Global Trade Made America Richer, Not Poorer
As we debated the merits of the Trump tariffs, many argued that global trade and the US deficit—Americans buying from foreigners—have made the US poorer.
Many quoted our $35 trillion government debt as evidence of American poverty driven by foreigners, outsourcing, and trading.
We think people are confused. American households, in aggregate, have a total wealth of ~ $170 trillion.
And, by the way, our 800+ billionaires account for ~$6 trillion, or 3.5% of our national wealth—not 90%, as some would have you believe.
For comparison:
- Japan, with about 40% of its population, has a total wealth of $27 trillion (16% of US wealth).
- South Korea, with one-seventh of our population, has just under $1 trillion in total wealth (0.6%).
- China, with 1.4 billion people—roughly four times the US population—has a national wealth of $84 trillion, or 50% of the United States.
In aggregate, the United States is the wealthiest country by a wide margin.
And on a per-person basis, one of the wealthiest still.
So please, do not think the United States has spent itself into poverty. Nor believe the rise in the wealth of the export-oriented Asian economies occurred at the detriment of US prosperity.
Global trading is not some weird zero-sum competition. Yes, there are losers and winners. But in aggregate, America is winning—and has won big.
The fact that we have poor, struggling people in the world’s richest country is a social problem, not a global trading problem.
Source: Voronoi, “Ranked: Highest GDP Per Capita in 2024,” October 4, 2024. https://www.voronoiapp.com/economy/Ranked-Highest-GDP-Per-Capita-in-2024-2605
Global Trade Made America Richer, Not Poorer
Global Trade Made America Richer, Not Poorer
As we debated the merits of the Trump tariffs, many argued that global trade and the US deficit—Americans buying from foreigners—have made the US poorer.
Many quoted our $35 trillion government debt as evidence of American poverty driven by foreigners, outsourcing, and trading.
We think people are confused. American households, in aggregate, have a total wealth of ~ $170 trillion.
For comparison:
In aggregate, the United States is the wealthiest country by a wide margin.
And on a per-person basis, one of the wealthiest still.
So please, do not think the United States has spent itself into poverty. Nor believe the rise in the wealth of the export-oriented Asian economies occurred at the detriment of US prosperity.
Global trading is not some weird zero-sum competition. Yes, there are losers and winners. But in aggregate, America is winning—and has won big.
The fact that we have poor, struggling people in the world’s richest country is a social problem, not a global trading problem.
Source: Voronoi, “Ranked: Highest GDP Per Capita in 2024,” October 4, 2024. https://www.voronoiapp.com/economy/Ranked-Highest-GDP-Per-Capita-in-2024-2605