I was browsing through macro economic material through the web and I came across this interesting video where the author argues that the future of USA ‘s economy is as gloomy as that of Argentina’s economy in our current days, please watch the video and then read my comment below.
Here is what I think and here is why I disagree with the video:
USA is different than Argentina at least in the few coming decades. First of all , US has much higher average income (a good way to reflect on personal income is by comparing the GDP per capita of both countries) and much larger economic size than Argentina (GDP Purchasing Power Parity). The US is the third largest exporter of goods and services in the world after Germany and China. Meanwhile the USA has More than 20,000 BILLION $ Invested world wide in stocks and financial derivatives in the world. Let us not forget, US $ is still most used currency in the world trade and the reserve currency in the world and so on.
United States has the highest research and development related spending in the world; International talents are continuously seeking migration to USA and do finally find their way to reputable universities and big companies where most of the Research and Development usually takes place. The author of the video has a point that in years things will change because there are new emerging powers like China ,Turkey, India , South Korea and Brasil. Maybe in the coming 50 years , these rising economies will become super powers to surpass USA, the same way USA became a superpower stronger than France and Britain. Even then, USA will still have high economic relevance and competitiveness, the same way France and Britain are still of great importance to world economy.