In some respects, the United States fared better than
other capitalist states as the economic revival that took
place in the 1990s enabled the Clinton administration to
reduce budget deficits without having to engage in substantial
tax increases or a massive reduction in welfare
spending. Even there, however, continued increases in
social spending provoked the passage of new legislation
to reduce welfare and health care benefits. Nor has the
steady growth in the gross domestic product led to increased
prosperity for all Americans. Although the rich
have been getting richer, the poorest 20 percent of the
population has so far seen little benefit. The lack of sustained
growth in consumer demand may be a major reason
for the economic slowdown that began to appear
early in the new century and has brought unemployment
levels to the highest rate in recent years.
The United States has not yet witnessed the emergence
of significant antiforeign sentiment on the scale of
some countries in Europe, perhaps partly because of the
salutary effect of a steadily growing economy. Recent history
suggests that tolerance toward immigrants tends to
decrease during periods of economic malaise, and vice
versa. But there are indications that anger against the
growing presence of foreign-born residents—especially
those who have arrived illegally—is growing. Legislation
to limit social benefits to noncitizens and to expel illegal
aliens has been proposed at the state level and has been
debated in Congress. Many American workers, with the
support of labor unions, have vocally opposed the enactment
of trade agreements such as the North American
Free Trade Association (NAFTA) that would allegedly
lead to a flight of jobs overseas as U.S. corporations seek
to reduce production costs by hiring cheaper labor. Opponents
of globalization have become increasingly vocal,
leading to violent protest demonstrations at meetings of
the World Trade Organization, the World Bank, and the
International Monetary Fund.
Yet as in the case of European unity, there is solid economic
logic in pursuing the goal of increasing globalization
of trade. The U.S. industrial machine is increasingly
dependent on the importation of raw materials from
abroad, and corporate profits are to a rising degree a consequence
of sales of U.S. goods in overseas markets. Although
foreign competition can sometimes lead to a loss
of jobs—or entire industries—in the United States, the
overall effect is likely to be a growing market for U.S.
goods in the international marketplace. Moreover, as the
case of the automobile industry has demonstrated, increased
competition is crucial for maintaining and enhancing
the quality of American products. President
George W. Bush, who came into office in January 2001,
has voiced his support for the creation of a global free
trade zone incorporating all the nations of the Western
Hemisphere.
It is hardly surprising that the main proponent of the
global economic marketplace is the United States, a
country well placed to take full advantage of the technological
revolution and turn it to its own advantage. Its
large market relatively unfettered by onerous government
regulations, generous amounts of capital, a tradition of
political stability, and an outstanding system of higher education
all combine to give the United States an edge
over most of its rivals in the relentless drive to achieve a
dominant position in the world economy. As Washington
applies pressure on other governments to open up their
economies to the competition of the international marketplace
and to adopt concepts of human rights that accord
with those in the United States, resentment of the
U.S. behemoth and fears of U.S. global domination are
once again on the rise, as they were during the immediate
postwar era.
World History
