Being America: Liberty, Commerce, and Violence in an American World
With Being America, a mix of reporting and reflection on America's role in a world shaken by globalization, the intellectual wunderkind Purdy has established himself as a major presence on the American scene. Purdy always seems comfortable, whether visiting sweatshops and labor organizers in Cambodia, chatting with al Qaeda sympathizers in the bazaars of Cairo, or discussing the emotional roots of his generation's approach to branded consumer goods. That said, Being America sometimes misfires. Globalization books inevitably have their thin and gassy stretches; this one is no exception. Purdy sometimes slips from brilliance into mere precocity. His rhetorical stance -- progressive centrism -- is not always compelling: straw men to the left of me, straw men to the right of me, onward I pundit. But these weaknesses are like sunspots on the sun. Purdy's extraordinary range of observation supports a judicious political intelligence and a powerful analytical mind. His core insight -- that Edmund Burke's fundamentally moral concept of liberal society provides an essential critique of both the antiglobalist left and the globalization cheerleaders -- is original and sound. Being America successfully captures our ambivalence about the American model in a sensitive, nuanced, and balanced way.
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The United States is obsessed with its ever-growing trade deficit. Yet trade is no longer a valid measure of global competitiveness. Today U.S. firms compete in the world marketplace through foreign-affiliate sales instead of exports -- and they do so with unparalleled success. Overblown fears about the burgeoning trade deficit, along with a slowing U.S. economy, could spark protectionist policies in Washington, which could then trigger retaliations around the globe. This outcome -- not the size of the trade deficit -- is the greatest danger.
The principal problem with which the world's economies must deal during the coming decade is the unsustainable imbalance of international trade. The United States cannot continue to have annual trade deficits of more than $100 billion, financed by an ever-increasing inflow of foreign capital. The U.S. trade deficit will therefore soon have to shrink and, as it does, the other countries of the world will experience a corresponding reduction in their trade surpluses. Indeed, within the next decade the United States will undoubtedly exchange its trade deficit for a trade surplus. The challenge is to achieve this rebalancing of world demand in a way that avoids both a decline in real economic activity and an increase in the rate of inflation.
Since the United States first became a global superpower, it has been fashionable to speak of its decline. But in today's world, the United States' economic and military strength, along with the attractiveness of its ideals, will ensure its power for a long time to come.
