The U.S. is losing its top spot in the economy, experts say

The United States government is far divided, which could cost the nation its top spot in the economic world. As it slips toward ceding its supremacy, the United States could be handing over its power to other, faster developing nations.

“It’s almost handing over legitimacy to the rising powers,” said Arvind Subramanian, the chief economic adviser to the government of India, in a New York Times article. “People can’t be too public about these things, but I would argue this is the single most important issue of these spring meetings.”

Graph_of_Major_Developing_Economies_by_Real_GDP_per_capita_at_PPP_1990-2013

There are several reasons for the United States slipping, but people can be sure that the fall is by no means voluntary. The U.S. is reeking of political infighting, along with financial strains of its own. Internal problems can often overwhelm the government. How does a government hold onto international status if it is having trouble within its own country?

“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,” according to the New York Times.

China has been seen as less stable in recent years, due to a diminishing growth factor, but the nation is still rapidly developing. Experts have debated China’s future, and the superpower’s economy is not headed for an inevitable disaster.

“At what point does the rickety architecture of civilization begin to collapse? What are the limits of American power? Americans are an optimistic people. But make no bones about it – we are in decline, and our standard of living is bound to be reshaped, as other centers of economic growth reconfigure the world order. The 2008 financial meltdown, initially caused by Wall Street greed and irresponsible risk involving some $33 trillion in credit default swaps that few people involved fully understood not only dragged down the U.S. economy, but also the global economy…It was the emerging nations, not only criticizing the U.S. for dragging down global markets but also it was China, Japan, and Saudi Arabia surfacing as the nations with fat wallets and the likeliest candidates to assist distressed countries – all symbols of the shifting landscape of economic power and the future test of the American economy.”

-Allan Ornstein, Wealth vs. Work: How 1% Victimizes 99%, p.18

What do you think of the U.S. economy? Is it in decline, or do you still see glimmers of hope in the seams of the nation?

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