The World Consequences of US Decline

For the past decade, analysts around the globe have suggested that the United States – its economy, innovations, political will and global influence – are in decline, and many US citizens agree, especially since the nation’s AAA credit rating was reduced by Standard & Poor’s. US citizens aren’t handling the decline well, and lash out at their political system and government officials. Other nations ponder the consequences of the US decline for them, explains Immanuel Wallerstein, noted sociologist and author of World Systems theory. “The problem for everyone is that it is very difficult to insulate oneself from the effects of U.S. decline,” Wallerstein writes. He observes the world has “moved into an era of acute, constant, and rapid fluctuations – in exchange rates of currency, in rates of employment, in geopolitical alliances, in ideological definitions of the situation.” Rapid changes paralyze the world economy, contributing to fear, protectionist stances and downward spiraling economic cycle. It’s not too late, Wallerstein concludes. Recognition of these trends in the US and beyond could yet reduce the political insecurity and economic instability. – YaleGlobal