https://pjmedia.com/columns/rainerzitelmann/2023/04/24/how-strong-is-the-power-of-american-capitalism-n1690018
David Brooks wrote an article on “The Power of American Capitalism” in the New York Times on April 20, 2023. As someone who wrote a book called The Power of Capitalism a few years ago, I welcome the sentiment: capitalism is stronger than ever, despite all the doomsayers. Brooks cites a report published by The Economist on American economic performance over the last three decades. Using an avalanche of evidence and data, the main thrust of the article is that far from declining, American capitalism is dominant and accelerating. Brooks cites a host of facts, including:
Back in 1990, for example, America’s gross domestic product per capita was nearly neck and neck with that of Europe and Japan. But by 2022, the U.S. had raced ahead.
In 1990, the U.S. economy accounted for 40 percent of the nominal G.D.P. of the G7 nations. By 2022, the U.S. accounted for 58 percent.
In 1990, American income per person was 24 percent higher than the income per person in Western Europe. Today, it is about 30 percent higher…
In 1990, the U.S. economy accounted for about 25 percent of global G.D.P. In 2022 it still accounted for roughly 25 percent, The Economist found.
This is good news indeed. But what should be added is that much of America’s economic growth has only been possible because of the spread of capitalism around the world in the decades from 1990 to 2020. Developments in China, in particular, where unprecedented growth has been achieved since Deng Xiaoping’s reforms began in the early 1980s, have also boosted growth in the United States. Contrary to the widespread perception in the U.S. that unequal trade with China is to blame for many of America’s woes, capitalist globalization has also significantly benefited American companies operating around the world. When countries like China, Vietnam, and India grow, it does not hurt the U.S. America benefits too.