My recent posts have discussed the role of the U.S. in the world and how it could be improved.  Ever since the end of WWII, the U.S. has been the leader of the free (democratic) world.   Since the end of the Cold War in the late 1980s, the U.S. has been the dominant power in the world.  Our economic and military strength has given us the clout to maintain stability and order worldwide.

How does the U.S. stand today, both domestically and internationally? First of all, we have several very serious domestic problems:

• As a result of $5 trillion in covid pandemic stimulus spending, inflation flared up starting in Spring 2021 and is still, at 3.1% in November 2023, at a high level. The Federal Reserve has indicated that it doesn’t expect to raise short-term interest rates any higher than the current level of 5.25%, but how soon will it be able to lower this rate substantially? In the meantime, home mortgage rates are very high which greatly retards the housing market.

  

• With ever-larger annual spending deficits ($1.7 trillion in FY 2023), our national debt is ballooning. This creates a huge fiscal trap for the future, all the more urgent because higher interest rates mean higher interest payments on our current massive debt of $34 trillion.

  

• Our southern border is now virtually out of control, with 10,000 or more illegal immigrants entering the country every day. It will be difficult for Congress and the President to get this very serious problem back under control.

In addition to these domestic problems, the U.S.-led international rules-based order is becoming more unstable.

• First of all, in August 2021, was our disastrous withdrawal from Afghanistan. Biden’s own military advisors recommended keeping a small residual U.S. force to support the Afghan army but this did not happen.  Consequently, our hasty withdrawal left a chaotic situation on the ground and the Taliban took control immediately.
• In February 2022, Russia invaded Ukraine. The Ukrainian people are valiantly resisting the invasion with much material support from the U.S. and its European allies.  Russia is supported by military supplies from both Iran and North Korea.  It will be difficult for the much smaller Ukrainian army to push the Russians out.

  

• Just two months ago, on October 7, the Hamas forces in Gaza attacked Israel across the border, killing 1200 people. Now, there is a war raging in Gaza as Israel attempts to drive Hamas out.

Conclusion.  Presently, we are facing big domestic problems (inflation, massive debt, open southern border) at the same time as the stable U.S.-led world order is being challenged by several of our autocratic adversaries.  In other words, the U.S. has big domestic and international problems to deal with simultaneously.  Can our national leaders rise to the task of meeting these big challenges?

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