The Mississippi River is a powerful force that rolls on constantly, even if some may not think about it. Similarly, American capitalism continues to thrive and dominate despite claims of economic decline and criticism of neoliberalism. The Economist recently published a report showing that over the past three decades, American capitalism has accelerated and surpassed the economies of Europe and Japan.
America invests considerably in education, contributing to its technical prowess and increasing labor productivity by 67 percent between 1990 and 2022, compared to Europe’s 55 percent and Japan’s 51 percent. Moreover, American companies continue to generate exceptional value, with the S&P 500 index providing a return of approximately $2,300 dollars for every $100 invested in 1990.
Although China has become a superpower, America’s role in the global GDP has remained around 25 percent since 1990. More importantly, The Atlantic reports that millennials and Gen Z generations are actually better off economically than their predecessors, with household incomes even higher than Gen X and baby boomer households at the same age.
The American brand of capitalism prioritizes economic dynamism over security, with a focus on freer markets and smaller welfare states. However, the country has experimented with providing more security without hindering growth and social mobility. Between 1990 and 2019, social spending rose from 14 to 18 percent of GDP, and poverty hit an all-time low in 2021. Though criticized by some, the American model of capitalism has yet to be surpassed by any real-world alternative.
Despite a tumultuous political era and societal issues, American capitalism continues to flourish.
