The U.S. economy grew by an impressive 5.2% in the third quarter of 2023, and the International Monetary Fund expects growth to be 2.1% last year, compared to other developed Western countries such as Canada, Germany, and the United Kingdom. significantly better than. Inflation is falling sharply, real wages are rising, and manufacturing employment is booming. It is difficult to find another country where so many measures are pointing in the right direction.
The overall picture is even more positive. As I write in the latest issue of Foreign Affairs, the United States has been outperforming its competitors on a variety of important metrics for some time. The Financial Times analyzed a variety of ways to compare the US economy with the European economy and found that the US has “outperformed” the UK and the Eurozone for 20 years in terms of per capita growth, Spain, It “dwarfed'' the economies of France and Italy.
The U.S. technology sector dominates the world in a way no other country has ever seen before. The top 10 U.S. tech stocks are now worth more than the Canadian, British, French and German stock markets combined. The United States is the world's largest producer of oil and gas. With one of the healthiest demographics in the developed world, with approximately 1 million legal immigrants per year, the United States is certain to continue to grow while Europe and Japan are expected to gradually decline in population. It has become.
The world sees what Americans don't see. The United States is now viewed more favorably than China in 22 out of 24 countries, according to the latest Pew Research Center poll on the subject. When asked whether the United States or China contributes more to world peace and stability, the difference is wide among important Asian countries. In Japan, it's 79 percent versus 14 percent. In South Korea, it was 74 percent versus 13 percent. And in India, it was 70 percent to 33 percent, all in Washington's favor.
I know that many will bring up a number of global crises, including the bloody standoff in Ukraine, the tragic war in Gaza, and the dangers surrounding Taiwan. Others will acknowledge the good points but argue that U.S. domestic politics trumps them all. Our deeply polarized society will be paralyzed by the looming trial of Donald Trump, the insane election that follows, and the possibility of a constitutional crisis over its outcome.
These are all true. America has serious problems. Which country doesn't? But we have survived this type of crisis before, and I'm sure we will again.
last summer, Nikki Haley tweeted“Do you remember when you were a kid, how simple life was, how easy it felt?” I was imitating what he would do.
So let's go back 50 years to those heady days in 1974. The United States had just suffered its first major military defeat in Vietnam. The Soviet Union was widely believed to be on the offensive around the world. Germany's chancellor has resigned in the wake of the spying scandal. Spain was still reeling from the recent assassination of its prime minister by Basque terrorists. Prime Minister Golda Meir was forced to resign as Israel was barely recovering from its near-death experience during the Yom Kippur War. The Arab oil embargo nearly tripled oil prices, creating a new combination of low growth and high inflation that has been described as “stagflation.'' Domestically, American cities were still reeling from the riots of the late 1960s, when forced busing tore communities apart. Ah, Watergate turned the political system upside down. To avoid impeachment, the US president resigned in August 1974. This is the first time in history. Yes, the good old days when life was simpler.
The truth is that the United States has the power and ability to meet today's crises, perhaps even stronger than in the past. But companies need to regain perspective and, above all, regain confidence in their own enormous strengths.