More Americans See U.S. as Leading Economic Power
Despite recent economic uncertainties, a majority of Americans continue to see the United States as the world’s leading economic power, a belief that has become increasingly prevalent over the last several decades. With a wide range of factors acting as both contributors to and constraints upon the American economy, current perceptions of economic power offer an important window into the national mindset.
What Americans Know and Believe About Economic Power
Each year, the Pew Research Center releases the results of their survey on the American public’s beliefs and perceptions with regards to the global economy. In 2020 this survey revealed that 56 percent of respondents held the position that the United States was the world’s leading economic power, with only 26 percent believing that China was the leading world power and 18 percent unsure or not offering an opinion.
Most notably, this 56 percent rating was only five points lower then the survey’s all-time high, reflecting the general staying power of the United States’ current economic status even as threats to its position become increasingly prevalent. This level of confidence was higher amongst Democrats (67 percent) than Republicans (47 percent) and nearly twice as high amongst US born adults (60 percent) as those born overseas (32 percent).
Historical Trend of American Perception of Economic Power
The Pew survey found that over the last twenty-seven years, this belief that the United States is the leading economic power has ranged between 44 to 56 percent, with the average rating fluctuating between 49 and 52 percent. There have been two major peaks with the first occurring in 2005-2006 when the belief reached the 56 percent mark and again beginning in 2016 and extending through the current period where opinions of economic power topped the 56 percent mark once more.
For the most part, gains and losses in belief in the United States’ economic power have tended to track with actual economic performance as well as the key public debate points of the time. This follows trends that began in the 1990s when the belief in American economic power was bolstered by the strong post Cold War economy and the Clinton presidency. It then shifted lower in the mid-2000s before rebounding in the wake of the 2008 financial crisis and the Obama administration’s recovery efforts.
Factors Behind Belief in the US as the Leading Economic Power
Just what are the factors that have enabled the United States to maintain its status as the leading economic power for so long? The answer lies in both the external and internal influences acting on the country’s economy. From abroad, the United States benefits from having a positive image with trading partners, a stable political environment and a suite of innovative companies that remain the world leaders in many areas.
At the same time, the US internal economic structure remains strong thanks to the robustness of its core neoliberal foundations consisting of:
• A well-developed financial sector that serves as both an engine of growth as well as a cushion for downturns.
• A highly educated workforce that is among the world’s most productive and capable of iterating and developing disruptive technologies.
• Low barriers to entrepreneurship which has fostered new businesses, many of which have grown to become market giants.
To be sure, some of these foundations are under increasing pressure with growing levels of inequality, the rise of populism, and the increasing automation of many professions all threatening to undermine their efficacy.
Competitive Threats to US Economic Position
When looking abroad, few countries are on the same level as the United States when it comes to economic power. To this end, the two primary competitors tend to be China and the European Union. On a broad scale, both are currently attempting to challenge American preeminence in the global economy by increasing their domestic education attainment, building a larger manufacturing base, and utilizing state funds to jumpstart technological innovation.
In the case of China, this trend has been particularly strong with their economy exacerbating the impact of the pandemic and providing additional motivation for the US to renew its focus on long term economic planning. This has led to a variety of tariff structures, foreign investments, and technology-based measures being used to preserve the US position or give it an edge when competing against Chinese competitors.
The belief that the US is the world’s leading economic power remains one of the few truly bipartisan issues within the US. Though recent economic challenges may have caused some unease, the underlying foundations of the American economy remain strong and, if they can be nurtured and sustained, the United States remains well positioned to retain its economic status in the future.
