WORLD MUST PREPARE TO CONTAIN THE U.S. By Joseph E. Stiglitz

 https://x.com/NuryVittachi/status/2011258537599737934

@NuryVittachi

WORLD MUST PREPARE TO CONTAIN THE U.S.

By Joseph E. Stiglitz . MIGHT MAKES RIGHT, and nothing else matters. Moral questions – such as whether killing dozens of alleged drug smugglers without any pretense of due process – and the rule of law have been shunted aside, with barely a whimper from Republicans who once proudly touted American “values.” Many commentators have already addressed the implications for global peace and stability. If the US claims the Western Hemisphere as its sphere of influence (the “Donroe Doctrine”) and bars China from accessing Venezuelan oil, why shouldn’t China claim East Asia and bar the US from accessing Taiwanese chips? Doing so would not require it to “run” Taiwan, only to control its policies, particularly those allowing exports to the US. . CO-OPERATING AGAINST IMPERIALISM It is worth remembering that the great imperial power of the 19th century, the United Kingdom, did not fare well in the 20th. If most other countries cooperate in the face of this new American imperialism – as they should – the long-term prospects for the US could be even worse. After all, the UK at least tried to export salutary governing principles to its colonies, introducing some modicum of the rule of law and other “good” institutions. By contrast, Trumpian imperialism, lacking any coherent ideology, is openly unprincipled – an expression solely of greed and the will to power. It will attract the most avaricious and mendacious reprobates that American society can churn up. Such characters do not create wealth. They direct their energy to rent-seeking: plundering others through the exercise of market power, deception, or outright exploitation. Countries dominated by rent-seekers may produce a few wealthy individuals, but they do not end up prosperous. . LOSS OF RULE OF LAW Prosperity requires the rule of law. Without it, there is ever-present uncertainty. - Will the government seize my assets? - Will officials demand a bribe to overlook some minor peccadillo? - Will the economy be a level playing field, or will those in power always give the upper hand to their cronies? Lord Acton famously observed that, “Power corrupts, and absolute power corrupts absolutely.” But Trump has shown that one does not need absolute power to engage in unprecedented corruption. Once the system of checks and balances starts to fall apart – as indeed it has in the US – the powerful can operate with impunity. The costs will be borne by the rest of society, because corruption is always bad for the economy. . EUROPE, CHINA MUST DEVISE PLAN One hopes that we have reached “peak Trump,” that this dystopian era of kakistocracy will end with the 2026 and 2028 elections. But Europe, China, and the rest of the world cannot rely on hope alone. They should be devising contingency plans which recognize that the world does not need the US. What does America offer that the world cannot do without? - It is possible to imagine a world without the Silicon Valley giants, because the basic technologies they offer are now widely available. Others would rush in, and they may well establish much stronger safeguards. - It is also possible to imagine a world without US universities and scientific leadership, because Trump has already done his utmost to ensure that these institutions struggle to remain among the world’s best. - And it is possible to imagine a world where others no longer depend on the US market. Trade brings benefits, but less so if an imperial power seeks to grab a disproportionate share for itself. Filling the “demand gap” posed by the US's persistent trade deficits will be a lot easier for the rest of the world than the challenge facing the US of dealing with the supply side. . HEGEMON MUST BE OSTRACIZED A hegemon that abuses its power and bullies others must be left in its own corner. Resisting this new imperialism is essential for everyone else’s peace and prosperity. While the rest of the world should hope for the best, it must plan for the worst; and in planning for the worst, there may be no alternative to economic and social ostracism – no recourse but a policy of containment. . [Joseph E. Stiglitz won the Nobel Prize for Economics. This is an extract from an essay he published on 9 Jan 2026 in Project Syndicate - link to full text supplied.]

1:06 PM · Jan 14, 2026

·

1,093

Views

https://x.com/NuryVittachi/status/2011258537599737934