Advertisement

Main Weaknesses in the American Economic Power

  • Vittorio Valli
Chapter

Abstract

Since the end of the 1940s, gradual, creeping, and important weaknesses have affected the great economic mechanism of the US. There was a rapidly growing energy dependence from abroad, partially compensated in recent years by the rising production of shale gas and shale oil in the US; a progressive increase in pollution; prolonged phases of relative economic decline and of a very large process of deindustrialization; the shift, since the end of the 1960s, from a structural surplus to a structural deficit in the balance of current account; the transition, from 1987 up to now, to the status of great net debtor in the international financial position; phases of weakening of the US dollar; the deep scars associated to political terrorism and criminal organizations; the rapid growth, since the 1980s, of wages, income, and wealth inequalities; and, finally, the withering of the American dream and a continuing erosion of democracy.

Keywords

Structural weaknesses in the US economy Foreign dependence on oil and raw materials Environmental problems Phases of relative economic decline Deficit in the balance of current accounts and external debt Terrorism and drugs Rise in economic and social inequalities Erosion of democracy 

References

  1. Atkinson, A. 2015. What Can Be Done About Inequality? Harvard: Harvard University Press.CrossRefGoogle Scholar
  2. BEA. 2018. U.S. Bureau of Economic Analysis. https://www.bea.gov/.
  3. Bebchuk, L.A., and J.M. Fried. 2004. Pay without Performance: The Unfulfilled Promise of Executive Compensation. Cambridge, MA: Harvard University Press.Google Scholar
  4. Bertola, G., and A. Ichino. 1995. Wage Inequality and Unemployment: United States versus Europe. NBER Macroeconomics Annual 10: 13–66.CrossRefGoogle Scholar
  5. CDC. 2016. Rudd, R.A., P. Seth, F. David, and L. Scholl. Increases in Drug and Opioid-Involved Overdose Deaths.  https://doi.org/10.15585/mmwr.mm655051e1.CrossRefGoogle Scholar
  6. Davis, J., and B. Mazumder. 2017. The Decline in Intergenerational Mobility after 1980, No WP-2017-5. Working Paper Series from Federal Reserve Bank of Chicago.Google Scholar
  7. EIA. 2018. www.eia.gov.
  8. Goldin, C., and R.A. Margo. 1992. The Great Compression: The Wage Structure in the United States at Mid-Century. The Quarterly Journal of Economics 107 (1): 1–14.CrossRefGoogle Scholar
  9. ———. 2018. https://www.iea.org/.
  10. Krugman, P. 2007. The Conscience of a Liberal. New York: W. W. Norton.Google Scholar
  11. Maddison, A. 2007. Contours of the World Economy, 1-2030 AD; Essays in Macroeconomic History. Oxford: Oxford University Press.Google Scholar
  12. Netherlands Environmental Assessment Agency The Hague. 2016. Trends in Global CO2 Emissions: 2016 Report. http://edgar.jrc.ec.europa.eu/news_docs/jrc-2016-trends-in-global-co2-emissions-2016-report-103425.pdf.
  13. Obama, B. 2006. The Audacity of Hope. New York: Crown Publisher (First edition Vintage Books edition 2008, New York, from which are taken ours citations).Google Scholar
  14. OECD. 2018a. Current Account Balance (Indicator). Accessed May 30, 2018.  https://doi.org/10.1787/b2f74f3a-en.
  15. ———. 2018b. Exchange Rates (Indicator). Accessed May 30, 2018.  https://doi.org/10.1787/037ed317-en.
  16. Pikkety, E. Saez and Zucman G. 2018. Distributional National Accounts: Methods and Estimates for the United States. Quarterly Journal of Economics 133 (2): 553–609.Google Scholar
  17. Stiglitz, J. 2012. The Price of Inequality: How Today’s Divided Society Endangers Our Future. New York: W. W. Norton & Company.Google Scholar
  18. USGS. 2017. Mineral Commodities Summaries, p. 6. http://minerals.usgs.gov/minerals.
  19. World Inequality Lab. 2018. World Inequality Report 2018. http://wir2018.wid.world/files/download/wir2018-full-report-english.pdf.

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Vittorio Valli
    • 1
  1. 1.Department of Economics and Statistics “Cognetti De Martiis”University of TorinoTorinoItaly

Personalised recommendations