Great Investors Know America Is Alive and Well

“The reports of my death are greatly exaggerated.”

-Mark Twain

In last month’s article, we explored the mystery of “The Bear that Doesn’t Growl.” This month, in honor of the upcoming Independence Day holiday, we take a moment to marvel at the greatness of the American Economy.

The Rumors of Our Demise

As the popular legend goes, around the turn of the last Century, several newspapers in the United States mistakenly published an obituary for writer Mark Twain when he was still, in fact, alive. Twain decided to have a little fun with this interesting situation, so he sent a cable from London back to the press in the U.S., informing them that the reports of his death had been “greatly exaggerated.”

In a similar way, in recent years, the financial media has been filled with reports of the decline and death of the American Economy and predictions that we will soon be overtaken economically by the rest of the world. Just as the reports of Twain’s death, these reports are also “greatly exaggerated.”

The fact is that the U.S. economy is a remarkable, stupendous, world-beating success story. Over the last quarter century, during which it has become quite popular to bemoan our economic fortunes, the United States has surged ahead of the rest of the world by virtually every economic measure one can name.

The Persistent Myth of American Decline

We have no idea how or why this myth started, but we highly recommend this article, which appeared in the Economist magazine on April 13th, debunking this myth in far more detail than we could ever offer here. As the July 4th holiday approaches, it is worth a read to remind yourself just how lucky we all are to enjoy our share of American prosperity. Here is a short excerpt we found particularly interesting:

“On a whole range of measures, American dominance remains striking. And relative to its rich-wo