ocrebel_IHB
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<a href="http://online.wsj.com/article/SB123189377673479433.html">By The author of "The Rise and Fall of the Great Powers"</a>
American Power Is on the Wane
- Thread starter ocrebel_IHB
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Rocker_IHB
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It happened to the UK, why not the USA?
I tend to agree, the irrelevancy of the USA as an economic super power has started, though it will be a very slow process, same as the UK, they were the #1 economy in the world for long time, and certainly they are not as relevant today as they once were.
I tend to agree, the irrelevancy of the USA as an economic super power has started, though it will be a very slow process, same as the UK, they were the #1 economy in the world for long time, and certainly they are not as relevant today as they once were.
O
Oscar_IHB
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America's "power" was based on the ability to produce goods the rest of the world needed. We gained that position by default because we were the only country left with an intact manufacturing base after World War II. As the world regained it's own ability to manufacture goods for export, American power began to wane. It's not hard to predict that this 40-year old trend will continue (regardless of current economic circumstances). This argument could also be applied to Germany and Japan, but the author is either unaware of the historical reasons for our "power" or is pushing an agenda. Considering the article focuses almost exclusively on American debt and trade deficit levels, as if the natural order of things puts America at the top of the exporter food chain, while the author is gnashing his teeth over the prospect of Obama trying to buy us back into financial well-being I think it is safe to say he has an agenda. While I have no quibble with that agenda, I do wish people would be direct about it rather than trying to couch it in terms of nationalistic pride.
I'm totally against trying to spend our way out of this, because we have a clear 20+ year record of trying this approach and it always results in bigger busts down the road. That suggests that even in the (highly unlikely) event that we are successful in papering over this downturn, we are only setting ourselves up for a larger one in a few years. I have no problem with other countries becoming our equals on the national stage, but I am not comfortable with a process that bankrupts this country to achieve this parity. Not to mention the common side-effect of increases in "temporary" government spending that was justified by the "emergency" always seems to wind up becoming permanent, thereby setting the bar even higher when the next crisis comes.
I'm totally against trying to spend our way out of this, because we have a clear 20+ year record of trying this approach and it always results in bigger busts down the road. That suggests that even in the (highly unlikely) event that we are successful in papering over this downturn, we are only setting ourselves up for a larger one in a few years. I have no problem with other countries becoming our equals on the national stage, but I am not comfortable with a process that bankrupts this country to achieve this parity. Not to mention the common side-effect of increases in "temporary" government spending that was justified by the "emergency" always seems to wind up becoming permanent, thereby setting the bar even higher when the next crisis comes.