America Is Not Declining

Barack Obama and the next Congress will take power at a time when the financial crisis and Mesopotamian misadventures have spurred talk of America’s decline. Last week, a Russian analyst was even giddily forecasting the collapse and breakup of the United States, with Russia and China becoming joint global hegemons.

Such predictions may comfort critics and opponents of American power, but they lack any real basis. In fact, long-term demographic and economic trends suggest that the age of American dominance won’t end anytime soon.

In Futurecast (St. Martin’s Press, $26.95), economist Robert Shapiro, a founder of the Progressive Policy Institute and now chairman of the consulting firm Sonecon, examines how the relentless forces of demographics and globalization will shape the world of 2020. His analysis suggests that the United States will remain the leading global power. Europe, Japan, and China, meanwhile, have reason to worry... [snip]

In all likelihood, the United States will continue doing well in the white heat of international competition, while the highly regulated economies of continental Europe and Japan will stumble. Barring a departure from open markets, the vast and flexible U.S. economy will remain a magnet for investment that funds innovation, which will ensure that U.S. workers remain among the most productive and highly paid in the world.

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