The Future of the Dollar
U.S. Financial Power Depends on Washington, Not Beijing
Two years ago, I argued in these pages that America was suffering from political decay. The country’s constitutional system of checks and balances, combined with partisan polarization and the rise of well-financed interest groups, had combined to yield what I labeled “vetocracy,” a situation in which it was easier to stop government from doing things than it was to use government to promote the common good. Recurrent budgetary crises, stagnating bureaucracy, and a lack of policy innovation were the hallmarks of a political system in disarray.
On the surface, the 2016 presidential election seems to be bearing out this analysis. The once proud Republican Party lost control of its nominating process to Donald Trump’s hostile takeover and is riven with deep internal contradictions. On the Democratic side, meanwhile, the ultra-insider Hillary Clinton has faced surprisingly strong competition from Bernie Sanders, a 74-year-old self-proclaimed democratic socialist. Whatever