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Three Billion New Capitalists
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Three Billion New Capitalists

The Great Shift of Wealth and Power to the East

Clyde Prestowitz
Basic Books, 2005

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Editorial Rating

8

Qualities

  • Innovative

Recommendation

If you don't have enough to keep you awake worrying at night, this is the book for you. In forceful, lucid and convincing fashion, author Clyde Prestowitz, a Commerce Department trade official in the Reagan administration, outlines a nightmare scenario. The era of U.S. economic supremacy is long past. The future belongs to the East, notably India and China. Americans have lost their global manufacturing leadership to Japan and China. Until recently, it seemed that America would shift to service industries - but, in fact, it now seems as if India will dominate global services. Because of shortsighted political and business leaders, America has failed to perceive the inevitable. Many Americans still cannot or will not face the truth. A global economic system established on the foundation of U.S. consumption may not survive the shift of wealth and power to the East. The consequences of U.S. economic collapse will be profound and painful for the whole world - but unless something drastic is done (and it's not clear what), this collapse is all but inevitable. The one ray of hope is that this author has been nightmarishly, terrifyingly wrong before. He used to think Japan was going to seize the U.S. mantle, and he published a book about that threat. Japan is no longer much of a threat. Yet, if you seek a very persuasive, very pessimistic global perspective to help you stay informed, getAbstract.com recommends this economic crystal ball. Just don't expect to get any sleep.

Take-Aways

  • The U.S. has lived beyond its means for years; it will soon face the consequences.
  • The first wave of globalization saw global wealth and power shift to Europe, the second to the U.S., and the third - now underway - to China and India.
  • Post-WWII arrangements urged U.S. consumption to spur world economic recovery.

About the Author

Clyde Prestowitz was counselor to the Secretary of Commerce in the Reagan Administration. He is now President of the Economic Strategy Institute in Washington, D.C., and the author of Trading Places and Rogue Nations.

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