Issues In International Political Economy Has Us Lost Its Dominance

HAS US LOST ITS DOMINANCE
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HAS US LOST ITS DOMINANCE
Introduction
Several studies in the past have suggested that United States dominance in the world shall soon come to an end. The downfall of the United States supremacy has been associated with several issues. These issues include events that were experienced in the past as well as events that are projected for the future. One of the factors in the past that influenced the U.S. downfall was t military infiltration in Middle East countries. Weakening the policies that support military researches has also been projected to influence the downfall of U.S. dominance. The establishment of strict foreign policies, on the other hand, has also been linked to the derailment of the United States' downfall.
Other scholars have also blamed the policies of the current U.S. regime as a catalyst to the collapse of the United States of America's global dominance. This paper shall, therefore, analyze in detail the situation of education, economy, and the government's various policies against other fast-growing countries. This analysis will help in determining the status of the United States of America as far as its global dominance in the world is concerned. It will look in detail at the status of education in America, economic growth, America’s foreign policy as well as the vulnerability of America’s security. In general, the paper will try to determine whether the United States has lost its dominance.
SIGNS THAT U.S. HAS LOST ITS DOMINANCE
          The United States economy and military are currently the best in the world. These factors make it difficult for one to question the status of America’s global dominance. However, the United States' failure to take control over the Middle East and the rapid growth of China’s economy are some of the signs that indicate the end of U.S. dominance. Some of the signs that support the notion above include a radical drop in the U.S. economy, gradual loss of international influence, and the decline of education standards.
Economy
GDP Growth Rate
           Going by the economic books, it is evident that the United States is no longer the leading economy in terms of economic growth. With its current Gross Domestic Product (GDP) growth standing at 2.5% compared to China’s 6.1%, it is clear that the U.S. still boasts of a stronger economy. United States is, however, leading in the nominal GDP, with its nominal GDP standing at $22.336 trillion while that of China stands at $15.678 trillion. As can be seen in the graph below, U.S. nominal GDP is approximately 20% of the global economy. This is contrary to what the United States used to have in the global economy share in 1960. According to economic statistics, the United States used to control 60% of the worldwide economy (Focus Economics, 2019).
The sharp decline of the U.S. share in the global economy is a clear indication that the position of the United States as the world superpower is under threat. This acute reduction of the U.S. economy in the global share implies two critical things. The first implication is that there is likely to be a problem in the United States economic system. The other impact is that other nation’s economies seem to have improved, thus increasing their global economy share. This way the scramble for global economic share has continued to diminish. However, research has had it that various government policies have hugely influenced the U.S. global economy share (Pierce and Schott, 2016, p. 1642). 
Status of the U.S. Dollar as the Global Reserve Currency          
           Subsequently, the dollar also seems to be losing its status as the reserve currency. Currently, the state of the U.S. dollar as the reserve currency in the global central bank brings many benefits to Americans. For instance, just by printing the reserve currency, the U.S. benefit by having lower pricing on commodities manufactured within its borders from imported raw materials. Studies have shown that prices of products manufactured within America are 2 to 5 times cheaper courtesy of the dollar being the global reserve currency (Chinn, 2015, p. 158). This is because, unlike other countries, America enjoys the privilege of paying for the imported materials using their currency since it is the worldwide reserve money. This privilege can only be enjoyed by a country whose currency serves as the global reserve. Today, that country is the United States.
           Being the global reserve currency creates unlimited demand for the U.S. dollar in the foreign exchange market, thus making it the most dominant reserve currency in the world. Currently, the dollar constitutes 60% of the global reserve. Besides, studies have shown that 80% of international transactions are done using the U.S. dollar alone. According to Global Trends 2030, United States dominance as the world-leading economy has been boosted significantly by the role played by the U.S. dollar as the global reserve currency. This means that the U.S. economy is likely to suffer if the dollar loses its status as the global reserve currency. Research has projected that should the dollar be dethroned as a reserve currency, the U.S. will suffer the same fate as The British Empire did when sterling was dethroned (Chinn, 2015, p. 162).
           However, various issues suggest that the dislodging of the U.S. dollar as the global reserve currency is on the verge happening. One of these indicators is the rapid growth of economies like China. The rapid economic growth in China’s economy is likely to make China the most exceptional economy, thus influencing its currency to be used as a global reserve. Secondly, the history of the global reserve currency is another factor that indicates that the U.S. dollar is on the verge of losing its place as the global central currency (Eichengreen, B. and Flandreau, 2009, p. 400). Research has it that the average duration that previous reserve currencies have lasted is 95 years, as illustrated in the table below. Therefore, considering that the American dollar acted as the global reserve currency for close to 90 years, one is likely to conclude that its time in that position is long overdue. Finally, the fact that the prices of everyday goods have continued to rise compared to the 1950s is a clear indication that the global reserve currency has deteriorated in terms of value. 
Generally, it is convincible to argue that the decline experienced in the United States' GDP over the last 20 years does indicate a problem in the country's economy. The downward trend in U.S. GDP is, therefore, a clear indication that it is on the verge of being overtaken by countries like China whose economies are on the rise.
Education
Education theories towards economic performance
           In the contemporary world, food, clothing, and shelter are regarded as basic human needs. However, scholars think that education should be added to that list. This is because education is seen as an escape route from poverty through economic growth. Correlation between learning and economic growth is explained in three significant ways. The first model through which education is shown to be playing a vital role in facilitating economic growth is the basic human capital approach. The human capital has it that through education, the human workforce acquires improved skills and abilities, which in return lead to higher productivity as well as enabling the workforce to use the existing knowledge thus influencing economic growth (Pegkas, 2014, p. 39).
           The second approach that links education to economic growth is the innovation approach. Just as the name suggests, an innovation approach shows how education can be used to expand the existing knowledge and invent new ideas and technologies. With the innovation of new technologies, economic growth is inevitable. Finally, the knowledge transfer approach links education to economic growth from an understanding that through education, the innovations in terms of ideas and technology (Pegkas, 2014, p. 39). This way, education helps in expanding and building human capacity, which is essential for economic growth. Going by these three significant models linking education to economic growth, it is convincible to argue that quality and improved education is directly proportional to economic growth.
The decline in U.S. Education 
           United States education is still ranked as one of the best in the world. However, it faces several issues that are likely to derail it in the future. For instance, after World War II, United States Education was ranked first in the entire world, and that status was maintained for several decades. In addition, the country was also ranked first in maths and sciences. Unfortunately, this has not been the case in recent years where the U.S. has lost the first spot in the education ranking (Kinger, 2013). According to the world population review 2019, the U.S. currently lies second behind the U.K. in education ranking. Subsequently, the United States' performance in math and sciences has drastically dropped over the last few years. Instead, countries like Singapore, Hong Kong, Indonesia and China are recording higher scores in Math and Sciences as illustrated in the table below.
On the other hand, Council for non-partisan think tanks also noted that the youths aged between 25 to 34 are less educated compared to the elderly people whose ages lie between 55 to 64 (Kinger, 2013). Kinger (2013) also states that the majority of Americans with high school degrees are boomers between 55 to 64 years while the youth between is ranked third among individuals with college diplomas. In their findings, the Council of non-partisan indicates that the cost of education in learning institutions rose by 1000% between 1970 to 2007 and that America is the leading nation among the developed world in the dropout count. These statistics are contrary to other developed countries such as China, who have shown tremendous improvements as far as education is concerned.
           The downward education trend in America, therefore, suggests that the U.S. is the verge of losing its dominance in terms of innovation. For instance, judging by the number of young people pursuing a high school degree in the U.S. compared to China, it is evident that the latter does have more students. Also, the performance of math and science by Chinese students is way above U.S. standards. This situation, therefore, explains why China is projected to improve its innovations beyond America shortly when its current students develop into the smartest engineers and scientists. Studies have also shown that America experiences the most number of dropouts among the developed countries (Kinger, 2013). This argument indicates that among the developed countries, America is on the verge of being ranked last on literacy levels.
Foreign Policy
Neo-Liberalism versus Authoritarian Capitalism
Neo-Liberalism (United States Model)
           The establishment of good foreign policy is one of the critical issues towards achieving as stable and progressive economic development. This is because countries international relation is close to its foreign policy since this is what determines how other countries perceive it. Studies have shown that the existence of active foreign policy did play an essential role in helping the United States attain its status as the global superpower (Mudge, S.L., 2008). America played an important role in promoting democracy in various countries, especially in the developing world thanks to its liberal foreign policy. This is because,...