Thanks to free trade and the war on terror
by
Wrolph
03/15/2008, 11:15 AM #
The US climbed to economic preeminence because it was forced to innovate. They were rich in resources and poor in labor, so they created labor saving devices such as the assembly line as a coping mechanism. They also didn't have to fight a lot of wars being sandwiched between passive Mexico and Canada.
All of that is changing as the world shrinks. When a country is rich in labor (eg China) they will tend towards hierarchy, bureaucracy, collusion, monopoly and corruption, and move away from innovation. In the U.S.'s most important industry, high tech, they're importing lots of labor so as to make themselves labor rich in that industry. As a result they have companies like Microsoft and Google that have massive payrolls, and yet clearly don't show the kind of innovation one would expect from a company with their resources.
And then there's the interminable war on terror that is draining the nation of its wealth.
I shudder to think that the totalitarian state of China could very well be the next sole super power.