"BOUND TO LEAD: THE CHANGING NATURE OF AMERICAN POWER" (JOSEPH NYE).   Term Paper ID:19568 Click to get this paper

Essay Subject: Critical review of work arguing that decline of U.S. is result of manufacturing economy in decline, political & international turbulence.... More...

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Paper Abstract: Critical review of work arguing that decline of U.S. is result of manufacturing economy in decline, political & international turbulence. Paper Introduction: America, according to Joseph S. Nye in the introduction to his book, Bound to Lead: The Changing Nature of American Power, is not in as much trouble as some "doomsayers" suggest. In his world view, "traditional theories about the rise and fall of great powers could lead Americans to pursue the wrong strategies in the new politics of the twenty-first century." (ix). The United States is not declining, he argues, but is merely experiencing a cycle of change, one which will redefine traditional hegemonic thinking. Some economists believe America's problems are the result of the government spending too great a percentage of the gross national product on defense, a situation sometimes described as "Imperial Overstretch." Nye disagrees with this conclusion and argues that America's decline Is the result of a manufacturing economy in transition. This Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. The economic state of affairs described above has been described bysome economists, including Paul Kennedy, as the result of a phenomenoncalled "Imperial Overstretch." Nye introduces this phenomenon at the frontof the book when he quotes from Kennedy's book, The Rise and Fall of theGreat Powers. Because of its political organization or a change in its societal patterns, it achieves either stability or launches on a substantially positive growth pattern (47). Within thisorganized whole, collectives like large corporations are highly significantactors. The United States is not declining, he argues, butis merely experiencing a cycle of change, one which will redefinetraditional hegemonic thinking. The first is that trade balanceinequities keep flexible exchange rates volatile, thanks to the speed offunds transfer and the sophistication of the international financialmarketplace. 2. Under this system, a country can become anet international debtor, which is what happened to the United States forthe first time in 1985. Bound To Lead: The Changing Nature of AmericanPower American Power. However, less than 3 wordslater, in the concluding sentences of the book, he resumes the bellicosetone he has maintained throughout the work. It achieves a high level of commercialization based on stability of financial patterns resulting in increased production of goods and services (39). An economist considers certainpast events and attempts to prove how these events affected the economy.This is the case in Nye's presentation of hegemonic development. economy's share of theglobal product was about the same 'then' as it is now.'" True, but such anopinion does not consider the recent growth in the Importance of "vehiclecurrency" (a system,devised by international monetarists to overcome thedifficulties inherent in the multilateral payments system, which letstransactions be channeled through specific currencies, thereby eliminatingthe problem of having balances tied up) or the incredible rise in power ofthe multinational corporation. The twentieth century saw different interestsassuming a measure of power, and during America's Golden Age, the 1945-197 period, even the demands of previously excluded racial minorities began tobe recognized. Kennedy argues that Imperial Overstretch occurs when acontemporary society is "militarily top-heavy [and repeats mistakes that)in their time, affected Phillip II's Spain, Nicholas Il's Russia, andHitler's Germany." (3) It is apparent t hat Nye intends this book more asan answer to, and refutation of, Kennedy's theories, rather than as apresentation of a new interpretation of the facts of economic life. Also, the United States had anorganizational advantage in its system of federal checks and balances whereindividual freedoms were considered more important than government. And in a democracy, the choices are the people's." Nyeis convinced that America is bound to lead ) but he ignores the possibilitythat other nations may choose not to follow. In fact, the corporate economy is a system of power, a collectionof private governments sometimes rivaling the political state in effectiveinfluence. When the economy stagnated and confidence in itscontinued growth diminished, the accustomed pluralist practices becameincreasingly less viable. As Nye sees it, "Britain's positionas the world's leading exporter of capital assured an inward flow ofdividends, which meant it did not have to worry about trade deficits." (56)Throughout the 19th century and continuing until World War II, the Britishgovernment maintained a strong laissez faire position toward business,espousing the belief that "what's good for business is good for thecountry." This free-market attitude led to substantial advances in businessand technology and helped position Britain as the hegemonic power of theworld. As a result, there is no genuine consensus onvalues (except perhaps a few proceduralisms and a generalized materialism)and no concept of the public interest transcending the immediate results ofthe ongoing group struggle. share of world G.N.P., which declined naturally since 1945, hasdeclined much more quickly than it should have over the last few years,"(6) Nye claims that it has not. Economics is not an exact science. It is his opinion that "since the Industrial Revolution, the United States and Britain have succeeded in this hegemonic role partially because they have imposed their will on lesser states and particularly because other states have benefitted from and accepted their leadership" (5 ). Jr. But this was possible only so long as expansion of theeconomic pie was assured. 3. 4. In his world view,"traditional theories about the rise and fall of great powers could leadAmericans to pursue the wrong strategies in the new politics of the twenty-first century." (ix). According to Nye, this was primarily becausethe United States, through its solid monetary system, its use ofindustrialized labor-saving devices, its factory system, and its rapidlyexpanding domestic market made it a power. "Charles Wolfof the Rand Corporation notes that 'if a more suitable and representativebase year is used-say, the mid-196 s (or even a pre-World War II year suchas 1938)--the remarkable fact is that the U.S. His response here is indicative of hisarguments throughout the book. Even with this evidence, Nye still argues that the Americangovernment should increase the budget amount it devotes for foreign aid anddefense spending to maintain its position of "International leadership."(259) With his typical optimism, Nye suggests that "the ultimate ironywould be for Americans to perceive these short-term problems as indicatorsof long-term decline and respond by cutting themselves off from the sourcesof their international influence." (26 ) Nye seems unwilling to considerthe theory that the American government should not increase its foreign aidbudget in an attempt to "buy" a position of world leadership. Works CitedNye, Joseph S. power in the twenty-first century will not be new challengers forhegemony but the new challenges of transnational interdependence." (26 )The phrase "transnational interdependence" suggests an enlightened timewhen all nations of the world work together. New York: Basic Books, 199 .----------------------- 1 One major reason Great Britain did not maintain its role of hegemonicpower in the 2 th century was that its attitude toward its provincesdrifted from the liberalism that had made it a power in the 19th centuryinto a conservative stance that brought about its decline. Some economists believe America's problemsare the result of the government spending too great a percentage of thegross national product on defense, a situation sometimes described as"Imperial Overstretch." Nye disagrees with this conclusion and argues thatAmerica's decline Is the result of a manufacturing economy in transition.This paper will analyze his arguments and examine the evidence he cites toreach this conclusion. Thus, a state of paralysis and qualifiedanarchy looms as economic growth becomes more difficult and egoistic groupsre-double their efforts to obtain suitable shares of a stagnant ordeclining per capita gross national product. In his words, "the UnitedStates remains the largest and richest power with the greatest capacity toshape the future. In such a context, the line between public and private isincreasingly blurred. It establishes a system of free trade (5 ). Daily lifebecame one continuous waxing and waning of supply and demand, held togetherby the mysterious attraction of money. Instead, he concludes "the problem forU.S. Duringthe first 6 years of the century, America led the world in research anddevelopment, a position which has only recently been taken away by Japan(which will probably be the hegemonic power of tomorrow.) According to Nye, the U.S. Britain's hegemony was seriously challenged at the turn of thecentury as the empire faced shattering economic upheavals. Among thecharacteristics of a "hegemonic power," within Nye's definitionalframework, one nation can be said to have hegemonic superiority overanother nation when at least four conditions exist: 1. The multinational has proved out in the newcompetitive environment because it has a built-in flexibility to moveproduction around the world, seeking the cheapest labor and financing. Third is that the impact of theBretton Woods treaty of 1944, where the value of gold was established,created a floating exchange rate which gave way, inexorably, to the conceptof the national account deficit. That policyhas been fruitless in the past, and he fails to present evidence that itwill be fruitful in the future. WhenKennedy suggests that our "overcommitments in foreign policy can bereduced," (3) Nye counters that such acts could "reduce American influenceoverseas without necessarily strengthening the domestic economy. constitutional order is best characterizedas a corporate state: an organized totality marked by numerous linkagesbetween formal government institutions and large private organizations andby the subordination of the individual to such private groups. Both in pluralist theory and in the United States of the 198 's,human beings are essentially egoistic, and the groups in which they resideare no less self-centered. The UnitedStates, after its entry into and its victory in World War I, became thedominant hegemonic society. It maintains a high level of research and development of inventions for consumer use and improved technology for industrial use (162). Nye in the introductionto his book, Bound to Lead: The Changing Nature of American Power, is notin as much trouble as some "doomsayers" suggest. He says, "However, other investigations do not support the case forcontinuous decline in America's share of the world product," (6) and theninstantly quotes sources more sympathetic to his thinking. When Kennedysuggests that America's decline has been continuous since 1945, and that"the U.S. The second is that under flexible exchange rates countriescan choose any monetary policy they like, creating a situation where theexchange rate--while volatile for the short term--will change over time toadjust for the inflation differentials. Further,the nations of the world have become so inextricably intertwined thatefforts to draw back would be difficult at best." (4). America, according to Joseph S. Three strong trends in the international finance world adverselyaffect America's power position. 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