USA’s trade policy in the context of global crisis and the decline of North American hegemony

Abstract

The global crisis of 2007 reinforced the deflationary tendencies, as well as the withdrawal of the central countries inwards. After the Great Recession 2008-2009, most economies have experienced semi-stagnation and deglobalization processes. The crisis accelerated the decline of the hegemony of the United States. While they retain an overwhelming military advantage and maintain financial hegemony, they have lost ground in production, in international trade and in direct foreign investment. Trump’s trade policy will accelerate deglobalization. And while its tax cut has had a short-term positive effect on growth, it will be difficult to overcome “secular stagnation”.

The Decline of American Hegemony: Biden’s Foreign Policy Towards China

“…But it all stopped there. The fundamental change to a more aggressive policy toward China came with Trump’s administration, which turned China into the “strategic competitor” and ‘main enemy’ (see Guillén, 2019). The anti-China discourse took on a Cold War-era anti-Communist tone with Trump (see, for example, Navarro & Autry, 2011).…”

“…Neoliberalism and financialization became naturalized. The “regime of accumulation dominated by finance” (RADF) (Chesnais, 1994; Guillén, 2015, 2021; Serfati, 2011) replaced the Fordist regime of accumulation. The so-called “new economy” based on the development of the electronics industry and the internet, together with the RADF and the growing financialization and globalization associated with its operation, allowed the United States to experience an economic boom, largely speculative, during the 1990s, but at the price of concentrating income in the hands of the richest 1% of the population and weakening the world’s financial systems.…”