Not that long ago, the U.S. had that global economy all to itself. From the 1950s to the 1980s, it was the world’s dominant producer and consumer. In countries spanning Europe to Latin America, and throughout Asia, success was determined by how well they could siphon off a bit of this incredible growth. Things began to change in the 1970s, however, when Japan and Germany started making cars and factory equipment and electronic gadgets that beat their American competitors. And for the next 30 years, the U.S. struggled to adjust to increasingly competitive Asian and Latin American producers. But as long as it remained the world’s largest consumer market, the U.S. maintained lots of leverage. The government persuaded Pakistan to join the global war on terror, for instance, partly by promising its sock manufacturers duty-free access to its market.
