{"id":10714,"date":"2020-12-29T10:51:30","date_gmt":"2020-12-29T16:51:30","guid":{"rendered":"http:\/\/blog.uwsp.edu\/cps\/?p=10714"},"modified":"2021-01-05T10:43:24","modified_gmt":"2021-01-05T16:43:24","slug":"divisiveness-and-the-economic-challenges-of-2021-challenge-5-u-s-economic-leadership","status":"publish","type":"post","link":"https:\/\/blog.uwsp.edu\/cps\/2020\/12\/29\/divisiveness-and-the-economic-challenges-of-2021-challenge-5-u-s-economic-leadership\/","title":{"rendered":"Divisiveness and the Economic Challenges of 2021 \u2013 Challenge #5: U.S. Economic Leadership"},"content":{"rendered":"\n

Now let’s look at Challenge #5 of the Divisiveness and the Economic Challenges of 2021<\/strong> – U.S. Economic Leadership.<\/strong><\/p>\n\n\n\n

Does it matter how the U.S. is\nperceived by other countries if it wants to be an economic leader? Well, it\ndoes. If the United States wants to be the global economic leader and be a key\npolitical leader (the two are interrelated), it is important for the U.S. to be\nviewed favorably by other countries. International divisiveness and isolationism\ndon\u2019t work too well \u2013 not only does it increase political and military risk, it\nalso reduces economic opportunities for U.S. companies, reduces opportunities\nto seek joint solutions to global problems, and decreases returns for global as\ninvestors as economic growth is stymied. <\/p>\n\n\n\n

One of the challenges of 2021 will\nbe for the U.S. to develop its position in global economic and political\nleadership. Once again, eliminating international divisions, not differences,\ncould enhance the global economic and political leadership of the United\nStates.<\/p>\n\n\n\n

The Pew Research Center<\/em> conducted surveys in June through August 2020 across 14 advanced economies on opinions regarding China and the United States. The countries surveyed include: 1)  Australia, 2) Belgium, 3) Canada, 4)  Denmark, 5) France, 6) Germany, 7) Japan, 8) Italy, 9) the Netherlands, 10) South Korea, 11) Spain, 12 Sweden, 13) the United Kingdom and 14) the United States. In most of the 14 advanced economies unfavorable views of both the U.S. and China are at or near historic highs according to the Pew Research Center<\/em>, which has polled on the issue for the past decade. Although the U.S. was viewed more favorably than China in almost every country (it was a tie in Belgium), less than 50% of respondents had a favorable view of the United States in almost every country. Only the U.S. and South Korea had a majority of respondents having a favorable view of the United States. <\/p>\n\n\n\n

The view of America as the economic\nleader in the world has certainly waned. According to the Pew Research\nCenter<\/em>, China was viewed as the dominant economic power by respondents in\n11 out of the 14 countries surveyed. Only respondents in the U.S., Japan, and\nSouth Korea viewed the U.S. as the dominant economic power.<\/p>\n\n\n\n

The view that American economic leadership has declined may be reflected by the declining foreign sales of U.S. firms. According to a Goldman Sachs<\/em> report, foreign sales as a share of S&P 500 companies’ total revenues fell in 2019 to its lowest level in 10 years. Foreign sales accounted for 29% of the $12 trillion aggregate S&P 500 revenues in 2019, down from 30% in 2018. According to Goldman Sachs<\/em>, the Greater China area has been a key driver of foreign sales for S&P 500 companies. Over the past 10 years, 40% of the increase in Asia-Pacific sales was derived from Greater China. The rise in sales to the Asia-Pacific region offset the decline in sales to Europe.<\/p>\n\n\n\n

Closing the divisions that exist\nbetween the United States and other advanced economies may be crucial for the\nU.S. to be viewed as the global economic leader by other countries. A favorable\nview of the U.S. by foreign countries could help restore U.S. global economic\nleadership through increased financial opportunities for U.S. firms and\ninvestors.<\/p>\n\n\n\n

For\nfurther information:<\/p>\n\n\n\n

  1. From S&P Global Market Intelligence, a discussion on the Goldman Sachs report: S&P Global Market Intelligence – Goldman Sachs<\/a><\/li>
  2. From Pew Research: Pew Research – Foreign Views on America and China<\/a><\/li><\/ol>\n\n\n\n
    <\/figure>\n\n\n\n
    \"Divisiveness<\/figure><\/div>\n\n\n\n

    CBEI Series: Divisiveness and the Economic Challenges of 2021<\/strong>
    Challenge #1: COVID-19 and the 2021 Economy<\/a>
    Challenge #2: Controlling U.S. Debt and Federal Budget Deficits<\/a>
    Challenge #3: Manufacturing and Trade<\/a>
    Challenge #4: Healthcare<\/a>
    Challenge #5: U.S. Economic Leadership<\/a>
    Challenge #6: Wages<\/a><\/p>\n\n\n\n

    <\/figure>\n\n\n\n
    <\/figure>\n\n\n\n
    \"Kevin<\/figure>
    \n

    Kevin Bahr is a professor emeritus of finance and chief analyst of the Center for Business and Economic Insight<\/a> in the Sentry School of Business and Economics at the University of Wisconsin-Stevens Point. <\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

    Now let’s look at Challenge #5 of the Divisiveness and the Economic Challenges of 2021 – U.S. Economic Leadership. Does it matter how the U.S. is perceived by other countries if it wants to be an economic leader? Well, it does. If the United States wants to be the global economic leader and be a […]<\/p>\n","protected":false},"author":136,"featured_media":10634,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,527,12],"tags":[124,532,305,342,502,343,344],"_links":{"self":[{"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/posts\/10714"}],"collection":[{"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/users\/136"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/comments?post=10714"}],"version-history":[{"count":5,"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/posts\/10714\/revisions"}],"predecessor-version":[{"id":10733,"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/posts\/10714\/revisions\/10733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/media\/10634"}],"wp:attachment":[{"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/media?parent=10714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/categories?post=10714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.uwsp.edu\/cps\/wp-json\/wp\/v2\/tags?post=10714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}