United States is the Smallest of the Three Economic Superpowers?
How Can that Be? It must really bother Trump to know this. And for the US, Trump’s posturing will make the United States Economy even smaller.
Is the Sleeping Giant Awakening? Paul Krugman
Travel day; in fact, filing from the airport lounge. And I can’t really say that I learned a lot — no conversations with the powerful, or for that matter wise taxi drivers.
Still, a quick note from Brussels: Everyone I talked to was horrified and terrified by what’s happening in America — but not cowed. If anything the mood was that Europe has to grow up and stand up.
I doubt many people in the U.S. realize what a geopolitical earthquake just happened in Germany. They didn’t pass legislation; they changed the constitution (or will have, assuming the upper house goes along) to lift the “debt brake” on a trillion euros of defense and infrastructure spending. Combine that with tough talk from France and strong indications that on security matters, at least, Britain will consider itself part of Europe, and suddenly it seems as if a continent that was always a superpower, but refused to act like one, may be waking up.
The truth is that there are three economic superpowers in the world — and by one measure, at least, purchasing power of GDP, the United States is the smallest of the three:
Source: World Bank
Yes, European productivity has lagged for the past couple of decades, and none of the world’s giant technology firms is European. Yet this is still a rich, highly capable society, with immense capacity to defend its values on the world stage.
Until now, however, Europe has lived in a state of learned helplessness, relying on America for its security. That’s now over. It’s not just the tariffs and Trump’s obvious support for Putin. I don’t know if Americans realize how big a shock it has been that European citizens are being arrested and detained by ICE. Suddenly it’s clear that America is not an ally, may not even be a democracy, and Europe must look after itself.
The question, which I can’t answer, is how quickly Europe can stand up. There’s clearly going to be a shift away from U.S. weapons, and Europe clearly has the technological capacity to do that. Will it be able to do so soon enough to turn the tide in Ukraine? I have no idea.
Nor can we rule out the possibility that Europe will return to form and disappoint everyone.
But big stuff is happening, and team Trump, which seems to believe that nobody can stand up to his whims, may get a rude shock from old Europe.
“team Trump, which seems to believe that nobody can stand up to his whims, may get a rude shock from old Europe.”
And from China.
Have to believe Canada will not side with Europe given its strong sense of sovereignty and democracy and historical ties to Britain. Of course in this country it all comes down to filthy lucre— see Paul Weiss.
Interesting article. China is key, and if it behaves in a sane and rational manner, may end up being a European ally. World is truly changing. We think Mr. Trump might be just a tad crazy, but so it goes. Canadians were gobsmacked to find ourselves in a Trade War with USA. The ICE stormtroopers and the border detentions are weirdly awful, and give evidence of a national weakness we never expected from our southern neighbour. The USA tariffs are a hilariously misguided attempt to generate revenue which will do massive damage to American business. They are just 25% tax increases on many critical American business costs. America will – for certain – have a recession by the Autumn. The only real question will be if it becomes a Depression.
Do American kids *really* want to go back to working factory jobs?? Factory jobs are crappy work… no brain-power needed. Mr. Trump is taking ya’all back to the old days of smoke-stack industry, and old-fashioned Isolationism. We feel sad about this. For Canadians, watching all this is kinda like watching your neighbour get into a fight with his family, and try to burn down his own house. One does not know whether to laugh, cry, or take a trip to Europe.
Either way, it’s nice to see France and Germany finally grow up, and realize they need to spend bigly on Defense technology – and not hide under USA’s skirts. Canada must do the same. We need to borrow some UK nukes, and place them around our borders. Or refine our yellowcake to 95%, and build a bunch of “tubular bells” of our own.
And of course, Canada will get economically and politically closer to Europe. And the UK. For Mr. Trump and his idiot minions, the decision to enter into a trade war with Canada, will probably prove to be their biggest regret, and their most asinine error.
Russell:
Our village idiot is in a war with every country . . . including Russia.
I think kids need to do some trashy jobs before they graduate High School. A quick lesson on what they could be if they do not get an education. Even a stint in the military can be an eye opener. I believe Germany is pretty capable with their military. France is kind of there also. They are acquiring F-35s also. France has a good air force also. Both countries have ~200 fighters each.
I did not vote for Trump. Too many US citizens did because of the price of eggs. Gov does not control such or food in general. Companies took advantage of the pandemic just the same as they did in 2008. Biden gave us a good economy when he left the White House. Americans do not like a woman as the president, The 2nd verse with Kamala Harris sounds the same as the first verse with Hillary Clinton. America does not want a woman President. Maybe a VP to clean up after the Pres. Kamala really handed Trump his ass during the debate. I was laughing at him.
You have a great country. This will pass soon I think. Trumps lifestyle will be the end of him. Maybe a gift card for a dozen more McDonalds cheese burgers to help him along? How are we going to remember this piece of white trash?