Over the past five decades, America has gone from being as a creditor nation to a debtor one. With debts equivalent to 94% or so of its GDP, uncertainties about long-term economic growth and diminishing competitive advantage over its export rivalries, it is in most person’s view the future of America is in jeopardy. In worst-case scenario, the sudden debacle of United Sates will be a catastrophe for the world. On the contrary, I feel that it is naive to share the view that America Deficit is taking place. In 2008, Hilary Clinton told many Americans who has been with great concerns about the future of their beloved country that “America is still around”.
In 2007 alone, US consumers accounted for ¾ for global consumption. United States has been the largest contributor to United Nations annual budget and also plays a financially leading role in other fields. On the surface, US seems in decline but the true is just the opposite. The top leaders of two fast-emerging countries have been optimistic about the country that has held the title as world-largest economy since1890. PM Wen of China in an interviewed with Fareed Zakaria implied that US economy is of a solid foundation. As for PM Manmohan Singh of India expressed far-reaching view that US economy will eventually healthily bounce back in his latest visit. It is the question of long term economic prosperity that made US leaders to temporarily suicide their country. Invasion of Iraq by US in 2003, financial crisis of 2007 and economic crisis of 2008-2011 are the two most important factors that turned bad luck to United Sates.
For sure, Americans want their country to be still the top for decades to come. Answering the call of the duty, Bush devised a pretext accusing Iraq of having Weapon of Mass Destruction (WMD) that some analysts called Bush’s Big Lie. Bush financed war in Iraq with deficit, some wrote. However, United States, after the mayhem in Iraq, will do business only with one of world most-oil-rich country, third only to Saudi Arabia and Russia. Most importantly, Iraq War divided the Islamic World which ran counter to US best interest. For Bush, a United Islamic World is not a challenge but a threat to his country. Furthermore, the present of US soldiers in Middle East has stabilized the region much than it was before. So, energy security is no longer his country best concern. America is a developed country that deals successfully with energy security.
US-made crisis of 2007 promoted China status in global stage. US will get benefits from a faster emerging China’ middle class that eventually lead to a reduction in debts and deficit. After the crisis was a little bit away, Obama signed into law the “Wall Street Reform Act” that minimized the gain of the rich at the expense of the poor (To be covered in details in my coming book). All in all, rather than saying that American is in decline, we should say that America is in transition instead.