How will America compete in the coming 100 years?
I was reading this article on-line, what are your views? If not Europe then China or India?
Chicago Tribune, 6 January 2002 (bit old but anyway)
EU in position to be world’s next superpower
by Andrew Reding
While U.S. media focus on Europe’s transition to the euro, Washington doesn’t seem to understand the full implication of a unified continent across the Atlantic.
The adoption of the euro by 12 European countries signals something far more important than anyone on this side of the Atlantic seems to realize.
Europe is gradually emerging as the world’s new superpower. Within a couple of decades, the European Union will equal—if not surpass—the United States as the dominant economic force on the world stage.
Consider the arithmetic. The U.S. dollar is used by about 285 million Americans. The euro is beginning to be used by 304 million Europeans with comparable levels of prosperity. When remaining EU members Great Britain, Sweden and Denmark join the euro zone, as now seems inevitable, that sum will rise to 378 million.
And that is just the beginning. Another 12 European countries are preparing to join the EU. Their accession in the next decade will bring the total to 483 million, in current figures.
Taking a longer view, Turkey, the Balkans and eventually Russia enter the picture. Turkey is already in a customs union with the EU, and German Chancellor Gerhard Schroder is advocating bringing Russia into the fold.
For his part, Russian President Vladimir Putin is likewise tilting toward Europe. Russia is already a member of the Council of Europe. It is only a matter of time before it joins the EU. Together with the remaining holdouts, that will bring the total to roughly 800 million people in current terms, almost equal to the population of India or China.
But the EU is qualitatively different from India and China. It is enormously more prosperous and technologically advanced. It encompasses four of the Big Seven economic powers: Germany, Great Britain, France and Italy.
Geopolitically, it includes a unified Germany in further union with its historic rivals, France and Great Britain. Add Russia to the mix and the implications are mind-boggling. Never before has Europe been united through peaceful means. The emergence of the continental superpower raises the prospect of a union more formidable than the United States, stretching from the Atlantic across Eurasia to the Bering Sea.
So why aren’t we hearing more about it? Because Washington still doesn’t believe Europeans will be able to overcome linguistic and cultural barriers.
Yet border checks have vanished, so that crossing from one country to another is about as eventful as crossing a state line in the United States.
The EU already has a functioning parliament, courts, capital city, flag, license plates, passports and now a common currency.
Despite all of this, Washington still isn’t taking the EU all that seriously. Where, after all, is the European president? The current European executive has 15 heads, a recipe for gridlock that can only get worse with the admission of more countries.
But even that is about to change. The EU is convening a constitutional convention under former French President Valery Giscard d’Estaing to consider a federal structure with an elected president to complement the existing directly elected parliament.
Cynics will say that even so, Europe will never match the vitality and the commitment to freedom and free enterprise that has made the United States the world’s greatest-ever economic and technological powerhouse.
But all that is changing too. Europe now has its own bill of rights, and a court in Strasbourg, France, to enforce it. Just as tariff barriers are vanishing all across the continent, so are the national monopolies that have until now stifled competition. With a single currency, reduced telecommunications and transport costs and a market larger than the United States, vast new opportunities are opening up for free enterprise.
Already, there is a new dynamism in Europe. Futuristic rail lines are spreading across the continent, whisking intercity passengers at 185 m.p.h.
Cellphones are more ubiquitous than in the United States. And even Americans are now flying in Airbuses instead of Boeings.
And, if you think about it, the adoption of a common parliament, bill of rights, and currency by 12 nations with as many different languages is an even more audacious feat than the union of 13 English-speaking colonies a little more than two centuries ago.
PNS associate editor Andrew Reding is a senior fellow of the World Policy Institute in New York.
So what should America do?
- PaschaLv 71 decade agoFavorite Answer
In order to compete effectively in the global economy, the U.S. has to rethink its economic and fiscal policies.
The U.S. is addicted to debt, both public and private. Our politicians think that our economy becomes stronger the more individuals spend on new cars, electronics and entertainment. Our infrastructure is falling apart and there is no political will to reconstruct it.
At the same time, what we have to export will not pay for our big appetite for consumption. Not much capital equipment is manufactured here anymore and we have become a "service economy." Other countries are surpassing us in technological innovation. Our kids don't like to study science and math, they are too busy with their sports schedules and dreams of signing multimillion dollar contracts with football or baseball team.
What should America do? First of all, the government should not bail out failing companies. Those companies should fail and Americans should realize we need to do things differently for our long term survival.
- TMWLv 51 decade ago
You make some good points.
I think we have to factor Asia into the equation too. Asia's manufacturing is increasing at a fast pace. Europe in general has lowered their corporate tax rates, while the US has the second highest in the world. The US is making many anti-business policies as well as poor economic policies. Because of this the US will almost certainly loose the international currency position. Once lost it will be almost impossible to regain it.
The US needs to get serious about keeping business here and trying to attract international business'. Ways to do this would probably include lowering the corporate tax rate from 36% to under 20%. Change the tax laws so companies aren't penalized for international economic activity and find ways to reduce expensive unneeded litigation.
- 1 decade ago
The article is crap. The EU already has a higher GDP than the US. Problem is the EU is not very cohesive. It is going to take time for all the countries in the EU to agree on everything.
- empLv 61 decade ago
What should America do?
Demand that since the EU is a confederation of states, it gets one vote collectively in the UN. The alternative is that the USA gets 50 votes instead of one.
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- correrafanLv 71 decade ago
America is going downhill and won't last another 100 years, and our failure to move forward with new ideas will have been the cause.Source(s): Seeing in coming...
- Anonymous1 decade ago
If we don't get rid of the communist usurper, I see us living behind an iron curtain so we can hide from the rest of the world how pathetic and weak we allowed the dems and libs to make us.
- dipsydoodleLv 51 decade ago
only a fool believes all the European nations can prove compatible on all issues.
- 7 years ago
Free Tibet, maybe...?
- zereddogLv 41 decade ago
....get on limbugh's pills...you see for me who s coming from those places you r making sence....but not for ignorant americans