Fifty Years of Economic Folly—-and the Stark Choices Ahead
April 18, 2011
Moyo (Dead Aid: Destroying the Global Myth of Our Time) questions whether America has the political will to implement the draconian policies necessary to maintain its position as the world's leading economic superpower. Moyo theorizes a globe bifurcated between the West (aging economies possibly destined to sink like the former British Empire) and the Rest, led by China. While the rest have youthful, well-educated populations, cheap labor, and double-digit GDP, their ascension is far from guaranteed. To surpass the U.S. economy by 2027, China would have to grow at 10% a year. Alternatively, to preserve its advantage, the U.S. would need to grow more isolationist in its trading, default on government debt, and begin anew, suggesting that the country could begin obtaining credit again only six months after such an unthinkable default. What's unclear is whether Moyo believes if this race can be won at all. Wouldn't it be more responsible for the U.S. and China to lead the world in reducing pollution and consumption rather than greedily trying to surpass each other? Ultimately, although Moyo doesn't seem to consider the prospect of something unexpected on the horizon, her effort is bracing.
