Yesterday Jonathan Weisman wrote an article posted in nytimes.com, titled “At Global Economic Gathering, U.S. Primacy Is Seen as Ebbing.”
While quite well-researched, as well as well-written, despite the probably unintentional political slant, the column also illustrates how much even the most seasoned observers of economic issues have forgotten about how business actually works. Depending, of course, on how much they really knew to begin with.
Mr. Weisman includes many relevant examples and references in making his point, therefore a link to his article is included farther on. However, key elements follow below.
“As world leaders converge here for their semiannual trek to the capital of what is still the world’s most powerful economy, concern is rising in many quarters that the United States is retreating from global economic leadership just when it is needed most.
“It’s almost handing over legitimacy to the rising powers,” Arvind Subramanian, the chief economic adviser to the government of India, said of the United States in an interview on Friday. “People can’t be too public about these things, but I would argue this is the single most important issue of these spring meetings.”
Mr. Weisman continues, “Washington’s retreat is not so much by intent, Mr. Subramanian said, but a result of dysfunction and a lack of resources to project economic power the way it once did. Because of tight budgets and competing financial demands, the United States is less able to maintain its economic power, and because of political infighting, it has been unable to formally share it either.”
“Experts say that is giving rise to a more chaotic global shift, especially toward China, which even Obama administration officials worry is extending its economic influence in Asia and elsewhere without following the higher standards for environmental protection, worker rights and business transparency that have become the norms among Western institutions.”
Now, without going into extensive or detailed financial theories, charts and data, the fundamental cause of the U.S. ”retreat from global economic leadership,” has primarily taken place over the past six years. The basic cause being the anti-business, anti-growth, attitude of the Obama administration in particular.
Which is why the preceding quote regarding China, “which even Obama administration officials worry is extending its economic influence in Asia and elsewhere without following the higher standards for environmental protection, worker rights and business transparency that have become the norms among Western institutions,” is so ironically funny while tragic. Because it illustrates clearly, that that the “administration officials,” have no idea whatsoever about how the nation’s economy actually functions.
The administration’s approach toward free markets and business is like the Roman elite who buried enemies up to their necks in the Coliseum’s arena, then loosed unfed lions among them. However, when one buried victim bit a lion’s appendage, scaring off the beast, the crowd yelled, “Fight fair, heathen, fight fair!”
In that regard, Mr. Weisman quotes Kevin Rafferty, a former World Bank official, who wrote recently in two leading English-language newspapers in Asia that, “The United States has lost its way and is rapidly forfeiting claims to global financial, economic, political and moral leadership.” He blamed the White House: “Not for the first time, Obama has shown he can talk eloquently, but does not have a political clue how to get things done.”
Amelia, a reader from Florida added: “Predictably, most comments herein blame Republicans. I can find an equal number of commenters who'll blame the president and his party, especially Senator Reid. The country is split about 50/50, as we've seen in many elections. We'll never get beyond this if people can't divorce their policy preferences from discussions about the dysfunction of government. They are all to blame for not working out the real problems America faces. I don't see anyone seriously addressing those issues. The president is famously aloof and simply points fingers, refusing to get to know members of congress from his own party, let alone the GOP. Real leaders, as we know, crack heads or persuade. They get things done. The GOP has put forth little substantive so far since they've been in the majority. I favor one side's policy approaches, you favor another. Both sides are to blame for this mess, but I wish the president knew how to lead instead of just campaign.”
So, it just goes to prove that there are still plenty of intelligent, knowledgeable, insightful people out there. Which means that with the right kind of leadership, the nation will surely bounce back to what it once was.
Link to Mr. Weisman's story: http://www.nytimes.com/2015/04/18/business/international/at-global-economic-gathering-concerns-that-us-is-ceding-its-leadership-role.html
That’s it for today folks.
Adios
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