The critics have it all wrong. It’s not all about AIG or Goldman Sachs. It’s not all about the financial system. It's not about GM or Chrysler. Go back to the writings of Michael Porter and consider what are America’s competitive advantages?
- The world’s premier reserve currency, Chinese objections notwithstanding; and
- The world’s foremost military, having a roughly 50% of total world military spending.
What is America’s problem? It’s deflation and the specter of unemployment.
Given American pre-eminence in military matters, she can leverage that advantage by invading a populous emerging market country and then forcing everyone at gunpoint to buy American cars. There is one problem, though. As demonstrated by the Iraqi adventure, the U.S. Army has become too high tech and didn’t have enough boots on the ground. The solution is to bring back the draft, which will have the additional benefit of soaking up pockets of U.S. unemployment.
During the 19th Century, Europeans relied on their colonies as captive markets for their industrial output. Why can’t America today?
America's leaders need to learn to think outside the box.