Wednesday, January 02, 2008

Explaining the United States.

A friend sent me this Stratfor net assessment of the US. Unfortunately, the link is for members only. I will carry a copy of this assessment with me to give out to people who have a hard time understanding what the US is all about, or insist that the US is exactly the same as any other country. Here are some excerpts:

You can look at the United States and be awed by its dynamic power, and terrified by it at the same time.

All nations have complex psyches, but the American is particularly complex, contradictory and divisive. It is torn between two poles: dread and hubris. They alternate and compete and tear at each other. Neither dominates. They are both just there, tied to each other. The dread comes from a feeling of impending doom, the hubris from constantly overcoming it.

Hubris is built into American history. The American republic was founded to be an exemplary regime, one that should be emulated. This sense of exceptionality was buttressed by the doctrine of manifest destiny, the idea that the United States in due course would dominate the continent. Americans pushed inward to discover verdant horizons filled with riches one after another, indelibly impressing upon them that life was supposed to get better and that setbacks were somehow unnatural. It is hard not to be an economic superpower when you effectively have an entire continent to yourself, and it is especially hard not to be a global economic hegemon once you've tamed that continent and use it as a base from which to push out. But the greatest driver for American hubris was the extraordinary economic success of the United States, and in particular its extraordinary technological achievements. There is a sense that there is nothing that the United States cannot achieve - and no limits to American power.

But underlying this extraordinary self-confidence is a sense of dread. To understand the dread, we have to understand the 1930s. The 1920s were a time of apparent peace and prosperity: World War I was over, and the United States was secure and prosperous. The market crash of 1929, followed by the Great Depression, imprinted itself on the American psyche. There is a perpetual fear that underneath the apparent prosperity of our time, economic catastrophe lurks. It is a sense that well-being masks a deep economic sickness. Part of the American psyche is braced for disaster.
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This fault line consistently polarizes American politics, dividing it between those who overestimate American power and those who underestimate it. In domestic politics, every boom brings claims that the United States has created a New Economy that has abolished the business cycle. Every shift in the business cycle brings out the faction that believes the collapse of the American economy is just over the horizon. Sometimes, the same people say both things within months of each other.

The purpose of a net assessment is not to measure such perceptions, but to try to benchmark military, economic and political reality, treating the United States as if it were a foreign country. We begin by "being stupid": that is, by stating the obvious and building from it, rather than beginning with complex theories. In looking at the United States, two obvious facts come to light.

First, the United States controls all of the oceans in the world. No nation in human history has controlled the oceans so absolutely. That means the United States has the potential to control, if it wishes, the flow of goods through the world's oceans - which is the majority of international trade. Since World War II, the United States has used this power selectively. In general, it has used its extraordinary naval superiority to guarantee free navigation, because international trade has been one of the foundations of American prosperity. But it has occasionally used its power as a tool to shape foreign affairs or to punish antagonistic powers. Control of the oceans also means that the United States can invade other countries, and that - unless Canada or Mexico became much more powerful than they are now - other countries cannot invade the United States.

Second, no economy in the world is as large as the American economy. In 2006, the gross domestic product (GDP) of the United States was about $13.2 trillion. That is 27.5 percent of all goods and services produced in the world for that year, and it is larger than the combined GDPs of the next four countries - Japan, Germany, China and the United Kingdom. In spite of de-industrialization, industrial production in the United States was $2.1 trillion, equal to Japan's, China's and Germany's industrial production combined. You can argue with the numbers, and weight them any number of ways, but the fact is that the United States is economically huge, staggeringly so. Everything from trade deficits to subprime mortgage crises must be weighed against the sheer size of the American economy and the fact that it is and has been expanding.

If you begin by being stupid instead of sophisticated, you are immediately struck by the enormity of American military power, based particularly on its naval power and its economic power, which in turn is based on the size and relative balance of the economy. The United States is the 2,000-pound gorilla of the international system. That means blows that would demolish other nations are absorbed with relative ease by the United States, while at the same time drawing howls of anguish that would lead you to assume the United States is on the eve of destruction. That much military and economic power does not collapse very easily or quickly.

The United States has two simple strategic goals. The first is to protect itself physically from attack to ensure its economy continues to flourish. Attacks against the United States are unpleasant, but invasion by a foreign power is catastrophic. Therefore the second goal is to maintain control of the seas. So long as the oceans are controlled by the U.S. Navy - and barring nuclear attack - the physical protection of the United States is assured. Therefore the United States has two interests. The first is preventing other nations from challenging American naval hegemony. The second is preventing other nations from acquiring nuclear weapons, and intimidating those who already have them.

The best way to prevent a challenge by another fleet is to make certain the fleet is never built. The best way to do that is to prevent the rise of regional hegemons, particularly in Eurasia, that are secure enough to build navies.
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The operative term for the United States is "huge." The size of its economy and the control of the world's oceans are the two pillars of American power, and they are intimately connected. So long as the United States has more than 25 percent of the world's GDP and dominates the oceans, what the world thinks of it, or what it thinks of itself, is of little consequence. Power is power and those two simple, obvious facts trump all sophisticated theorizing.

Nothing that has happened in the Middle East, or in Vietnam a generation ago or in Korea a generation before that, can change the objective foundations of American power. Indeed, on close examination, what appears to be irrational behavior by the United States makes a great deal of sense in this context. A nation this powerful can take extreme risks, suffer substantial failures, engage in irrational activity and get away with it. But, in fact, regardless of perception, American risks are calculated, the failures are more apparent than real and the irrational activity is more rational than it might appear. Presidents and pundits might not fully understand what they are doing or thinking, but in a nation of more than 300 million people, policy is shaped by impersonal forces more than by leaders or public opinion. Explaining how that works is for another time.

The magnitude of American power can only be seen by stepping back. Then the weaknesses are placed into context and diminish in significance. A net assessment is designed to do that. It is designed to consider the United States "on the whole." And in considering the United States on the whole, we are struck by two facts: massive power and cultural bipolar disorder. But the essence of geopolitics is that culture follows power; as the United States matures, its cultural bipolarity will subside.
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The United States is a powerful, complex and in many ways tortured society. But it is the only global power - and, as such, it is the nation all others must reckon with.



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