chart on macro trends, the lowest cost for a barrel of oil in the United States was in 1998, which was $14.89 in the Average Closing Price(ACP). 24 years later, after fighting many wars in the middle east and then the ongoing war in Ukraine, the price for a barrel of oil reaches $100.23 in the ACP of 2022. In a nutshell, inflation is the price of goods and services increasing because of high demand. This can be prevented if governments increase taxes, which usually doesn’t do well since it usually leads to civil unrest and protest movements.

Wars are being fought not just in Ukraine but all over the world. Inflation is causing economic problems for many people around the world. Although the current state of the world is not the greatest, it won’t last for long. Gas prices may go down due to the development of electric cars and inflation will slowly decrease year after year. The current wars in Ukraine will end at some point, and the people will soon be happy after the war ends as the governments starts rebuilding.