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

Patrick O'Shaughnessy welcomes Walter Russell Mead, a distinguished fellow in US foreign policy, to discuss the current state of American power, the unique political style of Donald Trump, and the broader historical context of global dominance.

America's Enduring Power Amidst Global Crisis

Walter Russell Mead begins by describing the current geopolitical landscape as a paradox: the Pax Americana, established after 1945 and refurbished in 1990, is in crisis, yet American power itself is not. He argues that the networks and institutionalized relationships with Europe and other allies are indeed crumbling. However, the United States, as a power, is charging ahead, largely thanks to the information revolution and extraordinary increases in productivity. Mead characterizes the situation as an "odd picture of a dynamic country in a collapsing world system." He attributes much of the current disruption to the Trump presidency, which he believes exaggerated existing trends. Despite the challenges, Mead remains optimistic about America's long-term position, though he acknowledges the US is currently in "rough waters."

O'Shaughnessy asks Mead to elaborate on what he means by a "collapsing world system." Mead points to the World Trade Organization as an example, noting that the rules-based system for trade has eroded, with tariffs now often dictated by the whims of the US president. He also highlights the decline in the US's reliance on international institutions like NATO and the UN, a departure from the post-World War II principle of maintaining a steady and predictable foreign policy. Mead explains that past administrations aimed to provide a "bedrock of solidity" in global affairs, ensuring allies could rely on US commitments. In contrast, he believes President Trump maximized his advantages by being completely unpredictable and crossing traditional diplomatic lines, effectively "trashing the institutional networks" that were once the vessels of American power. Mead suggests that rebuilding these networks will be a significant challenge for future administrations.