Blowback: The Costs and Consequences of American Empire
Johnson was an early revisionist who called attention to the special state-guided character of Japanese capitalism. He now brings this revisionism to a much wider canvas. In this book, he charges America with running a global capitalist empire -- comparable to the Soviet Union in its foolish assumptions and overstretched reach and deserving a similar fate. Although he offers opinions about American policy everywhere, Johnson's particular focus is on Asia. He views allies like Japan as American stooges and equates Japanese prime ministers with the former leaders of East Germany. He finds American hubris responsible for practically everything he dislikes. For instance, Johnson asserts that the CIA installed former Indonesian leader Suharto in Indonesia in 1965-66 and that the U.S. Defense Intelligence Agency removed him in 1998. (Neither claim is true.) Nor does he give America credit for anything that has gone right, like progress toward democracy in states such as South Korea, Taiwan, or the Philippines. In contrast to a work like Gleysteen's, Blowback reads like a comic book. Even otherwise sympathetic academics will wince at how Johnson turns so many Asian leaders into caricatured marionettes.
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Only a few years ago pundits were sure that the United States was losing to Asia and Europe and had to emulate their more state- directed economies to remain competitive. Now the conventional wisdom is that America is number one and that the rest of the world should adopt its more laissez-faire approach. In fact, neither caricature is right. Asia was booming and now it is slumping, but it will be back. Europe's underlying ossification will persist. But most important, while the U.S. economy is in a period of robust growth, nothing fundamental has changed. Its long-run growth rate has not accelerated, productivity has not risen, and the structural unemployment rate has fallen by one percentage point at most. Come the next recession, all this triumphalism will seem silly.
America's economy is in its eighth year of sustained growth, transcending the German and Japanese "miracles." This is no fluke. America's unique brand of entrepreneurial capitalism is based on a series of advantages that explain the stunning success of the 1990s and provide the basis for extending this winning streak. These strengths include deft managers, technological innovation, and a culture that values rugged individualism -- all fueled by finance capital that can nimbly meet the needs of a globalized, rapidly changing economy. Furthermore, the era of the deficit is over. Pessimists who warn of inflation should be ignored; American business leaders understand that today's low level of inflation is self-perpetuating. America's prosperity is structural, not transient, and its lead over Europe and Asia will only widen with time. America had the twentieth century. It will also have the twenty-first.
With China's economic clout growing rapidly, Americans are accusing Beijing of every offense from currency manipulation to crooked trade policies. None of these charges has much merit, but they have increased the probability of a U.S.-Chinese trade war that would do considerable damage to both sides.
