America’s prosperity was built on a global order it now undermines

By Dr. Manoj Kumar Mishra* 

The Trump administration’s policies to actualize its slogan “Make America Great Again” (MAGA) are ahistorical, reflecting a misreading of the foundations of American rise since World War II. The strength of the U.S. economy has largely depended on the global public goods it provided to other countries and the confidence it inspired in them to operate within a system of international liberal norms, financial institutions, and currency arrangements that ensured lucrative returns at home.

The U.S.-led international economic order established rules for trade, guaranteed secure navigation of air and sea routes, provided stability against economic uncertainties, and offered a reliable currency for transactions and savings. By championing liberal international trade, Washington maintained influence over the economic and security policies of other states through legitimate channels, avoiding excessive reliance on coercion. This order not only supported the growth of other economies but also helped integrate smaller markets with larger ones through trade and investment, minimizing risks of instability.

The sense of financial security the U.S. created made it the most attractive destination for trade and investment. Its security partnerships around the globe did not merely provide military protection but also integrated partners into the U.S. economy through the trade of weapons, energy, and industrial goods, while profiting from payments made for hosting American troops.

The U.S. economy thrived under this system. It profited from granting long-term loans, attracted massive foreign investment, benefited from widespread adoption of its technical and legal standards, and gained from other countries’ reliance on its financial system for global transactions and reserves.

The U.S. is Undermining the Order That Benefited It

The Trump administration’s attempts to dismantle this U.S.-led order risk harming not only America’s allies and partners but also the U.S. itself, while long-term rivals such as China and Russia may gain. Allies are particularly vulnerable because of their deep integration with U.S. supply chains, investments, and markets. Many have parked significant portions of their savings in U.S. treasuries, trusted in the competitiveness of exports to American markets, and relied on the security of U.S. financial assets.

By raising doubts about the stability of the U.S. financial system and slashing funds for foreign aid and development, the administration has added uncertainty to global markets. As partners and allies search for alternative sources of trade and investment, the dollar may gradually lose its privileged status, rendering foreign assets in the U.S. less secure.

China, with its economic resilience and ability to self-insure, appears well-positioned to provide alternative markets for America’s dissatisfied allies and partners. Despite U.S. tariffs, Washington remains dependent on China for critical minerals and rare-earth magnets, limiting how far the confrontation can escalate. Russia, having adapted to years of sanctions, has developed independent supply chains for its energy resources and may gain new partners as U.S. policies push its own allies across lines earlier administrations avoided crossing.

Unless Washington stops presenting selective financial statistics divorced from historical context, allies and partners will increasingly take steps to insure themselves against American unpredictability. The very order that secured American prosperity is now being weakened from within, and in the long run, it may be America itself that loses the most.

---

*Senior Lecturer in Political Science, SVM Autonomous College, Jagatsinghpur, Odisha