Ominous chronicle of a decline foretold
December 01, 2012
BARACK Obama, having won re-election last month, declared "we still have work to do". Too right he does. Unfortunately, it seems unlikely that the US President's team will be able to make the policy adjustments required.
Disturbingly, the alternative touted by the Republicans appears just as unlikely to have worked. The structural problems into which the US has got itself require changes that, at present, are nowhere in sight on the American political horizon.
That, at least, is the verdict of several astute observers. In The Betrayal of American Prosperity (2010), veteran trade negotiator and economic analyst Clyde Prestowitz argues trenchantly that the US grew rich between 1790 and 1945 as a mercantilist state and has been running itself into the ground since 1945 by embracing free trade in the face of persistent mercantilism among its key competitors, especially in East Asia. His book, published here by Simon & Schuster, repays a close reading.
Click here to read the entire article at The Australian