Walter Russell Mead - How America Keeps Winning - [Invest Like the Best, EP.490]

In a fascinating conversation with Patrick O'Shaughnessy, Walter Russell Mead, a distinguished fellow in foreign policy, offered a sweeping historical perspective on America's role in the world, the evolving nature of power, and the profound impact of technological and political shifts.

America's Enduring Power Amidst a Collapsing World System

Mead began by painting a nuanced picture of America's current standing. While the post-1945 Pax Americana, refurbished in 1990 after the Cold War, is in crisis, American power itself is not. Mead argues that the networks, institutionalized relationships with Europe, and the way the US deals with the world are indeed crumbling. However, the United States, as a power, seems to be charging ahead, thanks in large part to the information revolution and extraordinary raises in productivity. He describes this as an "odd picture of a dynamic country in a collapsing world system." The Trump presidency, in Mead's view, exaggerated many of these disruptions. He expresses optimism about America's long-term position but acknowledges the current "rough waters."

Patrick pressed Mead to elaborate on what he meant by a "collapsing world system." Mead pointed to the World Trade Organization as an example. What used to be a rules-based system for trade has devolved into a landscape where tariffs are dictated by the whims of a president. The US, which once exercised its power through institutions like NATO and the UN, is no longer doing so. Mead highlighted that since World War II, American foreign policy has been built on principles of steadiness and predictability, ensuring allies could rely on US commitments. This bedrock of solidity is now being eroded, as President Trump, in Mead's assessment, maximized his advantages by being completely unpredictable and crossing traditional diplomatic lines. Trump's approach, Mead believes, is trashing the institutional networks that were the vessels of American power, making them very hard for his successors to rebuild.