US Economic Stability at Risk: The Urgent Need for "Make in America"

June 14th, 2024 Latest Blogs

Concerns over the stability of the United States are on the rise. The recent conviction of Donald Trump has fueled allegations that judges are supporting the ruling Democrat government, pointing to a potential democratic decline. Amidst this political turmoil, the need for a robust "Make in America" initiative has never been more critical to revive the US's status as a superpower.

During the 2008 recession, the American government responded by printing currency at will, leveraging the global dominance of the US dollar in oil trade. This strategy allowed for loans at mere interest rates of 2-3% to burgeoning tech giants like Google and Facebook. However, the landscape is shifting. Analysts note that the use of the Chinese yuan in global trade has increased by 7%, while the use of the US dollar has seen a corresponding decrease.

Gulf nations are gradually moving away from the US dollar, a trend that is beginning to impact the US economy. There is an urgent need for the US to explore and exploit domestic oil resources, a solution advocated by Donald Trump, to stave off economic decline. The major reason for the US's waning dominance is the weaponization of the US dollar to sanction countries globally. This arrogant approach, if unchecked, threatens to undermine the US's economic stability.

The US's current debt exceeds 100% of its GDP, creating a precarious economic situation. The International Monetary Fund (IMF) has already issued warnings about the rising debt. Unofficially, de-dollarization is gaining momentum, with the US's hegemony increasingly challenged by smaller nations around the world. The withdrawal of American troops from Afghanistan, seen as a retreat from the Taliban, further underscores the perceived weakening of the world's most technologically advanced military.

What goes around comes around. If the US does not cease its habit of imposing sanctions, it could face reciprocal trade restrictions from multiple countries, as seen with Russia and China to some extent. To avoid a major economic crisis, the US must focus on manufacturing and producing goods domestically while addressing its soaring debt. Embracing a "Make in America" ethos is crucial for reclaiming its economic and political standing on the global stage.

Abhishek M Typically replies within an hour
×
Abhishek M