Since midway through George W. Bush’s tenure, there’s been a steady hum from the pundit class that America’s best days are behind it. An overreaching foreign policy, rising public debt, and a growing wave of outsourced jobs means that America will soon lose its status as the world’s preeminent power. America was quickly on its way to becoming Rome.
But the American Decline is now over (if it ever really began in the first place).
Compared with other major powers, America’s future is looking brighter than before the financial crisis. The dollar remains remarkably attractive relative to other currencies. This resilience extends to American companies. In a March report, Goldman Sachs found that foreign investors owned a larger percentage of the U.S. equity market than at any time in the 68-year history of the study. The housing market is picking up, and dependence on foreign energy is falling.
Gridlock remains the order of the day in Washington, and Congress still has record-low approval ratings. But there are policy bright spots. Congress and the administration are not standing in the way of America’s energy revolution. The Keystone XL pipeline will likely be approved. The pipeline, along with the Obama administration’s emphasis on energy independence, helps strengthen the domestic economy.
On trade, the administration has managed to convince Japan to join Trans-Pacific Partnership talks. Should the trade consortium of countries ranging from the United States and Chile to Canada and Mexico to Singapore and Vietnam get off the ground, it will liberalize trade between members that represent nearly 40 percent of global GDP — and boost American trade and manufacturing. Then there is the nascent transatlantic equivalent that Obama mentioned in this year’s State of the Union.