States cannot afford another decline like that which has characterized the past
decade and a half.... [O]nly self-delusion can keep us from admitting our decline
For all our optimism, Americans have always worried about
our place in the world. It's in our DNA, and it helps drive our renewal. To borrow
from the great political scientist Samuel Huntington, "[T]he United States is
unlikely to decline so long as its public is periodically convinced that it is
about to decline. The declinists play an indispensable
role in preventing what they are predicting."
When Kissinger wrote the above words in 1961, he did have
some valid concerns. At the time, the U.S. economy was struggling to grow its
way out of a recession. The Soviet Union had launched
the world's first artificial
satellite, known as Sputnik, into orbit. The nation went into a panic, thinking
we had fallen behind in technological innovation and would soon be outspent and
outmatched by Moscow.
And yet the decade and a half that was the subject of
Kissinger's fears -- the period from the end of World War II until John F. Kennedy's
administration -- is now seen by most historians as an era of unparalleled
American economic growth and power. The decade that followed was even more
prosperous, ending with the United States, not the Soviet Union, making the
first lunar landing. And a mere 30 years after Kissinger wrote those words, the
Soviet Union had ceased to exist entirely.
Every 10 years or so, a new bout of profound pessimism has
swept the nation. In his fine book, The Myth of America's Decline, the German journalist and author Josef
Joffe documents these periodic waves of declinism.
Declinists in the late 1960s asserted that the cost of the Vietnam
War and social and racial tensions would bring about what one prominent historian called "the unraveling of America."
In the 1970s, declinists signaled the end by pointing to
inflation, oil shocks, and unemployment. An ally fell in Iran and the Soviets
invaded Afghanistan. In the 1980s, Americans looked with awe and fear at Japan's
growing economic strength, and historians said we would soon become one of
history's forgotten empires. But in each instance, the sky didn't fall, the
United States didn't sink into the ocean, and it remains the most preeminent
nation on Earth.
We need to be humble about our ability to predict the future
with certainty, but the evidence is that there has long been a tendency to
underestimate America's staying power.
Today, the declinists
are back, arguing that China will soon overtake us and that our gridlocked
politics, long-term deficits, and decaying infrastructure will prevent us from
playing the same global role that we have since World War II.
We must take these concerns seriously and not assume that America
will retain its primacy simply because declinists in the past have turned out
to be wrong. Leadership is not something the United States has by happenstance --
it is something we have had to earn over and over again.
So how do we actually quantify power? Former National
Security Advisor Zbigniew Brzezinski, in his latest book, Strategic
Vision, assigned the United States a
strategic balance sheet of assets and liabilities. His framework sets up a
useful way of analyzing where we stand today. We certainly have strategic
liabilities that we cannot ignore. But what is sometimes lost in the periodic
wringing of hands is just how extraordinary and enduring America's assets are --
first and foremost our ability to deal with whatever challenges may come our
Measuring power in today's globalized world is a complex
task. A country's strength and influence go beyond the old, one-dimensional
quantifiers that we used to use, like steel outputs and troop numbers. While
our military might is tremendous and essential, power today is more often
exercised through economic vitality, the capacity for innovation, a vibrant and
stable political system, and a resilient society.
It is not measuring strength in one or two dimensions that captures
a country's position, but rather the accumulation and the interaction between these
assets. Here, then, are five of those core strengths:
More than anything else, the American economy is the
wellspring of our global leadership. There are not a lot of iron laws of
history, but one of them is that a nation's power is directly related to its
economic strength. As President Barack Obama has
said, "Our prosperity provides a foundation for our power."
The 2008 financial crisis tested our resilience and dealt a
real blow to our international prestige and authority. Long-term challenges
remain. But the fact is that no country comes close to matching our fundamental
economic strength. The U.S. economy is built on a sound structural foundation,
combining an entrepreneurial orientation, deep and efficient capital markets,
highly experienced managers, and strong technological leadership.
By every measure, the United States has the largest national economy in the world today,
generating nearly $17 trillion in GDP. Our economy is nearly double the size of
the second-largest, China's. Our stock market capitalization is five times
bigger than China's. We lead the world in attracting foreign direct investment
and are also the world's largest single investing economy.
An economy's most important asset, however, is not its sheer
size. China's enormous population base
will put it on a path to become the largest economy in the world at some
point in the future. But history shows that size alone has not been the most
important factor in determining the most powerful nation. At the peak of Britain's
global power, it was China that had the world's largest economy, even though the
country was then a middling power in the throes of what the Chinese refer to as
their "century of humiliation."
A far better measure of an economy's health is its quality
and sustainability. We have the wealthiest large economy in the world, as well as
one of the most diversified and technologically advanced. China has a very
large economy, but it's still a poor country. According
to the World Bank, U.S. GDP per capita is $53,143; China's is $6,807. That provides an important perspective.
And when we look to our prospects for the future, it's clear
that the United States is well poised to maintain our leading position. Think
about three aspects of our economy: innovation, energy, and higher education.
First, the United States has an innovation edge over the rest of the
world. Apple, Google, Facebook, Twitter -- all are synonymous with American
economic vitality today, but only one of these companies existed 15 years ago. The
eight largest technology companies in the world by market capitalization are
based in the United States. And when it comes to the next frontiers in extraordinary
breakout technology, like 3-D manufacturing, artificial intelligence, nanotechnology,
cloud computing, robotics, big data, and advanced material science, American entrepreneurs
and companies are leading the way.
The United States also leads the world in research and
development, with a projected
$465 billion in spending this year -- that's over
30 percent of all global R&D.
Like so many of our strengths, our innovation advantage
didn't happen by accident. It stems from the combination of a risk-taking
culture, significant investment by the American government in research, the
best universities in the world churning out good ideas, and the kind of
regulations and access to liquid and deep capital markets that make it possible
to turn those ideas into businesses. And all these strengths come together in
Silicon Valley, which represents to the world our spirit of creativity and
A second -- and frankly unexpected -- U.S. economic asset is
our national energy outlook.
For most of the past 40 years, the United States thought of
itself as a nation dependent on oil and energy-related events beyond our
shores. Now, as U.S. innovation and technology allow us to tap unconventional
resources, nearly every prediction about our energy future has been turned on
Today, the United States is the No. 1 producer of natural
gas in the world, and the price of natural gas here is a fraction of what it is
elsewhere. The International Energy Agency projects
that the United States will be the world's largest producer of oil by the end
of the decade. Unconventional energy will propel our economy and support
American jobs -- nearly
900,000 by next year will come just from shale gas.
Meanwhile, our new energy security is allowing us to engage
the world from a position of strength. It gives us the latitude to support
allies and, if need be, punish adversaries. The success of the international
sanctions on Iran, for example, was made possible in large part because Washington
was confident that increased American supply afforded it the possibility of removing
a million barrels of Iranian oil off the market each day without dramatic
increases in gasoline costs to U.S. consumers. And it was the bite of those
sanctions that ultimately brought the Iranians to the negotiating table last
Like our success in innovation, this energy renaissance did
not happen by accident or because of luck -- it is truly an only-in-America
story. Many other countries have promising shale deposits. The reason that
the United States has seen such dramatic and fast-paced energy changes is
because decades ago, we made wise, significant investments in key technologies,
and we have the right balance of an open investment climate, an innovative and
entrepreneurial spirit, environmental safeguards, infrastructure, and property
ownership rights. Today, the wide availability of cheap natural gas in the
United States has become a major competitive advantage for our energy-intensive
manufacturers, particularly compared with Europe and China.
Meanwhile, the reduction of energy imports has brought our trade deficit to a four-year low, which allows a
greater share of the money Americans spend on energy to remain within the
country. We also now have the opportunity for the export of both natural
gas and crude oil to the world, which will support our allies, stabilize the
world's energy supply, and expand our own prosperity.
Another source of long-term economic strength is America's higher
education system. Our universities are the envy of the
world. We are home to 17 of the top 20 research universities. Our scientists
publish far more papers in prominent journals than those in any other country. In
2013, a record 820,000 foreign students were enrolled at U.S. universities.
Warren Buffett summed it up nicely in his latest
letter to his shareholders: "I have always considered a 'bet' on ever-rising
U.S. prosperity to be very close to a sure thing. Indeed, who has ever
benefited during the past 237 years by betting against America? If you compare our country's present condition to
that existing in 1776, you have to rub your eyes in wonder. And the dynamism
embedded in our market economy will continue to work its magic. America's best
days lie ahead."
Military might and alliances
By any measure, our military power is unmatched, and that's
not likely to change anytime soon. In terms of sheer size, the United States
spends more each year on defense than the next 10 nations put together. Our
defense budget is more than five times bigger than that of our nearest
competitor, China -- despite that country's rapid military buildup. Even after
13 years of war -- the longest period of continuous conflict our armed forces
have ever seen -- we remain capable of defeating any adversary.
But even these measurements underestimate our military's true
advantages. The U.S. Navy owns 11 of the world's 20 aircraft carriers, making America
the only country on Earth with a truly global power projection. With more than
a decade of experience fighting terrorism, our special operations forces have
become a unique American asset. The May 2011 raid on Osama bin Laden's compound
in Abbottabad, Pakistan -- over 7,000 miles away from the United States -- was
only the most visible example of how our battle-tested special operators
successfully execute complex missions in dangerous places across the globe.
And by historical measures, the current U.S. defense burden
is not excessive as a share of GDP. As we wind down the war in Afghanistan, our
military now stands on a more sustainable footing, without the kind of
overstretch that some have worried about.
possess a network of formal alliances with over 50 nations -- the largest in
history. Centered on our treaty alliances in Asia and Europe, this
network has been built for over half a century on a bipartisan basis. No other country can look to
anything like it. These enduring partnerships are
a unique American strength, and we continue to deepen them across the globe
The luck of geography
Geography and natural resources are our most natural advantage.
These enduring strengths are rarely discussed, but they have provided for the
safety and prosperity of the American people from the days since the first
settlers arrived. We are an Atlantic and a Pacific power, an American and an
Arctic nation. We are protected by oceans and peaceful borders. We live in a
hemisphere of mostly stable democracies, and we enjoy friendly, productive
relations with our fellow American states. The bottom-line strategic point is
that the United States does not face any real threats in its own hemisphere.
Almost uniquely, the United States is not a dependent power.
In addition to our energy resources, we have other diverse and valuable sets of
natural resources. The United States has the largest deposits of rare-earth
minerals at a time when competition for those resources is on the rise. Our country is situated on the largest
fertile land mass, helping make us the breadbasket of the world. We are the
largest food exporter, and our rich farmlands help insulate Americans against
price shocks and food shortages. None of this means that the United States can
afford to ignore what takes place beyond our shores -- our interests are too
great and the fate of nations is too interconnected -- but it provides us
greater latitude to pursue our interests across the globe.
Demography and immigration
are likewise blessed to have a bright demographic future. Our workforce is
relatively young and still growing. Between now and 2050, the U.S. population
is expected to grow by nearly
100 million people, expanding our workforce by 40 percent. Contrast that with
the populations of other developed nations in Western Europe, Japan, and South
Korea, which are aging and shrinking. By 2050, the median age in China will be nearly 50; in the United States it will be 40.
A big part of the reason our demographic profile looks
better than the rest of the world's is that we are a nation of immigrants. Immigrants
are both younger than the population at large and participate in
the workforce in larger numbers than those born in
the United States. Immigrant communities are also a tremendous source of creativity, and the United States has a distinct
advantage over other developed nations when it comes to attracting highly
skilled immigrants. Foreign entrepreneurs and scientists choose to make
the United States their home because it is easier to enter our labor markets
and move within them than in any other developed country. Our open society
allows for more seamless integration than anywhere else.
That's why it's so important for Congress to pass a
comprehensive immigration reform bill. Reform is not just a domestic issue -- it's
a strategic issue -- and it's crucial to locking in our global advantage in
The virtues of leadership
asset is America's unique global leadership role. For generations, Americans have
taken up the mantle of leadership in a world torn by war and scarred by
oppression. We have repeatedly put American blood and treasure on the line to
defend our values and advance universal rights. The world still expects us to
lead today. People everywhere look to America to protect global
commerce, ensure the free flow of energy, and control the spread of dangerous
countries have leverage. But there is a very big difference between leverage
and leadership. The United States brings to bear more
than just resources. It has an unmatched ability to convene countries and
coordinate international efforts. That's because of the attractiveness of our
ideas, our tradition of leadership, and the fact that we've nurtured such a
successful international system.
Former Secretary of State Madeleine Albright calls America
the "indispensable nation"; that's because few global problems could be solved
without American involvement. Our allies in Europe, the Middle East, and Asia
clamor for active U.S. engagement in their regions. Although American power is occasionally
resented, there is broadly a strong attraction to our values of democracy, free
markets, and respect for human rights. A principal dynamic in the world today
is not a rejection of American leadership but rather a demand for more of it. It
is impossible to imagine any other country assuming the global leadership role
we currently play.
For all the tangible and intangible virtues of American
primacy, we must also be clear-eyed about the liabilities side of our strategic
balance sheet. Here are five big concerns.
Getting control of the U.S. long-term budget deficit
is critical. America's
fiscal position risks undermining its overall economic foundation. Despite the
general impression to the contrary, the fact is that in the last several years our
deficit has dropped precipitously -- in fact, faster than in any period since
the demobilization after World War II. But in just two years, deficits will
begin rising again, driven mainly by mandatory entitlement spending. As a
result, we will have less flexibility to make useful investments in the future
of our country, from science and technology to the national defense.
taking on our deficits, economic growth should continue to be our priority in
both the short term and the long term. Former Treasury Secretary Larry Summers has estimated that an
increase of just one-fifth of 1 percent in annual economic growth would address
the projected long-term budget gap.
Second, our infrastructure is falling into disrepair. Just five
years ago, the World Economic Forum ranked our infrastructure ninth best in the world
-- today it's 19th, and U.S. public construction spending as a percentage of GDP has plummeted
to its lowest point in 20 years. Our overburdened roads and bridges create a
situation that is environmentally, politically, and economically unsustainable.
United States has a long history of investing in infrastructure to support
economic expansion and growth. The current combination of absolute need,
persistent post-crisis unemployment, and favorable borrowing rates for the
government make this a uniquely favorable time for a major infrastructure
effort. Indeed, it is hard to imagine a better time.
Third, we can no longer take our
advantages in innovation for granted. China and Japan have already surpassed us
in the number of patents filed each year, and China is quickly catching up in
terms of R&D spending. That's why it's such an important
national priority that our government continue to invest in advancing
At the same time, our failure
to overhaul our immigration system is
blunting our natural edge in the global competition for talent. Forty percent
of the people receiving advanced degrees in science, technology, engineering,
and mathematics at American universities are foreign nationals with no legal
way to stay here, even if they would choose to do so. American business leaders
regularly express frustration that our current immigration laws make it hard
for them to hire talented individuals from abroad, limiting their ability to
grow their companies. And our competitors are already changing their policies
in order to attract the best and the brightest from around the world. That is a
cause for national concern. Passing common-sense reform would allow us to meet
the needs of the 21st-century American economy.
Similarly, we need a wake-up call
when it comes to primary and secondary education. Our universities are the best
in the world, but we rank 14th on Pearson's well-regarded education index for grade school. This is
simply unacceptable. If we are going to prepare Americans for the jobs of the
future and restore middle-class security, we have to out-educate the world.
That starts with a strong school system that stretches from pre-K through
Overcoming these liabilities will take time and difficult
choices. But here's the key point: None of these challenges is insurmountable.
Every one of them has a policy solution in sight that is feasible and
affordable for our nation. Addressing them in each case is a matter of mustering
the political will, as we've done for the last 200 years.
With the worst of the economic crisis behind us, and as we
move off of a permanent war footing, now is the time for smart choices and wise
investments that will sustain American power and leadership for generations to
come. We must continue to build on our assets and squarely take on our
liabilities. That means taking all the necessary steps to enhance economic
growth, including passing comprehensive immigration reform, ramping up our
investment in science and technology, repairing our infrastructure, and undertaking
more thoroughgoing political reforms to restore the health of our democracy.
This is a common-sense agenda that should have bipartisan support.
As we continue to renew our nation, our fundamental
strengths will propel us forward. Our open society and democratic institutions set
us apart. Our military remains the strongest in the world, and we will continue
to lead on the international stage. Our institutions will allow us to pursue the
kind of just and sustainable growth that our changing society needs. We are
younger than our competitors, and our economy will continue to be more vibrant.
I was recently reminded of a conversation I had with Henry
Kissinger during my time in the White House. I asked him what he made of all
this renewed talk of American decline. And I'll never forget his reply. He said
"Well, Tom, would you rather be national security advisor for any other
country?" The answer was self-evident -- of course not.
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