Hacker News new | ask | show | jobs
by dragonwriter 476 days ago
> Right now is a very interesting moment in that the future is crystal clear and yet so many people of all persuasions don't want to accept it for so many different reasons

Anyone who thinks the future is crystal clear is an extremely arrogant, and the narrative you present is inconsistent in ways which show an extremely poor understanding of the way international economics works.

> The USA is going to claw back whatever economic largesse it has granted to the rest of the world

It hasn't granted "economic largesse" to the rest of the world, and to the extent that that term can be stretched to describe something that has been granted, it can't be clawed back; the (extremely small, compared to the size of the economy) amount of aid has largely been about establishing influence and soft power, and trade isn't largesse, its mutually beneficial. To withdraw from it weakens both sides, and the US generally withdrawing will hurt the US more than the rest of the world.

> This is a net relative win for the US economically because once it claws back what it needs, it has a better ability to "go it alone" than any other country in the world.

The kind of retreat from wide trade to mercantilist protectionism might be a relative "win" for the US (though it would still be an absolute loss for all parties, contracting the aggregate production possibilities curve as well as that for all nations), if the US engagement in "go it alone" idiocy convinced every other country to try the same thing, and if you were right that the US was the best prepared to go it alone.

But, more likely, were it to occur, while it would be an absolute loss for everyone compared to what things would be without it, it would end up a relative loss for the US, because most countries wouldn't try to follow the US in going it alone, and the US's retreat will just be looked at in mystified disbelief by other nations as they continue to reap the benefits of trade and the US fades and falls behind in every way.

2 comments

Couple notes:

1. I don't like the characterization of "go it alone" because it obviously implies adherence to some kind of extreme that simply isn't represented in reality. No one is shutting down the ports and firing ambassadors; if it were possible to quantify these things (it isn't), reducing global power projection from 100% to 80% is not "going it alone".

2. The true form of "economic largesse" the US has given the rest of the world is Security. Its come at great cost to the country; America has lost ~600,000 souls in conflict in the past 80 years. I'm not saying America has a unique claim to losing lives in battle, Russia and China and others can claim much more devastation, but America is unique in the sense that nearly none she's lost were in her home hemisphere.

9/11 was maybe the only attack since Pearl Harbor that a foreign adversary successfully executed on American soil; but the wars that followed were really a tipping point in American force projection. We'd already been fighting wars in the middle east, then you go back further with Vietnam... America is a country that's spent eighty years chasing the Moral Righteousness it felt when it helped win WW2 for the Allies. The American people are tired of it; her sons and daughters work two jobs, can't afford a home, yet are asked time-and-time again by the latest rich disconnected President to deploy across the world to fight for "Freedom". Or, now, to send a hundred billion in military aid to Ukraine.

I think that's the "clawing back" the poster was talking about: maybe the story of the next century is one where America still projects force globally, but toward the more specific goal of Peace rather than post-WW2-era Western Idealism, and with an expectation of economic cooperation. Money has, after all, been the American God for many decades now.

3. The idea that the rest of the world would simply continue on in the wake of some idealized "US full-on isolationist pull out" is not rooted in reality; and that's part of the reason why this is not happening on the extremes. The US has been a critical force for both War and Peace over the past 80 years. If the US hadn't sent a hundred billion dollars to Ukraine over the past three years, Russia would own the country and share a new, huge border with NATO ally Poland. Implicit and Explicit US security guarantees have stopped China from projecting naval power across Taiwan and other SEA countries. US Support of Israel has... well, the region would look very different if we weren't there, whether there would be more or less war is another debate. My point is: The suggestion that America would lose relatively to the rest of the world in this unrealistic, hypothetical scenario, is not rooted in reality. The far more likely outcome of this unlikely scenario is: War, amongst military peers, the worst and most bloody kind of war, while America enjoys massive oceans, a trillion dollar defensive military, the most economically prosperous natural resources on the planet, and neighbors who could never put up a fight.

No one wins, but America and her western hemisphere allies would lose the least. Fortunately: This is not what America, today, wants. Its not even what the Trump administration wants. Again, a reduction from 100% to 80% is not a "full-on isolationist pull-out".

Regarding your #2, yes you're right; the cost of playing world police was at the top of my mind when I wrote that.

The other equally important thing in my mind which seems to get a bit less popular attention is trade balances. There are certain countries the US is engaged with where A) the US puts very low tariffs on them and they do not reciprocate; meanwhile B) the US provides some form of economic assistance to them whether it may be through military support, contribution to NGOs etc.

Those specific relationships I think the US can and will eviscerate or at least play serious hardball when it renegotiates, because what is it gaining today? Do you want a CIA listening post in northern Thailand or do you want to home-shore production of some of the things you've been buying from them, creating some working class jobs along the way? The US is not a one party state so its direction on these questions may be unclear for a while, but I think I know how Trump, Gabbard, Rubio etc. will answer that question as the working class very much put them in office (and there are plenty of Democrats who would be sympathetic to this approach too -- they just seem to get sidelined by their party leadership a lot).

> The US is not a one party state so its direction on these questions may be unclear for a while, but I think I know how Trump, Gabbard, Rubio etc. will answer that question as the working class very much put them in office

Endless misdirection of targeted greedy promises and opportunism did. The coins launched right before the election blew through the emoluments clause, and the tweet threatening removal of funding from universities with "illegal" protests is targeting the first amendment along with news organizations that are feeling the pressure.

The opposition will be but a token, and the bargaining power of the average person is the ultimate target for destruction.

Might have been worth reading if you hadn't kicked it off with an ad hominem. Bye!
It’s still worth reading if you can look past it. The comment refutes your comment totally and in good detail.