Market Capitalism Goes Global

"The U.S. is losing market share in the global economy, and that is not necessarily a bad thing," according to Dan Grossman in today's NY Times.

"The U.S. share of global GDP fell to 27.7% in 2006 from 31% in 2000. In the same period, the share of Brazil, Russia, India and China — the rapidly growing emerging markets referred to as the BRICs — rose to 11% from 7.8%. China alone accounts for 5.4%.

The fact that economies that were closed to outside investment a generation ago are now creating systems of market capitalism should be seen as a victory for the U.S., not a defeat. “Many of the countries that are doing well are mimicking the best of what the U.S. has stood for — globalization and the export of the American capital markets culture,” said Mr. O’Neill at Goldman Sachs."