We should hope that what has long made the US economy the envy of the world can withstand whatever damage one president can do in a few months.
The American economy really is exceptional. It is richer, more innovative, and continues to expand at a high rate compared to most of the developed world. It has been extra special the last 15 years, with its equity market outperforming any other country as growth prospects for China and Europe dimmed.
But it seems exceptionalism might be ephemeral. Uncertainty around trade and the future strength of the dollar has led some big European investors to retreat from American stocks. And the problem may go deeper. Less than 100 days into a second Trump administration, commentators are already discussing the coming end of American exceptionalism.
Many things make the American economy exceptional. For one, it houses the deepest and most liquid capital markets, which help channel money to its more productive uses. But what makes it truly extraordinary is its dynamism, which underpins innovation and productivity, attracting talent from around the world.
Continue reading the entire piece here at Bloomberg Opinion (paywall)
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
Photo by Jackal Pan/Getty Images
