The 21st Century World Economy Has Arrived

The United States was not interested in the rest of the world until WWII.  Our nation kept up its protectionist and no alliance philosophy until that war thrust us (were we dragged?) into a position of leadership.  Exceptions to that basic idea did occasionally occur.  There was the famous bombardment of pirates off the north coast of Africa in the early 1800s.  That was an independent action that led to know alliances.  WWI is the outstanding example of working together with other countries to defeat a common enemy.  At the end of that war the United States did not join the League of Nations.  Instead the country reverted to its no alliances philosophy.

The idea of no alliances apparently dates back to Thomas Jefferson. He extended Washington’s ideas in his March 4, 1801 inaugural address: “peace, commerce, and honest friendship with all nations, entangling alliances with none.” 

A Cato Institute article on free trade confirms the philosophy of high tariffs. The article provides a U.S. Department of Commerce graph that shows 30% import duties on durable goods until WWII.  Pat Buchanan, the conservative talk show host and former presidential candidate, still contends that the United States would be better off economically if trade barriers were in place.  He repeated that position on the McLaughlin Group on Friday August 21, 2009.  When was the last time he went shopping?  Walmart, Target, Sears, Best Buy, etc. are all part of the global market place.

It’s understandable why Buchanan and others believe that protectionism is the salvation for the United States.  We can’t compete with other nations for many goods and services.  Our cost of living is just too high.

Listed on President Barack Obama’s top five books to read this summer is Thomas Friedman’s The World is Flat.  It’s a book that tells us something we already know but in horrifying detail.  This book tells us about the interdependence of every nation in the world.  The quote “President Obama will probably learn of the operation from CNN” evidences how well we have connected everyone.  Even Mayanmar’s (Burma’s) secretive government has been unable to keep events in that country a secret from the world.  Neither 10th century Muslims nor Asian dictators can stop the interconnected world.  Visit Toronto, Canada and it’s like visiting the United Nations.  You will realize the world cannot be turned back.

The answer to our dilemma is innovation and invention.  This nation gave birth to assembly line manufacturing (Henry Ford’s factories), the telephone, the computer world, and the internet.  It was Thomas Edison who invented the light bulb and the first recording devices.  The largest and most successful aircraft manufacturing companies were built in the United States.  It’s that creativity that will revitalize this nation.

What will it be?  I don’t know.  It could be new car batteries or new ways to generate electricity or something else.


The new world has arrived.  Get excited!

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