The Evolution of American Dominance: From Isolationism to Global Leadership

Tracing the Path of the United States in the Shifting Landscape of International Relations

The United States of America from the end of the Cold War period and onwards, was and continues to be the most dominant political, economic, and military superpower in the world. In the last decades, we have seen rapid growth of countries such as China and India, which have threatened to overtake the supremacy of the US on a global stage.

The US faces many challenges on a global scale and its influence is diminishing, which was obvious in the ongoing Ukrainian and Middle Eastern conflicts. The US once had the power to shape the world in a way it wanted to, but now it’s not able to do that. However, this does not mean that the US is exiting the global stage, far from that, it is going nowhere. So, let’s discuss how the US got to where it is now.

Photo by Nik Shuliahin on Unsplash

Period of the U.S. Isolationism

The US is the most powerful economic force in the documented history of humanity and even today, in the changing world order, it preserves a dominant role. But how did it get to where it is?

Its story begins after it gained independence from the British Empire on July 4th, 1776. One defining factor that has played a big role in its development is a revolutionary system of governance, which was created by the founding fathers and enshrined in the American Constitution. George Washington, who was the most popular person at that time had the power to crown himself and to establish a monarchy if he wanted to, following the popular European model of governance. However, his decision not to take that route but to establish multiple branches of government has resulted in a political system that has created stability. Presidents were limited to two terms in office, thereby creating a system that is even today seen by many as the shining example of democracy, even besides all the problems that it brings with it.

At that same time, if the monarch in a European country died, in the best-case scenario he was succeeded by his successor, no matter how young or old, regardless of the competency of the successor to lead the state. In the worst-case scenario, the state was thrown into a bloody war between the contesting claimants on the throne, resulting in year-long devastating internal conflicts. The successful transition of power from George Washington to John Adams meant that there was a new system, which has guaranteed stability, which is a prerequisite for economic prosperity.

One additional factor, which has contributed to the large economic development in the U.S. is its geography. Not only is the U.S. rich in natural resources, it is also very well positioned. It has two neighboring states, Canada in the north and Mexico in the south, all of which share good and friendly relations with the U.S. On the east and west, its borders are protected by the oceans, making a land invasion of the U.S. almost an impossible task. This has meant that the U.S. could embark on a journey of economic development, without facing external threats, like its European counterparts.

Besides being recognized in the world as “the land of the free”, which it got as a result of many of its policies that have safeguarded individual rights and freedoms, the U.S. has supported and incentivized the ingenuity of entrepreneurs through judicial protection of patent rights. This has meant that if you have produced some original work, be it physical or intellectual, it was protected by the state as your own. This has further motivated individuals in the pursuit, of what is now known as “the American Dream”.

The period between 1760 and 1840 marks the occurrence of the Industrial Revolution in Europe and the world. The U.S. saw the beginning of the Industrial Revolution with the creation of a textile mill in Pawtucket, Rhode Island, in 1793. What differentiates the Industrial Revolution in the U.S. from the British Empire and other European countries is the level of incentivization of workers. Whereas Europeans have worked in factories owned by monarchs and the rich, in the U.S., one could even own a factory and be in full ownership of one’s means of production.

It shouldn’t then come as a surprise that many Europeans have migrated to the US, in search of a better life. This growth of population, coupled with sound policies, good geography, and a vast number of natural resources have created the U.S. into a hub for economic prosperity.

However, like any state, the U.S. has its dark side and it is called slavery. Yes, the contributing factors to its economic growth have been its isolationist policy, it is big enough with large resources, a growing population, and a market-friendly economy, but it would be unfair not to mention the contribution of enslaved workers. Besides it being termed “the land of the free”, it wasn’t free for all peoples.

A research paper authored by economist Mark Stelzner from Connecticut College and historian Sven Beckert from Harvard University, titled "The Contribution of Enslaved Workers to Output and Growth in the Antebellum United States," presents comprehensive estimations of enslaved workers' contributions to both regional and national economic growth from 1839 to 1859.

The study reveals that the labor of enslaved individuals played a crucial role in driving economic growth, not only within the South but also across the entire nation, comparable to the output growth of manufacturing workers in New England during the same period. Furthermore, the research highlights a widening income gap between White Southern households that owned enslaved workers and those that did not, which posed significant social and political challenges in the antebellum South.

The authors emphasize that their findings underscore the pivotal role of slavery in the economic development of the United States, asserting that the uncompensated labor of enslaved women, men, and children substantially contributed to the nation's economic expansion in the two decades leading up to the Civil War.

The End of U.S. Isolationism

In his Farewell Address, President George Washington advocated for the United States to refrain from involvement in European wars and politics. Throughout much of the nineteenth century, the expansive Atlantic and Pacific Oceans provided a form of "free security," allowing the nation to maintain a considerable detachment from conflicts in the Old World. However, during World War I, President Woodrow Wilson made a case for U.S. intervention in the conflict and emphasized America's interest in upholding a peaceful global order. Nonetheless, the American experience in the war only served to strengthen the arguments of isolationists. They argued that the limited U.S. interests in the conflict did not justify the significant number of American casualties.

The Monroe Doctrine, articulated by President James Monroe in 1823, exemplified American isolationism. It declared that the Old World and New World should maintain separate spheres of influence due to their fundamental differences.

In the 1930s, the Great Depression and the lingering memory of devastating losses in World War I influenced American public opinion and policy, steering them toward isolationism. Isolationists promoted a policy of non-involvement in European and Asian conflicts and urged the avoidance of entanglement in international politics. Despite striving to steer clear of political and military entanglements across distant oceans, the United States persisted in economic expansion and safeguarding its interests in Latin America. Leaders of the isolationist movement frequently invoked historical examples to reinforce their stance.

The US's entry into the Second World War marked the conclusion of its policy of isolationism. Throughout the conflict, the US participated in the Grand Alliance alongside Britain and the Soviet Union, coordinating wartime efforts and initiating plans for the post-war era.

Following the war's conclusion, the US played a key role in establishing the United Nations in 1945, becoming a founding member of the organization and abandoning its previous reluctance toward international cooperation. Policies like the Truman Doctrine (1947), which pledged US intervention to safeguard nations from communist takeover, and the Marshall Plan (1948), which provided aid to rebuild Europe after the war, underscored the US's significant role in post-Second World War international relations.

The onset of the Cold War became the predominant factor shaping US foreign policy in the subsequent years. Rather than isolationism, the foreign policy now centered on preventing the expansion of communism, a strategy known as US Containment.

After the Cold War, which the U.S. won with its allies, it officially became the strongest economic, political, and military superpower in the world. It has crafted a world order, that is still the dominant order in international relations, where it has orchestrated the economic development of the entire world.

Currently, the United States’ share of global gross domestic product adjusted for purchasing power parity is around 15%. For the full 2023 year, GDP growth is seen at around 2.5%, compared to 2.1% in 2022. We have seen new players such as China and India emerge on the global stage, Russia is also seeing rapid economic growth, despite the ongoing sanctions. Economic alliances have been forged, and BRICS countries want to base their currencies on their precious minerals and natural reserves, Saudi Arabia has started selling its oil in Yuan, so the real question remains, in what direction is the global economy headed? I will answer this and many other accompanying questions in the next post, so be sure to subscribe if you already haven’t, so that you don’t miss any new posts.