It’s fashionable now to talk up Emerging Markets, America’s decline, and a “New Paradigm”. I can see all the rage, just take a look at the markets recently - Emerging Markets are killing it! Especially India.
But where exactly does the US stand economically right now? The answer is still far above the rest. Per the Pragmatic Capitalist:
- Our GDP per capita is 6x China’s
- Our nominal GDP is 23% of world output
- (Brazil + Russia + India + China) < US economy
- US Exports Alone > nominal GDP of Russia
- The US % of World Equity Market Cap is 30%
- Brazil + Russia + India + China (includes Hong Kong) = 21% of World Equity Market Cap
- Japan + Germany + France + UK = 20% of World Equity Market Cap
- Japan + Germany + France + UK = 13.6T Nominal GDP in US$, which is less than the 14.5T Nominal GDP in the US
Am I denying that our economic position in the world is getting relatively smaller? No, it certainly is. I am only pointing that we are still the top dog and by a lot. The death of America’s economic influence has greatly been exaggerated.
Further, just because our position is getting smaller doesn't mean we lose. If world GDP and market cap grow and ours does along with it, everyone wins.
