The U.S. Economic Decline Cannot Be Stopped
Military dominance without industrial strength is meaningless
The US once stood as the pinnacle of industrial might, accounting for half of the world's global production in the 1950s. Fast forward to 2025, and that share has plummeted to a mere 12% . Despite political rhetoric promising a return to industrial glory, the structural realities tell a different story. This decline isn't just an American issue; it offers critical lessons for nations worldwide, especially in Africa, where economic strategies are being reevaluated in light of shifting global dynamics.
Recent U.S. administrations have championed the idea of reindustrialisation, with promises to bring back manufacturing jobs and restore economic dominance. However, these initiatives often lack substantive backing. For instance, President Trump's tariffs on 150 countries were touted as a means to rejuvenate domestic manufacturing. Yet, these measures primarily resulted in increased costs for American consumers and businesses without significant job creation .
Moreover, the U.S. faces a labor shortage in manufacturing sectors. Despite high wages in industries like steel manufacturing, companies struggle to attract workers due to factors like inadequate local amenities and a declining interest in traditional manufacturing roles among younger generations.
In stark contrast, China has embraced a state-led economic model, investing heavily in infrastructure, education, and technology. State-owned enterprises (SOEs) play a pivotal role in strategic sectors, allowing for coordinated economic planning and development . China's dominance in areas like shipbuilding and high-speed rail is a testament to the effectiveness of this approach.
Russia, too, has demonstrated resilience by leveraging its industrial base to sustain prolonged military engagements, challenging the capabilities of NATO countries. This underscores the importance of maintaining a robust industrial foundation for national security and economic stability.
For African countries, these global shifts offer valuable insights. The U.S. model, characterized by privatisation and market-driven policies, has shown vulnerabilities, particularly in times of crisis. In contrast, China's state-centric approach has facilitated rapid development and poverty alleviation.
African nations might consider adopting elements of state-led economic planning, focusing on building domestic industries, investing in infrastructure, and prioritizing education in science and technology fields. Such strategies could foster economic resilience and reduce dependency on external powers.
Zimbabwe's decision to remove tariffs on U.S. goods in response to American trade policies exemplifies a reactive approach that may not serve long-term national interests. Instead of opening markets unilaterally, countries should assess the broader implications of such policies on local industries and employment.
The decline of the U.S. industrial base serves as a cautionary tale about the perils of neglecting domestic manufacturing and over-reliance on market forces. As global power dynamics evolve, nations, particularly in Africa, have the opportunity to chart their own paths, drawing lessons from the successes and failures of others. Embracing strategic planning, investing in key sectors, and fostering self-reliance could pave the way for sustainable development and economic sovereignty.
@GGTvStreams