To recover its place in the world, the United States should first recover its confidence. It remains the world’s only superpower, the only big country with a total portfolio of military, economic and political dominance. Most major states are either well disposed toward it or, at worst, neutral. The challenges America confronts come from small, faceless terrorist organizations and a few rogue nations. This is not to minimize the challenges. Today’s asymmetries of power mean that small groups can do big damage. But it is to put things in perspective. When President Bush speaks of Iran’s nuclear program as the road to World War III, one wonders if he has noticed that Iran’s total GDP is just one sixty-eighth that of the United States, or that its military spending is less than 1 percent of the Pentagon’s.
The real challenges that the United States faces come not from globalization’s losers but from its winners, not from yesterday’s bombs but from tomorrow’s factories. The crucial project for the next president will be to change the basic focus of U.S. foreign policy, away from the Middle East and toward the Far East. When the history of these times is written, surely the great trend that will dominate the accounts, far larger than the war in Lebanon or the tensions over Iran, will be the rise of China and India and how they reshaped the world.
Featuring John Allison, President and CEO, Cato Institute; Rep. Kevin Brady (TX-8), Chairman, Joint Economic Committee; and Norbert Michel, Research Fellow in Financial Regulations, Heritage Foundation; moderated by James A. Dorn, Vice President for Monetary Studies and Senior Fellow, Cato Institute.
- Legal Briefs
- Cato Handbook for Policymakers
- Cato Journal
- Cato's Letter
- Cato's Letters
- Cato Papers on Public Policy
- Cato Policy Report
- Cato State Legislative Guide
- Cracking the Books
- Economic Freedom of the States of India
- Economic Freedom of the World
- Public Comments
- Supreme Court Review
In this issue of the Cato Journal, economists Geoffrey Black, D. Allen Dalton, Samia Islam, and Aaron Batteen offer one prominent example of allowing the market to work. Also in this issue, economists Jason E. Taylor and Jerry L. Taylor reexamine the relationship between marginal tax rates and U.S. growth, and Robert Krol looks at bias in CBO and OMB economic forecasts.
Latest CommentaryOnly a robust and open marketplace of ideas can effectively combat lies consistent with the First Amendment.
The 2008-2009 financial crisis and Great Recession have vastly increased the power and scope of the Federal Reserve, and radically changed the financial landscape. This new ebook examines those changes and considers how the links between money, markets, and government may evolve in the future.