Why Critics of U.S. Market Leadership Are Wrong

Shah Gilani|March 7, 2025

Since World War II, American exceptionalism has been the bedrock of our society and a cornerstone of global commerce and politics.

That’s rapidly changing, but not how you might expect.

You see, we held this belief that the U.S. possesses unique qualities that render it distinct from other nations. We were… well… better than everyone else. And we promoted those ideas.

People looked to the U.S. as the growth engine…

The technological leader…

The dominant player in financial markets.

In recent years, that view has been challenged.

America hasn’t decisively won a war since WWII, or since the Persian Gulf War in the early ‘90s at best.

We foisted democracy on nations only to be rebuffed and refused.

True, we saw the break of the Soviet Union and a more liberalized China. Yet, both seem to be sliding backward.

Unsurprisingly, the administration under President Donald Trump, and his Vice President J.D. Vance in particular, have openly questioned the trajectory, if not the expiration, of America’s exceptional run.

They’ve decided things need to change, and now.

And it’s upended both domestic and international economic and political policy.

America First

Trump’s “America First” doctrine aims to bolster American industries and preserve jobs.

It has also spurred international trade concerns and the role of the U.S. in global governance.

But what led to this “reevaluation” in the first place?

First, the relative rise of economies like China challenge the U.S. economic dominance.

Second, internal problems such as political polarization, aging infrastructure, and social inequality are testing the resilience of the U.S. economic model.

Moreover, Trump’s love for unpredictable policy announcements via social media has introduced a new layer of volatility in financial markets, leaving investors scrambling to adjust.

Yet, despite these challenges, America will continue to dominate the economic and market spheres.

For starters, U.S. technological innovation crushes everyone else.

It’s not just Silicon Valley but Boston, North Carolina, Texas, and more recently, South Florida. We’ve led with global advances in tech, digital economies, and capital markets.

U.S. financial markets remain the deepest and most liquid in the world.

As Mohamed El-Erian, Chief Economic Advisor at Allianz, noted, “The depth of markets and the role of the dollar are unmatched globally and are likely to remain so for a long time to come.”

This sentiment is on full display in U.S. stock markets, which have shown remarkable recovery and growth, even amid global uncertainties.

Our economic exceptionalism goes beyond the surface-level markets that we see. It’s embedded in our institutional framework.

The rule of law, intellectual property rights protections, and a blossoming entrepreneurial environment foster innovation and attract investment from around the world.

These elements not only cushion the U.S. economy against internal and external shocks but also propel it forward.

That’s not changing for the worse. It’s being sharpened by the Trump administration, albeit with a pumice stone.

The path for the U.S. will undoubtedly involve navigating significant challenges.

The global economic landscape is shifting.

Rising powers and changing dynamics demand we take a second look at the traditional economic paradigms.

Yet, the foundational strengths of the U.S. economy – its innovation, financial market depth, and robust institutional framework – provide it with the resilience to adapt and continue leading on the global stage.

While American Exceptionalism is being questioned, and President Trump’s policies and pronouncements inject plenty of uncertainty, the fundamental economic strengths of the United States remain. They support its exceptional role in the global economy.

As the world evolves, so too will the expression of this exceptionalism.