There’s a lot of confusion about the end of the American empire, and the fall of neoliberalism. Many people think the US will just be in “second place” and it’ll be OK.
No.
The problem is the nature of America’s decline. Since 1980 the US economy has been progressively financialized. Profits are all that matters, not what is done to make profits. In properly functioning markets the idea is that products fill a need, on net improve human welfare and lead to more growth of real products.
If a company doesn’t make a profit, that means it isn’t growing the real economy with products which are a net positive. In such a case it goes out of business.
This is approximately how the Chinese economy works. It’s how the US economy worked for much of its history. It’s how the British economy worked up till about 1890 or so.
It’s not how the US economy works.
You could say that the US economy is currently auto-catabolic. The more money that is made, the more the real economy is damaged. You see this most purely in Private Equity. They buy up companies, loot the company, load it up with the debt (including all the debt used to buy the company), then the company goes out of business. This is what happened ToysRUs, it is also, contrary to the current storyline, what happened to Blockbuster. The company was trying to pivot to online, but all profits were drained out by PE owners.
This happened to, literally, tens of of thousands of companies.
The sort of monopoly roll-ups which Matt Stoller so ably covers increase prices without increasing product quality. Health care price increases provide no utility (you can get a CT or MRI scan in China for under $100.) All of this damages the economy. Headline GDP goes up, but the actual strength of the economy decreases. I would estimate that fully half of US GDP is essentially “fake”, driven entirely by increased prices and fake profits. The US economy has been smaller than China’s, in real (not PPP adjusted, but “how much do we produce”) terms for at least ten years.
This process continues till there is no muscle left to consume.
The only possibility of the US avoiding the UK’s fate, despite being a continental power, is for the oligarchs to lose power and for there to be a huge compression of asset and service prices. This process will be extremely painful and is currently politically impossible, due to the control of the duopoly. Both parties are owned by oligarchs, the tech bros are rising and none of them have the least interest in creating a good economy when it’s so much more profitable to loot America.
Real innovation is moving to China and will increasingly do so. They are at least equal in pharma and will soon be ahead in biotech. Their markets prioritize increased production (which westerners complain about as “over-capacity.”) The Chinese government does not want high GDP numbers or high profits, they want increased human welfare and a more powerful state and country. So their markets are organized, well, as actually competitive markets, the most “free” in any major economy.
So Americans who are patting themselves on the back, figuring “well, how bad can it get? We’ll still be number 2” are underestimating how bad the economy is going to get. India is effectively a continental power too, and it punches way below its geographical weight.
This isn’t to say there is no hope for the US, but decline has a long way to go yet because reversing it requires the most powerful people in society to give up massive profits, and many of them, in the process, would lose their fortunes. Meanwhile many ordinary Americans are still doing “OK” if not great, and they don’t want radical (change from the roots) change either.
All of this is not a worse case scenario either, it’s the default—maybe even slightly optimistic. The worst case scenario involves some form of civil war, not like the War between the States, but low grade shit wafare that slowly drives a country into the dirt.
The bottom is not yet close.
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This is, again, because Chinese models are at least 90% cheaper to run, and mostly open source. Only a complete and utter moron would run their business using proprietary models where OpenAI or Anthropic can jack up the price any time they want or depreciate the model you actually needed. Even US startups agree, 70 to 80% of them are using Chinese open models.



Eleven percent of Americans use insulin to survive. They are dead within three months of the power going out.
Between 17 and 20% of Americans need weekly if not daily mental health medication. They are all either dead or reduced to needing constant care within three to six months. (Ian-probably an overstatement, many will be functional once they come off, but a non-tapered withdrawal from most ant-depressants or GABA drugs is ugly.)
Altogether, some 66% of Americans take some kind of life-saving or life-supporting medication daily. Let’s say that at least half of those are dead within one year of the lights going out. That’s 33% of the population.
During the Rwandan Genocide, about 75% of the Tutsi population was killed in merely 100 days. Like Rwanda and unlike Bosnia, there will be no one trying to stop it, no outside forces intervening. Imagine the Pseudo-Christian White Nationalists killing 75% of the “undesirables” they can get their hands on. Imagine many more of those American “undesirables” being able to fight back as they are being genocided (the Tutsis died en masse, not generally have the resources to fight back). It will quickly become tit-for-tat, with no mercy on either side, as the “undesirables” will no longer grant any mercy once they figure out what the Pseudo-Christian White Nationalists plan for them. So that’s about 75% of 40% of the remaining population.
Then there will further be a much more massive death all around due to the lack of medical supplies and services. Add in pestilence and plague, and that increases the number.
And about a year in, the survivors will have used up remaining food stocks. If they have been unable to start farming, on a traditional MINIMAL level of about 5 to 10 farmers per 1 non-farmer, there will be starvation.
So…
345,000,000 Americans to start…
less 33% or 113,850,000 from medical issues = 231,150,000
less 75% of 40% (69,345,000) from Genocide = 161,805,000
less ~10% from plague and pestilence (16,180,500) = 145,624,500
And less ~20% due to starvation (29,124,900) = 116,499,600.
My estimate is that there will be only about 116,000,000 Americans left within two years of the collapse and the start of ACWII. That’s a 66% death rate within two years. That’s a minimum, with my being generous on all the numbers.
Estimates based on an EMP attack that takes down the entire USA power grid have been a 90% death rate in merely one year. So I’m actually looking at things with rose-colored glasses…