January 28, 2013
ONE ECONOMY TO RULE THEM ALL:
Is America in decline? (Robert J. Samuelson, January 27, 2013, Washington Post)
Posted by Orrin Judd at January 28, 2013 5:16 AMFor starters, the U.S. economy is still the world's largest by a long shot. Gross domestic product (GDP) is almost $16 trillion, "nearly double the second largest (China), 2.5 times the third largest (Japan)." Per capita GDP is about $50,000; although 10 other countries have higher figures, most of the countries are small -- say, Luxembourg. The size of the U.S. market makes it an attractive investment location.Next, natural resources. In a world ravenous for food and energy, the United States has plenty of both. Its arable land is five times China's and nearly twice Brazil's. The advances in "fracking" and horizontal drilling have opened vast natural gas and oil reserves that, until recently, seemed too expensive to develop. The International Energy Agency predicts that the United States will become the world's largest oil producer -- albeit temporarily -- by 2020.In turn, the oil and gas boom bolsters employment. A study by IHS , a consulting firm, estimates that it has already created 1.7 million direct and indirect jobs. By 2020, there should be 1.3 million more, reckons IHS. Secure and inexpensive natural gas also encourages an expansion of U.S. manufacturing, Goldman argues. That's another plus.Poorly skilled workers are often counted as a U.S. economic liability. Goldman's perspective is different. American workers will remain younger and more energetic than their rapidly aging rivals. By 2050, workers' median age in China and Japan will be about 50, a decade higher than in America. Moreover, the United States attracts motivated immigrants, including "highly educated talent." A Gallup survey of 151 countries found the United States was the top choice for those wanting to move, at 23 percent. At 7 percent, the United Kingdom was second.Finally, Goldman expects the United States to remain the leader in innovation. America performs the largest amount of research and development (31 percent of the global total in 2012) and has more of the best universities (29 out of the top 50, according to one British ranking).
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