by HUSSAIN ABDUL-HUSSAIN
By abandoning manufacturing, the U.S. has cleared the path for the Beijing Formula to replace the Washington Consensus
The more the West manufactured, the more capital it accumulated, and the more markets it conquered. Wealth could afford standing mechanized armies that allowed the various European powers to subdue the world and use their might for their own mercantile interests – often leading to clashes over these interests.
While many historians argue that the raging intra-European conflicts ultimately led to the demise of their empires, a few other economic historians now attach the decline of the British Empire (for example) to the country’s decision to slowly abandon its manufacturing sector in favor of service-oriented economies, in particular financial services. Britain was then replaced by other countries whose economies were perfecting manufacturing of all sorts: Enter the United States.
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