The United States has become the largest market in the world, and at the same time it delivers the highest standard of living to its citizens compared to the world’s other major economies. Contrast this success with other large economies such as China, where despite being the world’s second-largest economy, its citizens have a standard of living that has more in common with the developing world than a global powerhouse. Now China is facing demographic challenges that raise the prospect that as a nation, it may get old before it gets rich. Layer its long-standing repression and authoritarianism on to its economic challenges, and one is hard-pressed to see a domestic policy regime worthy of emulation.
Likewise looking to America’s south, and one is struck by the generations of squandered opportunities for prosperity in South America. As a region, South America has been buffeted by financial collapses, runaway inflation, and geopolitical instability. For nations digging out from a legacy of ruinous fiscal and economic policies, there is no easy route forward, only difficult tradeoffs. Argentina has certainly charted a new course and there is hope that near-term pain may pave a path forward to stability and long-term growth. But the present pain is very real.
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