The great debate on how to fix America’s economy and pay back its debt has begun. Most Americans assume that, in the end, all will be well. But they have failed to notice one missing dimension: in an global economic system in which Asia is increasingly central, their country is no longer a price-maker. It has slipped to become a mere price-taker instead.

There was a time when the great American economy could set its own course, and the rest of the world adjusted. Like an aircraft carrier, it felt no pressure to adapt when global currents changed. Today that is no longer true. The US economy can now become globally competitive only if it makes an effort to nderstand its relative competitiveness in the world.

Here job creation is the great challenge. But jobs can be created sustainably in the sectors where the US is globally competitive. Where they are not, the jobs will flow overseas. This fact means Americans must learn some hard truths.