6 reasons America will rise again

The US is down but not out. It could return to its dominant status, but it has 1 big obstacle in its way.

By Kim Peterson Aug 29, 2013 2:59PM
Cowboy America © Andrew Rich, Vetta, Getty ImagesThe U.S. economy is growing faster than economists expected, although the recovery is still weak.

One observer is confident the country has so many long-term advantages over its competitors that it will dominate the world again. A. Gary Shilling, a consultant and a columnist for Bloomberg View, made his case this week.

Here are the reasons Shilling thinks America will rise again:

Energy independence.
MSN Money wrote an entire series on this subject in July. Fracking has greatly helped the U.S. cultivate its own energy sustainability. It isn't there yet, but it's on track to be self-sufficient -- and maybe even become the world's next great oil exporter.

Immigrants. Immigrants tend to be younger and have higher birth rates. And the U.S. needs them, because in order to sustain the population in the long run, the country needs 2.1 births per child-bearing woman. Immigrants will also keep our population of working-age people (as a percentage of total population) from falling faster.

Entrepreneurial spirit. Even during the worst of the recession, Americans who were laid off or otherwise out of work showed a striking ability to start their own businesses. That's the heart of the American entrepreneurial spirit, which will keep America afloat.

Labor flexibility. Labor union membership has fallen fast, which for better or for worse means workers are more tolerant of decreases in pay. That will help buffer the country against economic turmoil.

Less foreign money needed. U.S. households have been on a saving binge, particularly after the housing bubble burst and home equity loans became harder to get. Americans will probably save more, Shilling wrote. That will ultimately reduce the need for foreign financing.

Strong dollar. Even though China is becoming the world's next superpower, reducing the U.S. presence on the global stage, nothing beats the U.S. dollar. The world still views the dollar as the primary reserve and trading currency.

So what's holding us back? Shilling didn't address this, but we have a pretty good idea. The one thing that could keep the U.S. from dominating again is its politicians and the petty squabbling and stifling bureaucracy in Washington, D.C. Time and again, we've seen how lawmakers on both sides of the aisle have kept America from moving forward. That doesn't look to change anytime soon.

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Tags: Economy
642Comments
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The strength is this nation is its citizens, the weakness of this nation is the people who run it.
Aug 29, 2013 5:34PM
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We do not need a new government.  We need to replace the privileged, entitled elitists we have elected to represent us.  Until we are willing to elect representatives, senators and presidents who are willing to serve without all the trappings of power, we will not make any progress.  Making separate rules for congress or exempting themselves from the laws they make for the rest of us is just WRONG.  Serving our nation is a priviledge.  If elected, get the job done you promised to do, and get out.  Politics is not a career.
Aug 29, 2013 4:06PM
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More reason for us to get rid of our goverment and to make a new one that better serves it's people instead of the politicians best interest.
Aug 29, 2013 5:24PM
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6 reason America will continue to decline

1) Over regulation

2) Taxes are too high

3) Rewarding irresponsible behavior

4) Willingness to punish and marginalize success

5) Too many Freebee-for-Meebees in the cart waiting to be pushed

6) Growing class of government dependent liberal voters

Aug 29, 2013 4:18PM
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The U.S. does not "need" immigrants.
They are the reason for most of our troubles. I don't enjoy paying for welfare trash that are citizens, let alone those who are here illegally.
CLOSE THE BORDERS.

Aug 29, 2013 4:04PM
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I guess they are talking about the 1%, the large corporations and Wall Street...oh, I forgot to mention our lame elected officials in Washington D.C. that do nothing and the deficit keeps growing.

 

Jimmy Carter said it best yesterday.  Anyone for a second United States Revolution???

 

 

Aug 29, 2013 5:25PM
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USA Joe
Jimmy Carter realizes he is no longer the worst president the USA has ever had, Obama is taking his place.

Aug 29, 2013 4:07PM
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The problem with all these new immigrants coming into the States is that they mostly come from Mexico and Latin America - way too much Spanish influence!  Ay Caramba!

Sure would be great if there was more diversity (French, Italian, German etc)

.

.

Aug 29, 2013 4:22PM
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If you think immigrants are the answer you need to set down your needle and spoon then go off yourself. 
Aug 29, 2013 5:15PM
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The world desperately needs a way to thrive with fewer, not more people.  And it's not just U.S., it's everywhere.  MSN money is not alone in this fixation with growth.  It really makes no difference if global warming is real, or it's false and we're in for another ice age.  The only way that we will support our current population is if nothing changes and technology makes us able to do more with less.  That would be all right, but I'm afraid that if we continue onward and upward with population, it will be way less with hardly anything.
Aug 29, 2013 4:33PM
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Hey. reason #7---------Obama will be out of power!   It'll take a few years to clean up the mess he made, but, we can do it.
Aug 29, 2013 5:56PM
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This countrys best days are behind it...get used to it getting worse not better
Aug 29, 2013 5:25PM
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Bologna!! This is not a recovery and our economy has more headwinds against it than ever before. Oil is going up and that will put more pressure on savings, Obamacare is pushing more people into part time low paying jobs, and the government takes in 5 billion and spends 35 billion a day. Oh, I forgot to mention Urkle wants another war that he doesn't plan to win because someone stepped over his red line in the sand and his knickers are in a twist. Why would any sane person announce to an enemy that they are going to shoot off a few billion in missiles for a few days and hope it ends in a truce.
Aug 29, 2013 5:09PM
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Kim- This is one of the most idiotic articles I have ever read.  Thanks
Aug 29, 2013 5:40PM
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Less foreign money needed? Really when we need to borrow to make interest payments?!?
Strong dollar?? Really, when the printing presses are running 24/7?!?
Entrepreneurial spirit??? Really, with a president saying "you didn't do that"?!?
Energy Independence???? Really, with a president insisting oil, coal and gas are eeeevil?!? 

Just what are you smokin?  You can't be that delusional in your natural state!

Aug 29, 2013 5:22PM
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The economy is "growing" fast, but the recovery is weak?  It's clear that economists have joined politicians in the art of semantic double-speak- a la forked tongue ... China is not the global economic super power being touted by numerous 'forked tongues'; they are where they are because of the U.S. and will only dominate their sphere of the world as this is their psychology.  Russia is actually better poised to be the world's dominant economic player with its rich reserves of oil and precious metals.  If the U.S. stepped away from its knee-jerk response to Russia and treated it like it has China, a very amiable and profitable partnership would ensue as Russian psychology espouses a true capitalistic spirit..  But the real obstacle standing in the way of America recovering its economic power is the leftist policies which are working to undermine the U.S. dollar as the world's reserve currency.  This is the singular thing keeping us globally afloat, and as long as the current wall street administration continues to play the Keynesian game of economics - we're doomed.
Aug 29, 2013 5:08PM
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you bet it will rise again, after all obama cant be re elected and nothing we have had was worse than him.  so we may have to wait until he is removed from office but things will get better

 

Aug 29, 2013 4:04PM
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Interesting, I guess we all look at the U.S. situation differently.

 

There will/should always be hope. . .

Aug 29, 2013 5:15PM
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POVERTY & A BURGER & FRIES WILL PUT US AHEAD OF THE REST OF THE WORLD
Aug 29, 2013 8:12PM
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From CliffsNotes regarding the fall of the Roman Empire:

 

"causes included political corruption, economic problems, and a series of leaders that — let's face it — were more interested in their personal gain than in the welfare of the common people."

 

Sound familiar?!!

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