Scarica Evolution of US Economic Hegemony: From Welfare to Consumption-Led Growth e più Appunti in PDF di Relazioni Internazionali solo su Docsity! Among Empires – Charles Maier America’s turn 1960s: Keynesian agenda adopted in many countries around the world: • Budget deficits accepted • Stable trade-off between low unemployment and low inflation = stable feature of growing economy (Phillips curve) US as regulator and guarantor of Keynesian welfare state => international economy without austerity BUT by late 60s this favorable moment ran into difficulties The imperial vocation in Doubt 1958: monetary convertibility in Europe, freer investment regulation in the US => easer fund flow from America French and British devaluation => more stress on the dollar US created the international liquidity needed for the reconstruction and growth. Following the Bretton Woods rules European banks had to accept dollars as a reserve. 1960s • working class started to have some fruits of hard work (television, motorinos…) • Social spending rose • Welfare systems • Institutions of higher education • Coalition of center-right gave way to coalitions of center left (US – democrats, Italy – socialist party, Germany – G. Social democrats, Britain – Labour Party) • Social change in America (no traditional family, no life in the suburbs, Simone de Beauvoir feminists manifestos) • Less US financial power, diminished balance in current account ■ America imported more than it exported ■ Costs of maintaining troops abroad ■ Dollar surplus (US printed money and sold gold) Consequences: • De Gaulle decided to trade any further accumulation of dollar for gold (US obliged under BW) • Germany accepted to absorb dollars (danger of Soviet advance) • Inflationary pressure brought in Europe by US • No longer justified by reconstruction • Prosperity of Japan and Atlantic rested well on low energy costs America’s leadership, imperial coordination • Political European elites accepted a limited capacity for international decision making • America’s international economy as natural result of technological advantages • New transnational political elite • OEEC • Business leaders • Labor representatives • Development of Atlantic culture (American films, Americanization) But by the end of the 60s • American ascendency in question • Productivity and nuclear arsenal no longer supremacy • Fordism not effective anymore 1968 Nixon president • Navy • Vulnerabilities • Vietnam • Domestic problems (watergate) • Oil crisis • Empire overstretch Early 1970s • Oil consumption surged • OPEC emerged as an effective cartel ■ 1973, OAPEC embargo during Yom Kippur war ■ 1973-74, Petroleum price hikes • Political disarray in consuming country • Ex: Terrorist groups in Italy and Germany • The US empire seems to come apart New pattern of US hegemony: Nixon and Kissinger • Still many resources • No alternative to dollar • SALT arms control agreement seemed effective • Wider geopolitical ambitions • Opening to China and extrication from Vietnam • => tentative to less trammeled US role in the Middle East and Asia • Economic ascendancy (no longer Fordism) would depend on agricultural products, computer technology, popular culture, willingness to consume world products An empire of consumption After a decline, renewed cycle • Narratives of consumption as important role for power • Consume = choose civic activity • High levels of research and development • Universities • Computer innovators • Military arsenal expanded and refitted America was hegemonic and wealthy because poor societies needed US to make them wealthy. • Social movements requested the recognition and repairmen of accumulated group grievances and handicaps. Europe stabilized, more communistic activism. 1976, Carter: initially detente, then harder American line against soviet initiatives (intermediate-range missiles) In the mid-80s nuclear deterrence harder (just to avoid conventional invasion) • SALT I and II not sufficient • 1980, Reagan’s Star Wars defense, no agreement but significant advances • USSR entered a period of turbulent reforms. Arsenals limited. Global transitions Was America the only one leader or a primus inter pares in NATO? Crisis of hegemony in Europe avoided because of Soviet crisis. Carter casted out because of hostage crisis in Iran and OPEC II (1979), but his administration had a lot of merits: • Egypt and Israel reconciled at Camp David • Iran’s Shah was a Nixon’s ally (who didn’t care about oppressive regimes) • Tentatives to negotiate with European left parties to preserve stability and moderate their requests
