American Economic Preeminence

The United States is in the midst of a many-sided economic crisis caused by an unrealistic assessment of domestic and international situations and an unwillingness to live within its means. The central fact is that the United States has been weakened and other countries strengthened as a result of changes in the international economy. This volume is meant to shake the policy-making community that continues to shield itself with free trade rhetoric while highly nationalistic, protected economies around the globe break off larger and larger shares of the U.S. market. The authors point out that the record of the United States' economic deterioration over the past quarter century can be seen in its steadily declining share of world GNP, from 35 percent in 1960 to 22 percent in 1980 to about 18 percent in 1987. Failure to contain and lower the twin trade and budget deficits, and to put the country on a substantially higher growth path, will reduce the United States to the status of a second-class power by the end of the century-a nation unable to meet its people's needs or to defend them in a violent world full of threats. Harrigan and Hawkins say that if America fails to act in an intelligent and decisive fashion, it could become another Argentina, with a ruined currency, staggering debts, geriatric industries, outdated technology and widespread public despair.