The United States grew because it was a giant wealth transfer from Europe.

I’m spitballing here and really don’t want to look at data because data is no fun and makes thing suck (see Baseball)

Anyway, I was on a walk today and thought about World War I and World War II and thought, “Huh? The United States didn’t get destroyed, and Europe did in both of those wars? I wonder who rebuilt Europe?”

I know who? The United States! I posit this. The United States grew and dominated as a world power. This happened because Europe essentially imploded from 1914 to 1945.

The old order of Britain, France, Germany, and Russia ended. All that intellectual and financial capital went to the United States.

The British taught the USA about diplomacy.

The French taught the USA about philosophy.

The Germans taught the USA about science.

The Russians taught the USA about power.

We have been living in that unprecedented wealth transfer. We thought it was because of some sort of exceptionalism. In reality, it was just a coincidence of safety and knowledge transfer.

The 80-year run of the Pax Americana has ended. The final run after the Soviet Union’s collapse has also concluded. And now the United States has to compete on its own.

We have no advantage anymore. The equilibrium of wealth has distributed knowledge and wealth around the world.

The question is are we ready to compete again under this new world order?