Red, White and Bold: The New American Century

Introduction Why it Matters The United States is not just another country. America has been a rich country from the very beginning. Hessian mercenaries were startled by the standard of living they encountered as they marched to Manhattan to put down the American rebels. After the Americans emerged victorious, fully one third of the Hessians decided to make America their new home. America is a nation with a why not attitude and represents a land of second chances. Deep in the DNA of America is the ambition for success and the drive to stay first among equals. Why does it matter that it stays this way? It matters because America is the world’s last best hope, a force of good in the world, first among equals and an indispensable source of progress, discovery and growth. Benjamin Franklin echoed this sentiment when he stated that the “cause of America is the cause of all mankind.” American values are Western values and we still set the clock of the political and commercial world. But is this the attitude that most Americans have about their country right now? Polls show quite the contrary. The message is decidedly negative dwelling on our nations past mistakes and shortcomings and our economic and social problems. At risk is the belief that America’s tomorrow will be better than today. This book is a blueprint to finding our way forward and getting back on track. It starts with recognizing ten reasons why America has become “first among equals” and the leader of the world. Next, it examines the threats to America’s prosperity and leadership. We face growing economic competition from Europe and other emerging nations such as India and China but our biggest threat to staying on top of the world is ourselves. Then we turn to how to navigate back to growth and prosperity and fulfilling the promise of our founding fathers. Learn why it is absolutely essential to avoid the missteps of Japan following its real estate bubble and financial meltdown. One lesson is that we should not follow the path of more government spending, higher taxes, more regulation and red tape. Then we need to emulate and appreciate the values and principles of great leaders like George Washington, Abraham Lincoln and Alexander Hamilton. They gave us the blueprint of self-reliance, independence, opportunity for advancement, discovery and exploration, openness, unity, and as Thomas Jefferson put it: “ a government small and frugal”. Now we just have to follow it. Finally, we end with a “why not” agenda that will without doubt lead to a new American century and will transform the world into a better place. Our future is in our hands and it is an unbounded future full of opportunity and hope. Americans should be proud of its country’s past, appreciate its current strengths and step confidently into its best future. If you are looking for a much more positive view of America’s past, present and future – this book is for you. The current economic downturn is but a bump in another American century that will make the 20th century look like a warm up for the big event. Volatility and swings in financial markets are nothing new since to some degree they are as inevitable as fluctuating human emotions. There were six sharp economic downturns in the 19th century. Walter Armstrong, the former chairman of Princeton Economics, calculates that there were 26 financial panics between 1683 and 1907. Most discussions highlighting America’s hegemony in the world dwell on statistics such as America representing about 25% of global economic output. More than a third of the world’s largest companies are American and 60% of the world’s reserve currencies are held in U.S. dollars. Our defense expenditures are equal to roughly half of world defense spending and ten times that of the United Kingdom’s defense budget. Our geographic and demographic advantages as well as out technological prowess are also often cited. These are all indeed impressive but we need to dig a bit deeper to get at the true foundation of America’s greatness. These key advantages cannot be captured by dry economic statistics for they are essentially ideas. As Winston Churchill once said, “America is an idea, not a place.” Here are just some of these ideas. Our political freedoms and system, our unique culture of second chances, educational opportunities second to none, our tradition of philanthropy, volunteerism and service, a foreign policy based on more than our narrow self interest, embracing new ideas and technologies, openness to legal immigration and acceptance of unequal outcomes. We have also made tremendous progress moving to a color-blind society and lead the world in such areas as the ease of starting a new business, respect for property rights, free press, due process and an independent judiciary, devotion to conserving our natural resources, love of the outdoors and competitive sports, belief in economic mobility and achievement based on merit. America can lengthen its lead if it doubles down on its commitment to deepening these winning traits. These traits are often unappreciated even by many Americans – but they underpin our economy and society and are vital to making what America is – the leader and envy of the world, the best hope of mankind. These traits embody the ‘why not” attitude that drives our growth and prosperity. The opportunity to be whatever one wants to be no matter how humble ones origins is one of the secrets of America – our “ace in the hole” in poker terms. In many countries, a person’s future is narrowly cast by their circumstances of birth. In some countries a humble beginning can be overcome by exceptional academic achievement but by ones late teens, the die is cast. Contrast this with the powerful story of Alexander Hamilton, born in the West Indies, fatherless with a mother who died while he was just a young boy, Hamilton rose to be General Washington’s aide-de-camp during the revolution and then our first and finest Secretary of Treasury and the architect of the modern American economy. My hope is that not only that you will find this book interesting and that it rekindles your appreciation for all the qualities and opportunities that America offers each and every one of us. Let’s get started looking at why America is first among equals, how we can outcompete emerging nations like China and avoid some of the mistakes of Japan and the unfortunate economic path that Europe has taken. We will end with a look back in American history for lessons to guide us to a “why not” agenda to strengthen our prosperity and leadership. Regardless of whether you are a Republican, a like-minded Democrat or discerning independent, keep an open mind and read this book with a forward-looking attitude for as Winston Churchill put it; “If we open a quarrel between the present and the past, we shall be in danger of losing the future”