The strong US economy

From the New York Times

...it's worth pointing out now more than ever that Dobbsianism is fundamentally wrong. It plays on legitimate anxieties, but it rests at heart on a more existential fear -- the fear that America is under assault and is fundamentally fragile. It rests on fears that the America we once knew is bleeding away.

And that's just not true. In the first place, despite the ups and downs of the business cycle, the United States still possesses the most potent economy on earth. Recently the World Economic Forum and the International Institute for Management Development produced global competitiveness indexes, and once again they both ranked the United States first in the world.

In the World Economic Forum survey, the U.S. comes in just ahead of Switzerland, Denmark, Sweden and Germany (China is 34th). The U.S. gets poor marks for macroeconomic stability (the long-term federal debt), for its tax structure and for the low savings rate. But it leads the world in a range of categories: higher education and training, labor market flexibility, the ability to attract global talent, the availability of venture capital, the quality of corporate management and the capacity to innovate.

William W. Lewis of McKinsey surveyed global competitive in dozens of business sectors a few years ago, and concluded, "The United States is the productivity leader in virtually every industry."

Second, America's fundamental economic strength is rooted in the most stable of assets -- its values. The U.S. is still an astonishing assimilation machine. It has successfully absorbed more than 20 million legal immigrants over the past quarter-century, an extraordinary influx of human capital. Americans are remarkably fertile. Birthrates are relatively high, meaning that in 2050, the average American will be under 40, while the average European, Chinese and Japanese will be more than a decade older.

The American economy benefits from low levels of corruption. American culture still transmits some ineffable spirit of adventure. American students can't compete with, say, Singaporean students on standardized tests, but they are innovative and creative throughout their lives. The U.S. standard of living first surpassed the rest of the world's in about 1740, and despite dozens of cycles of declinist foreboding, the country has resolutely refused to decay.