The Most Important Book You Can Read on Today's Economy: "The War for Wealth"

The War for Wealth: The True Story of Globalization, or Why the Flat World is Broken
Gabor Steingart
McGraw-Hill Books
ISBN: 978-0-07-154596-9


I love books, and I seem to find a new one to like every week. And yet, I can honestly say, this is the best book I’ve read in years. Few books have the power to encapsulate the meteoric economic and political changes that face the United States--and the world--right now. Gabor Steingart, a German journalist working in Washington, DC,  for Der Spiegel, has managed to come at just the right time with just the right book, The War for Wealth.

What makes this book so pertinent? First, it approaches the question of whether globalization truly benefits all. Unlike those who favor the open market and make the assumption that free trade helps all, Steingart posits that globalization instead is leading to a redistribution of resources. Not all countries benefit equally. In this new world order, Americans are needed largely as consumers, not workers, who are financing their purchases on a mountain of debt.

The expansion of the labor market as a result of globalization, in fact, has led to a decline in the value of workers. This has hurt Western nations the most. In the US industrial base alone, there has been a 50 percent decline in jobs in a single generation. Americans and Europeans are overpriced for the global market, not because of their wages (although this is a factor) but largely because of the cost of their social safety net.

Who are the winners? Those in India and China, obviously. In China, those growth rates are even being understated by the Communist government so that the West does not even see the full extent of this unfettered development. Moreover, China has chosen a different, more insidious tactic in this economic war. As Steingart notes, “the Asians are attacking with economic weapons and avoiding ideological conflict. They do not conduct debates with the West over equality and justice, nor do they level any accusations or issue threats. The rising global powers are not interested in a battle of cultures. They are ignoring issues of religion and ideology. They are quiet adversaries who are placing their bets on economic efficiency. The West, they reason, can be defeated with its own weapons.”

Unlike many who see these problems and call for protectionist measures, Steingart is not a protectionist, nor does he see globalization as something to be halted in its steps. He is not a fear monger. As an economist and journalist, Steingart knows that this is a trend that is not likely to be reversed. It can, however, be managed by savvy leadership and a willingness on the part of Western nations to work together. Steingart basically lays out three options: global chaos (the shock scenario), the rise of Asia (the Asia-above-all scenario, in which American dreams bite the dust), or remaking history (the American Renaissance scenario).

How America and the West manage globalization, international trade, and the development of rules and regulations to even the playing field are critical to the continuance of the good life. If I could have one wish, it would be that both presidential candidates and their camps would read  Steingart’s book. This critical overview of the world and economic development today is something that every American should be thinking about as he or she approaches the future.