Americans have avoided the most severe reactions to occasional economic downturns due to, among other things, fluctuations in global commodity prices. Despite the Great Recession and “quantitative easing,” we’ve profited from a more diversified economy and stronger institutions. The risk lies in our increasing reliance on government intervention and unsustainable spending resulting in long-term economic instability.
The US has seen a growing divide between the two major political parties. Populist leaders in the US, both on the left and the right, have seen a surge of support. Americans are disillusioned with the political establishment. Populist leaders offer appealing short-term solutions that could lead to long-term economic and political challenges.
With increasing polarization and gridlock, we may be facing economic challenges and a need for necessary reforms that require cooperation.
Calls for constitutional changes and a “political revolution” power American progressive movements. While these calls are often framed in terms of social justice and equality, they inevitably lead to the concentration of power and the erosion of checks and balances.
Despite such warning signs, the US has seen a push for increased government intervention in the economy. The Harris campaign has suggested price controls and nationalization of certain industries, which could lead to similar economic distortions and discourage private investment.