Is US Economic Power in Decline Since the 1970s?

Table of Contents

I. Introduction

II. 1. Elucidating the Elements of the Research Question

II. 1. 1. The US as an Actor on the International Stage

II. 1. 2. Power in International Political Economy

II. 2. The Development of US Economic Power

II. 2. 1. The First Decades After the End of World War II

II. 2. 2. The 1970s: The Demise of the Bretton-Woods System

II. 2. 3. The 1980s: Reaganomics and the Proclaimed US Decline

II. 2. 4. The 1990s: ‘The End of History’ and the Asian Financial Crisis

II. 3. Assessing US Economic Power at the Beginning of the 21st Century

III. Conclusion and Perspectives

Research Objectives and Key Topics

This study investigates whether the economic power of the United States has been in decline since the 1970s, moving beyond traditional indicators of a nation's power base to analyze structural power within the global political economy. It aims to determine if the US maintains control over international economic outcomes despite relative shifts in GDP or trade dominance.

• Theoretical conceptualization of economic and structural power in international relations.
• Historical analysis of US economic hegemony from Bretton Woods to the post-Cold War era.
• The role of private economic actors, Multinational Corporations, and the 'Wall Street-Treasury complex' in shaping global finance.
• Critique of 'declinist' arguments that focus on relational power rather than structural control.
• Evaluation of the contemporary 'Dollar-Wall Street Regime' and US 'sticky power'.

Extract from the Book

Summary of Chapters

I. Introduction: Outlines the research purpose, focusing on the concepts of economic and structural power, and establishes the 1970s as the critical turning point for the international political economy.

II. 1. Elucidating the Elements of the Research Question: Defines 'the US' as a complex actor involving both the state and private institutions, and explores competing theoretical definitions of power, favoring the concept of structural power.

II. 2. The Development of US Economic Power: Provides a historical overview of US economic influence, detailing the collapse of the Bretton Woods system, the rise of neoliberal policies in the 1980s, and the dominance of the 'Wall Street-Treasury complex' in the 1990s.

II. 3. Assessing US Economic Power at the Beginning of the 21st Century: Argues that despite current account deficits, the US maintains supreme power through the global financial regime and its unique ability to issue the world's reserve currency.

III. Conclusion and Perspectives: Summarizes findings that challenge the thesis of US decline, emphasizing that the US continues to shape the structures of global finance, production, and knowledge.

Keywords

United States, Economic Power, Structural Power, Bretton Woods, International Political Economy, Wall Street, Financialization, Globalization, Anglosphere, Hegemony, Dollar-Wall Street Regime, Neoliberalism, Capital Mobility, Sticky Power.

Frequently Asked Questions

What is the primary focus of this academic work?

The work examines the evolution of US economic power since the 1970s, specifically questioning whether the US has entered a period of decline in the global political economy.

What are the core thematic fields covered?

Key themes include structural power in international relations, the transition from Bretton Woods to a market-led system, the role of financial markets, and the influence of Anglo-American neoliberal economic models.

What is the central research question?

The author explores whether the United States has truly lost control over global economic outcomes, or if perceived decline is merely a misunderstanding of how structural power operates.

What scientific methodology is utilized?

The study uses an analytical framework based on the concept of 'structural power' as developed by Susan Strange, contrasting this with classical realist perspectives that focus solely on relational power and material power bases.

What topics are discussed in the main body?

The chapters detail the historical development of US policy from the post-WWII era, the 1970s financial shifts, the 1980s Reaganomics, and the 1990s Asian financial crisis, concluding with a contemporary assessment of US financial dominance.

Which keywords best characterize the research?

The research is characterized by terms such as Structural Power, Dollar-Wall Street Regime, Anglosphere, Financialization, and Hegemony.

How does the concept of 'sticky power' relate to US economic dominance?

Mead's 'sticky power' is used to explain how foreign entities are trapped into maintaining the US-led system because they depend on the US as a market and a creditor, making a break with the US economically damaging for them.

How did the 1990s Asian financial crisis demonstrate US influence?

The crisis illustrated how US-led international organizations like the IMF promoted capital mobility, forcing affected countries to adopt neoliberal reforms that ultimately favored US-based financial actors.