To put it simply, the closer other nations come to our economic level, the more they will want to buy our stuff. Indeed most of those nations are growing rapidly, so we can expect their attentions to shift toward American exporters. The leading categories of American exports today—civilian aircraft, semiconductors, cars, pharmaceuticals, machinery and equipment, automobile accessories, and entertainment—are going to be in the sweet spot of growing demand in what we now call the developing world.
As a major exporter (among other strengths), the United States can be expected to maintain and even extend its investments in its Navy and Air Force. The current defense budget austerity won’t last very long, meaning, among other things, that it won’t be a fun time to be a pirate.
The class of elite labor will grow, and protest against the “one percent” will seem anachronistic. ... (S)ignificant segments of the American workforce are likely to continue suffering falling real wages, even in a time of rising export prowess. ... We will continue to cut a proverbial “deal with the devil”, in which ever more jobs will be created in the relatively protected service sectors, while much of the economic dynamism and income gains will accrue to the capitalists, CEOs and managers who dare to export.
A lot of people complain about this deal from both sides of the political spectrum, but few observers are willing to countenance a truly open, competitive set of educational, governmental and health care institutions as a remedy. Libertarian-leaning recommendations for open competition everywhere may or may not be acceptable to us, but they have a bracing way of pushing the truth before our eyes.