What the United States is Doing Well, and What it Needs to Improve
Michael Weidokal
International Economic and Geopolitical Strategist, Keynote Speaker, Author and Business Advisor - Founder and Executive Director of ISA (International Strategic Analysis).
No country’s strengths and weaknesses are more analyzed and critiqued than that of the United States. This is due mostly to the immense power and global reach possessed by the United States and its pre-eminent position in global affairs over the past century. For former great powers, opinions of the United States range from jealousy at the US’ current power to disdain for its use of this power on the global stage. For countries that aspire to become great powers themselves one day, opinions of the United States run the gamut from admiration of the immense power that the US possesses to anger at the US’ role in preventing other powers from challenging its position. Meanwhile, it is clear that many countries in the world can learn much from the United States’ rise to become the world’s leading power. However, it is also true that the US can also still learn much from the world, much as it did when it rose to great power status in the first place.
The obvious place to start when assessing what the United States does well, and what it needs to do better, is the economy. Today, the US is the world’s largest economy, with a total economic output that exceeds $20 trillion. It became the largest economy in world history by doing many things well. Among the strengths of the US economy are its ability to generate vast sums of wealth and to continue to grow at a pace that exceeds that of most other wealthy economies.
In addition, the US economy is the world’s most modern and diverse economy, with the US possessing a leading position in most of the world’s high-tech and high-growth industries and services. Meanwhile, the US economy benefits from the world’s most advanced financial sector as well as from the relative ease of doing business in that country. Still, there are some areas of the US economy that need to be improved. For example, wealth inequality has risen to dangerously high levels in the US in recent years, and while the US has been able to reduce such inequality in the past, there is no guarantee that it can do so in the modern era. Meanwhile, rising costs, most notably in the healthcare sector, are another area in which the US economy needs to improve. Finally, the US needs to maintain the momentum that has produced its leading position in many high-tech and high-growth sectors in order to retain its dominant position within the global economy.
One aspect of the United States that is closely monitored by the rest of the world is the country’s living standards. For many, the US continues to represent the “American Dream”, a land in which anyone who is willing to work hard or generate good ideas can enjoy unmatched success. In fact, the US does enjoy many advantages when it comes to living standards. For example, the average person in the US owns more land and has larger homes than most of their counterparts elsewhere in the world. Furthermore, average wages and disposable income in the United States are among the highest in the world, and continue to attract highly-skilled people to the US.
Despite these major advantages, some aspects of living standards in the United States are in need of improvement. however. For example, health standards in the US trail behind many countries that enjoy far lower levels of economic development than the US. Likewise, social programs and safety nets for disadvantaged individuals are much smaller in the US than in many other countries. Finally, some minority groups in the United States enjoy much lower standards of living than others, fueling racial tensions in the US and adding to the rising level of inequality there.
Perhaps no aspect of the United States today garners more attention from the wider world that its politics. For much of the US’ history, its political system has proven to be a strength, allowing the country to come through tumultuous times seemingly unhindered as it progressed to global power status. Today, few view the United States’ political situation as an advantage, although thus far, the US political system has proven highly resilient. For many, the United States’ constitution provides both the backbone of the US’ political strength, as well as its greatest hindrance to adopting to the changes of the modern world.
Meanwhile, the US has long been divided politically, with some periods of its history being characterized by deep political divisions. However, it is generally believed that the divisions that exist today are wider than those at any time in recent decades. These divisions can be found in many areas, including by ideology as well as by region. Meanwhile, there are fears that as these divisions widen, less qualified candidates and leaders are gaining positions of political power in the US, something that could jeopardize the US’ position of global leadership.
One area in which the rest of the world looks to the United States as the unquestioned leader is security and defense. In fact, since the end of the Cold War, the US has dominated global security and defense unlike any power in history. Today, the United States’ armed forces are widely considered to be the most powerful in the world by a large margin, particularly at sea, where the US Navy dominates the world’s oceans. Other aspects of US security and defense that are admired by much of the world are its alliances with other significant military powers as well as the security afforded the US by its advantageous geographic position.
Where the US’ security and defense has been criticized has often been for the vast expenses needed to give the US its advantages in these areas and the potential for overreach stemming from US commitments in many far-flung parts of the world. In addition, the US has come in for criticism for its involvement in conflicts in many areas of the world, conflicts that would seem to provide few significant benefits for US power and security.
Another area in which the United States has played a leading role for a long time is in technological development. In recent decades, the United States has been the leading driver of technological advancement in a wide variety of fields. However, the US is now facing new challengers in many fields, including one of from China, the only competitor that can match the US in terms of scale as well as the potential for developing new technologies. At the moment, the US has a leading position in most high-tech industries and this has played a key role in the ability of the US to realize higher rates of economic growth than other developed economies.
In fact, the US’ domination of the IT sector has allowed the US to play a role akin to that of the United Kingdom during the early decades of the Industrial Revolution. Nevertheless, the United States must not rest on its laurels, as Asian rivals are investing heavily in many high-tech industries and could challenge the US’ position of leadership in many high-tech sectors in the coming years. Furthermore, the willingness to adopt new technologies must remain high among US consumers if this is to remain an area of strength for the US in the future.
With regards to the environment, the United States is in some cases widely admired and in others widely vilified. On the positive side, the United States is a vast country with a more diverse topography, flora and fauna than perhaps any other country on earth. Moreover, the United States has done more than nearly any other country to protect vast areas of its territory and to allow nature to flourish in these protected areas. Meanwhile, many US states and municipalities are among the more environmentally-progressive places in the world.
On the negative side, the United States remains a major polluter, with high carbon emissions and a relatively poor level of recycling. Furthermore, changes in the national government often lead to dramatic changes in environmental policy on the national level. Going forward, the US has the potential to play the leading role in improving the health of the world’s environment, but it is far from certain that it is willing to play this role, something that both frustrates and angers its international partners.
For much of its history, the United States benefitted from major demographic and social advantages, some of which persist to this day. As the world’s third-most-populous country, the US is home to a wealthy, diverse and growing market, something that has driven its economic expansion. Furthermore, the US has done better than any other country in history in terms of attracting high-skilled talent. At the same time, the US’ diverse population has given the country a rich culture whose influence has spread to most corners of the globe.
However, some aspects of the US’ demographic and social situation are becoming a cause for concern. For example, the United States’ birth rate has fallen sharply in recent decades and is approaching the levels seen in Europe and East Asia. Another example is the fact that violent crime remains a major problem thanks to high levels of wealth inequality and the huge numbers of guns in circulation in the US. Minority relations also remain a challenge for the United States, both in terms of minorities that have been in place for centuries as well as with regards to the changing immigration trends facing the US in the 21stcentury.
Culturally, the United States has had a massive impact on the world for more than a century. In fact, the US, whether through its film, music, literature or other aspects of its culture, has been the source of much of the culture that is dominant in the world today. Moreover, cultural trends that begin in the US typically spread around the world at an ever-faster speed thanks to modern communications. Furthermore, the fact that the United States speaks English and has succeeded the United Kingdom as the world’s leading power, has allowed the English language to grow into the world’s dominant language, something that clearly benefits the US and other English-speaking countries. For some, this has resulted in a sort of cultural imperialism, in which US culture, or derivatives of US culture, come to dominant and eliminate other cultures around the world. In fact, this has led to a backlash against US cultural influence in many areas of the world.
Without question, the United States will remain the world’s most influential country for a long time to come. For many, the US will remain a beacon of hope and an example to be followed. However, the United States must also overcome a myriad of challenges if it is to remain both the world’s leading power and a country that influences the rest of the world. Furthermore, the United States can, and should, learn from others when it comes to the challenges that it faces, and the weaknesses that prevent the US from being even more powerful and influential.
It is important for policymakers in the United States to remember that, for much of its history, the US was open to ideas from other countries, and it was this openness that allowed the US to become such a great power in the first place. History shows us that, when a great power turns inward and closes itself to ideas from outside its borders, that power eventually withers. As such, now is not the time for the US to turn inwards, but to remain the country that earns the respect and admiration of its peers around the world.
Michael Weidokal is a leading global economist and geopolitical expert, as well as the Executive Director of ISA (International Strategic Analysis), one of the world's leading global market intelligence and economic forecasting firms.
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