The Sky Isn’t Falling! The Sky Isn’t Falling!

Sometimes it helps to get an outsider’s opinion to get a more accurate picture of yourself. Of course, it helps to have an informed and well intentioned person doing the viewing. Too often when it comes to the US, the people doing the critiquing can’t get past their own biases and only see ‘torture’ and doom for this country.

Gerard Baker, the US Editor for the Times of London takes stock of America on this Thanksgiving weekend and says the reports of our demise are greatly exaggerated.

The pundits have finally run out of bad news to report from Iraq, where, unmolested by the morbid fascination of misery-seeking reporters, the locals actually seem to be belatedly enjoying the first fruits of their liberation. So attention has turned again, as it has tended to do from time to time these past 50 years, to the inevitable collapse of the American economy.

…For the historically short-sighted, let's remember we have been here before. Between 1985 and 1995, the dollar declined by 43 per cent against the world's big currencies — somewhat more than it has in the past six years. That period was also marked by dire proclamations of the end of US economic power. But it turned out that in those years the foundations were laid for the strongest period of US economic growth in the past 35 years.

…If you're still sceptical, ask yourself this: is it probable that the shift in the relative value of the dollar and the euro represents a bet by the world's investors that Europe — strike-torn, productivity-challenged, demographically doomed Europe — is the world's economic future, rather than the US, or, let's say, China?

From here Baker takes on the charges that public and private debt are going to sink us (they’re not) and that Americans don’t save much compared to the rest of the world (we don’t but why would we when that money can generate so much wealth in other ways?).

It’s nice to see someone who is both a foreigner and journalist so bullish on the US. Outside of Mark Steyn, those two cohorts aren’t exactly known for their balance, yet alone, pro-American sympathies.

A smart Republican candidate for President or two may want to take a look at this column and start incorporating some of Baker’s points and tone into their talking points.

posted by DrewM. at 02:41 PM

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