USA - Hegemon

• Hegemon: supreme power or a country that is dominant over others. Their power extends to several different countries. The USA is the only country that can currently claim to be a hegemon.
• USA is the world's largest economy with a GDP of $20 trillion and is one of the world's five largest consumer markets.
• The dollar is considered the most powerful currency at the moment. Some nations have to borrow in US dollars as investors do not trust their currencies.

  • Turkey had problems in 2018 as they had lots of debts in dollars and their currency kept depreciating vs the US dollar thus they could not repay their debts.
• Most of the world's biggest companies are from the USA or China. apple, Microsoft, Amazon and Google are from America.
• The USA is very large and is the 3rd largest country in the world by area.
• USA is very rich in natural resources, specifically in steel and oil.
• Having a large country and large population size means that US companies have a very large domestic market. They can sell to lots of consumers and this can let these TNCs benefit from economies of scale.
• The USA was very rich in iron and steel which were very important in its development in the late 1800s.
• John D. Rockerfeller's Standard Oil was so powerful from 1870-1911 that it had to be broken up.
• Andrew Carnegie's Carnegie Steel Company had a huge amount of power in the steel industry.
• China is rivalling the USA's hegemony
• USA has a GDP of $21.4 trillion (2019)
• Capitalist and free-market economy and global TNCs
• Democracy with free elections held every 4 years
• Allies:

  • Western Europe through NATO
  • Strong economic and military ties to Japan and South Korea
• World's largest navy and most powerful air force with a 'ring' of bases surrounding the USSR
• Large nuclear arsenal and global network of nuclear bases
• Extensive global intelligence gathering through the CIA
• Film, radio, television and music industry proved a powerful vehicle for conveying a positive view of consumerism, family values, democracy and affluence to a global audience
• National debt (2020): $25.5 trillion but the US dollar's status as the global currency of choice makes it less vulnerable to economic shocks. USA has many large, innovative global TNCs, e.g Apple, Google, Facebook, and Cisco
• USA is ageing less fast than the EU and social costs (pensions, healthcare) tend to be borne by individuals rather than he government. Total population will keep growing from the 328 million in 2019 to 415 million in 2060
• Race relations is parts of the USA are strained and, at a national level, there is often political deadlock between Democrats and Republicans.
• USA is increasingly energy secure as a result of oil and gas fracking. Water insecurity is an increasing problem in the southwest.
• Health spending swallows 17% of USA's annual GDP and is a huge cost to families and government. 74% of adult Americans are overweight (30% are obese), adding significantly to healthcare costs.