[SIZE=7]The lessons from America’s astonishing economic record[/SIZE]
[SIZE=6]The world’s biggest economy is leaving its peers ever further in the dust[/SIZE]
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America remains the world’s richest, most productive and most innovative big economy. By an impressive number of measures, it is leaving its peers ever further in the dust.
If there is one thing that Americans of all political stripes can agree on, it is that the economy is broken. Donald Trump, who saw trade as a rip-off and his country in decline, came into office promising to make America great again. President Joe Biden is spending $2trn remaking the economy, hoping to build it back better. Americans are worried. Nearly four-fifths tell pollsters that their children will be worse off than they are, the most since the survey began in 1990, when only about two-fifths were as gloomy. The last time so many thought the economy was in such terrible shape, it was in the throes of the global financial crisis.
Yet the anxiety obscures a stunning success story—one of enduring but underappreciated outperformance.
America’s outperformance has translated into wealth for its people. Income per person in America was 24% higher than in western Europe in 1990 in ppp terms; today it is about 30% higher. It was 17% higher than in Japan in 1990; today it is 54% higher. In ppp terms the only countries with higher per-person income figures are small petrostates like Qatar and financial hubs such as Luxembourg.