Shortly after World War II, the United States had realized its potential as an economic powerhouse in the global market. Before that, its economic strength was only hinted at during such times as the Industrial Revolution, the Gilded Age, World War I, and even through a global depression that was deeply impacted by the U.S. economy. However, from the mid 20th century up until today, the U.S. has been able to dictate the terms of service in most parts of the globe. The exception was Russian influence during the Cold War.
America has been the global trade leader for a long time.
Trade has heavily relied on U.S. dominance globally for many years and in one form or another will remain a global powerhouse for many more years to come. However, how long will that really last? For most of modern American history, this system has benefited global trade by creating greater market stability but America’s relationship with the world is undoubtedly changing.
You can especially see this dynamic between the U.S. and the North Atlantic economic block. America’s influences over most European nations and other surrounding countries within that specific economic block has existed for many years. More specifically, most of these nations are also NATO members. After all, without U.S. influences, Europe may have taken a lot longer to rebuild after the devastation of World War II.
The U.S. has used its economic might to influence this block through economic packages such as the Marshall Plan to hold sway over economic growth and to create stability within that block. To such a degree, the U.S. had held vetoing power, both literally and figuratively, over these nations within the block.
The times are changing and U.S. influence is changing
However, within this long period of stability, it was only a matter of time before cracks would start to show. In recent years (maybe even a little before that), U.S. economic dynamics have become a little more chaotic than the once-stable system that had dominated most economies. This has created an environment of increased uncertainty – the kind of uncertainty that causes economic partners to grow weary of the status quo. It’s a weariness that causes nations to look inward and outward towards their places in the global market. Europe and other western nations have taken such steps in order to relieve themselves from such dependencies, and I truly believe other nations around the world with follow suit.
Looking ahead
So far, it probably seems as though these words are all doom and gloom, but that is not the objective. The objective is to only state the reality of the situation. Without facing reality, we really cannot embrace the way in which global trade is changing. Most (if not all) nations rely on each other to ship goods to and from one another. Most nations can no longer exist in a vacuum because we never truly have existed in a vacuum in the modern age.
In looking towards the future, the world doesn’t have to look at the U.S. as a trading partner to fear or as a hostile partner, but instead the world can look at the U.S. as a trading partner that is fair and is willing to work with others on equal ground. And with that, the world can truly be a global network.
