What the US Needs: A Return Cold War America

Neil Armstrong, 1969

Talking about the Olympics, a friend noted the US was beating China in the medal count. "In China they give athletes military positions so they can officially hold jobs while still competing as amateurs.  But we still beat ‘em" This conversation reminded me of Cold War rhetoric and how times have changed. In the Cold War, Americans never complained about how the USSR gave special treatment to their citizens. When the Soviets sent a man to space, the US made it a national priority to send a man to the moon. We used all our resources to ensure that the United States of America stayed the most competitive power on the planet.

Now, with China climbing the rankings and growing into the world's second largest economy, the US confronts this opponent with a passive mindset.  Outcries call for China to stop manipulating their currency and complaints rain about their below market value, state-backed loans.  The US “diplomatically” pleads with China to stop the practices that led the Red State to a golden age.  Responses to China’s growing power are passive at best.  What ever happened to America’s Cold War mentality of taking all steps necessary to out-compete rivals?

US (blue) vs China (red)

Confronted by China's cheap currency, unfounded inflation fears cause US inaction and leave Americans stuck with 8% unemployment (four years into the economic crisis and the US still has below-target inflation!). Instead of worrying about China's decisions to subsidize infrastructure investments with low interest loans, Congress weakly passes base-boned stop-gap transportation bills and continues to obstruct the formation of our own infrastructure banks (a novel proposal to leverage public/private partnerships and spur investment).  While cheap Chinese labor strips America of manufacturing jobs, proud Americans focus attention on strengthening high-end service professions and skilled labor.  But cutting teachers’ pay and decreasing education spending undermine any movement towards these lofty ideals.  This is not the America that worked to ensure its superiority against a Communist foe.

Instead of outcompeting China, America fights a losing battle against itself from within. The US fails to address aging infrastructure. The Fed sits idle, indecisively postponing important action.  Our country needs to rethink its misdirected complaints about China.  America needs to abandon its passive mentality and actively invest in a prosperous future.

What the US Needs: A Return Cold War America