The End of Dollar Dominance?

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Author: Manuel Guillen

In August 2010, China overtook Japan as the second largest economy in the world, yet it still trails the United States by about 10 trillion dollars. According to a recent Gallup poll, 52 percent of Americans believe China is the leading economic power of the world despite this substantial gap. While China’s growth has been substantial and American citizens should be concerned about that, a majority already believe that the U.S. has taken second seat. China’s increased economic power is a threat to American prosperity, and the U.S. must invest in itself to insure its continued financial stability.     

China’s primary economic objective is to become the number one economy in the world, threatening the U.S. standing in the world. If China takes the position of the strongest economy, the Chinese would have more control over global trade and a more influential role in the geopolitical landscape. Americans should not be complacent as China’s growth threatens the prosperity of the United States both now and in the future.

    An example of China’s significant investment efforts is in the area of environmental policy. According to Senior Policy Analyst at American Progress Julian Wong, “China is building out the necessary infrastructure upon which its clean energy transformation will take place… using some of the most efficient high voltage transmission lines…  also the economic infrastructure required to create a skilled workforce.” This evokes questions about why the U.S. Congress is arguing over how to work out an environmental policy, when China already is building its green infrastructure. Although it shuns democracy and political freedom, the Chinese government effectively executes necessary policy initiatives in a prompt manner, something that the United States does not do. Congress is constantly arguing over issues, some of which are petty and become an exchange of passing and killing bills. Rather than focusing on laws that create problems for this country’s citizens, Congress should implement policies that make the country stronger and give citizens a chance to pursue the American Dream.

The solution to China’s gain and our loss can be found through investment in America’s infrastructure and the creation of high-tech jobs that will fuel economic growth. The nation’s role in the global economy should inspire pride in every citizen. The people and its representatives must put the country’s economy on their list of priorities because by keeping the economy strong, the nation will be strong.

Months have passed since the midterm elections, and all the fuss about unemployment due to the recession has been forgotten. The United States of America has become too comfortable; it has allowed for other nations to gain economic parity, and arguably even superiority, which creates risks that are not apparent to most citizens. Whether it is convenient for the U.S. or not, China wants to grow, and it will. Yes, the U.S. needs to keep foreign allies, maintain trade relations and create alliances, but we must also keep in mind our own economic prosperity.

 

Manuel Guillen is a sophomore AHVA major.  He can be reached at guillen@oxy.edu.

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