In a sense, the current Hamburg meeting of the world’s most important economic powers represents the end of the more than six decades of the Post-World War II Era.
In 1945, the second civil war among the European powers ended with the almost total devastation of Europe. Although the U.S., as a late arrival on the scene, suffered almost a half million deaths, its homeland remained isolated from the conflict.
Furthermore, the war effort had left behind an enormously new powerful industrial and managerial revolution.
It therefore seemed logical enough that not only would the U.S. participate in the rebuilding of Europe, but that it would assume a greater proportionate share of the burden.
That arrangement, in which the U.S. “inevitably” assumed a larger per capita role in any international undertaking has continued as the norm. That is despite the fact that the rebuilding of Europe with American production enhanced its already overwhelmingly leading worldwide economic role.
The Europeans – to a greater or lesser degree, notably Germany most of all, ironically one of the originators of the war and the major enemy.– profited from this assigned disproportional contribution. It became part and parcel of an international strategy of the American political Liberal Establishment – which profited from being its administrators, aided by the more conservative/corporatist business community which gained directly from its activity.
But left behind was the debris of the policy; not least was the growing erosion of the U.S.infrastructure which had not kept up nor pushed forward with the maximum new technology.. Also there was the burden – with whatever incidental profit to the economy and it was considerable – of a military defense force against the new threat to Western Europe of Soviet Communism and its international appurtenances.
The losers in this macroeconomic arrangement were the American constituency of lower middle income families and especially those which saw their more menial industrial jobs move abroad to lower wage countries. Their rebellion against their disadvantaged situation suddenly, unperceived initially by the political and bureaucratic establishments, brought the election of Donald K. Trump to the presidency. Trump, of course, was neither a rebel nor an innovator, but ipso facto he began to speak for what he himself labeled “the forgotten Americans”.
It was inevitable, perhaps, that this new domestic American scene was to be reflected on the international tableau. Rather suddenly it was recognized that there was nothing sacred about the rule of thumb which had assigned the U.S. a larger than proportionate cost in any international economic undertaking. The most dramatic, of course, was the American military expenditures [$600 billion in 2017] which maintained armed forces far larger than all the others in the world in order to defend a European constituency which as individuals for the most part did not bear its share of the load.
The expression of this new call for the U.S. 350 million gross national product, almost one quarter of the world’s total, is now being put forward by the Trump Administration in such international fora as the G20. To a world – and even part of the American public – that does not recognize the change of mood and its U.S. policy and strategic implications, it is seen in the Establishment circles – including the Mainsteam Media – as a reversal of all the chosen criteria for U.S. policy, and to an extent it is just that.
But the world – and the American Establishment – is going to have to live with a new U.S. strategy which claims “what is mine is mine”, not what is mine could be partly yours. The political manifestations could turn ugly.