World War I Changed Everything
The United States didn’t just stumble into superpower status – it earned it through the crucible of World War I. Before 1914, America was already an emerging industrial powerhouse, but the war transformed everything. While European nations bled themselves dry fighting on their own soil, America benefited enormously from selling weapons, food, and supplies to the warring parties. America has been the preeminent global power since 1945, though its relative power has diminished over these 80 years, it is still by far the most powerful country in the world today. When America finally entered the conflict in 1917, its fresh troops and industrial might tipped the balance decisively. This wasn’t just about winning a war – it was about proving that America could project power across oceans and reshape global politics. The Great War marked the first time America emerged as a true world player, setting the stage for decades of dominance that continues today.
The Dollar Becomes King
Nothing screams superpower quite like having your currency control the world economy. The U.S. dollar’s influence is widespread. Today, it involved in 85-90% of foreign currency exchange trades, accounting for 59% of foreign exchange reserves, and comprising around half of cross-border bank loans. This didn’t happen overnight – it was carefully orchestrated through the Bretton Woods system in 1944, where world leaders essentially agreed to make the dollar the global reserve currency. Think of it like being the house in a casino – you set the rules, and everyone else has to play by them. When other countries need to buy oil, conduct international trade, or store their wealth, they often do it in dollars. This gives America incredible leverage over global finance and allows it to fund its government and military through what economists call “exorbitant privilege.”
Economic Dominance That’s Hard to Ignore
In 2024, the United States had the largest economy in the world, with a gross domestic product of just under 29 trillion U.S. dollars. To put this in perspective, global gross domestic product amounts to almost 110 trillion U.S. dollars, with the United States making up more than one quarter of this figure alone. That’s like being the biggest fish in an ocean where you represent a quarter of all the water. China, despite its massive population and rapid growth, still trails significantly with around 18.5 trillion U.S. dollars in GDP. What makes this even more impressive is that America achieves this economic dominance with just 4% of the world’s population. This isn’t just about raw numbers – it’s about productivity, innovation, and the ability to create wealth at an unprecedented scale.
Military Spending That Dwarfs Everyone Else
When it comes to military might, America doesn’t just lead – it dominates in a way that’s almost comical. The United States maintained its position as the world’s dominant military spender at $997 billion, accounting for 37% of global expenditure. To put this absurd figure in context, the U.S. defense budget stood at nearly $1 trillion in 2024, equivalent to the next 12 largest countries combined. America continues to dominate global military expenditure, spending nearly $1 trillion or 3.4% of its GDP on defense in 2024. U.S. military expenditure makes up over one-third of the global total. This isn’t just about having more guns – it’s about being able to project power anywhere on Earth at a moment’s notice. The United States has the world’s most sophisticated (not to mention expensive) defense establishment, and is the only country that can conduct expeditionary operations at a moment’s notice on every continent.
Technology Leadership That Shapes the Future
America’s technological dominance isn’t just impressive – it’s practically a monopoly on the future. When it comes to the future growth of the global economy, technology innovation is key. Here, too, the United States excels. Across the digital spectrum – from software and artificial intelligence to chip design and quantum computing – the United States is the undisputed leader in the world. While other countries struggle to catch up, American companies like Apple, Google, Microsoft, and Amazon don’t just compete globally – they define what global competition looks like. This technological edge isn’t accidental; it’s the result of massive investments in research and development, world-class universities, and a culture that rewards innovation and risk-taking. When you control the technologies that power modern life, you essentially control how the world evolves.
Energy Independence Becomes a Game Changer
America’s transformation into an energy powerhouse has been nothing short of revolutionary. America is also a dominant energy player, producing more oil, gas, renewable, and nuclear energy than any other country on earth. The United States has also become a top energy exporter, including of oil and liquified natural gas. Its gas exports have quadrupled over the last ten years and doubled over the last five years. In 2023, it became the largest liquefied natural gas exporter in the world, surpassing Qatar and Australia for the first time. This energy independence is like having a superpower within a superpower – it means America doesn’t have to bow to oil-rich dictatorships or worry about energy supply disruptions. Instead, it can use energy exports as a diplomatic weapon and economic tool, while keeping its own economy powered by domestic resources.
Population Advantages That Others Lack
While China and India struggle with aging populations and demographic challenges, America has a secret weapon: favorable demographics. By total population, the U.S. recorded the highest number of international migrants in 2024 at 52.4 million. This isn’t just about numbers – it’s about attracting the world’s best and brightest talent. Unlike many other major powers, America continues to draw skilled immigrants who contribute to innovation, entrepreneurship, and economic growth. Think about it: while other countries worry about brain drain, America benefits from brain gain. These immigrants often become some of America’s most successful entrepreneurs and innovators, creating companies that employ millions and generate trillions in value. It’s like having a global talent recruitment system that never stops working.
Geographic Blessings That Enemies Can’t Match
America hit the geographic lottery in ways that would make other superpowers jealous. Protected by two massive oceans and bordered by friendly neighbors, America enjoys natural security that money can’t buy. This geographic advantage means America can project power globally without worrying much about homeland defense. While other major powers like Russia and China face hostile neighbors and contested borders, America’s geography allows it to focus outward rather than inward. The continental United States also boasts incredible natural resources – from fertile farmland to mineral deposits to navigable rivers that facilitate internal trade. It’s like playing a strategy game where you start with all the best advantages while your competitors begin surrounded by enemies.
Cultural Soft Power That Conquers Without Fighting
American culture doesn’t just influence the world – it shapes how billions of people think, dress, eat, and dream. Hollywood movies, American music, fast food chains, and social media platforms have created a form of soft power that’s more effective than any army. When people around the world learn English, they’re often learning American English. When they think of success and opportunity, they often think of the American Dream. This cultural dominance creates goodwill and influence that opens doors for American businesses, diplomats, and ideas. At the same time, the United Kingdom has fallen to third place for the first time since the pandemic, reflecting a period of stagnation in its nation brand perceptions. While there have been no sharp declines in scores or rankings, the lack of substantial improvement across key pillars highlights the need for revitalisation. Unlike military or economic power, soft power works by attraction rather than coercion, making people want to emulate America rather than fear it.
Alliance Networks That Multiply American Strength
America doesn’t just have allies – it has the most powerful alliance system in human history. NATO, ANZUS, bilateral defense treaties, and economic partnerships create what’s essentially a global American empire by invitation. Military spending by the USA rose by 5.7 per cent to reach $997 billion, which was 66 per cent of total NATO spending and 37 per cent of world military spending in 2024. European NATO members spent $454 billion in total, representing 30 per cent of total spending across the alliance. The 32 members of the world’s most powerful military alliance will spend $1.47 trillion this year. This isn’t just about shared defense – it’s about shared values, shared interests, and shared prosperity. When America acts, it often acts with a coalition of willing partners who bring their own resources and legitimacy to American initiatives. It’s like being the leader of the world’s most exclusive club, where membership comes with both privileges and responsibilities.
Innovation Economy That Reinvents Itself
What separates America from other powers isn’t just current success – it’s the ability to constantly reinvent itself and stay ahead of changing times. American companies don’t just adapt to technological change; they drive it. From the internet to social media to artificial intelligence, America has consistently been where the future begins. This innovation economy is supported by venture capital systems, research universities, and a culture that celebrates both success and failure as learning experiences. Overall, our modeling shows real GDP growth of 2.6% in 2025 and 2.1% in 2026. That, as well as breakthroughs in novel technologies like artificial intelligence, prompts a boost in investment, which results in a productivity boom. While other countries try to copy what America did yesterday, America is already working on what everyone will want tomorrow.
Financial System Control That Shapes Global Rules
America doesn’t just participate in the global financial system – it essentially controls it through institutions like the Federal Reserve, Wall Street banks, and international regulations that favor American interests. When the Fed changes interest rates, it affects economies worldwide. When American banks face problems, it becomes a global crisis. This financial dominance means America can impose economic sanctions that actually work, attract investment from around the world, and set the rules for international commerce. The EU exported $2.8 trillion—34% more than the U.S., which exported $2.1 trillion—while the U.S. imported $3.3 trillion, 25% more than the EU’s $2.6 trillion. This resulted in a $1.2 trillion trade deficit for the U.S., in contrast to the EU’s $160 billion surplus. Even with trade deficits, America benefits because other countries essentially lend it money to buy their products, creating a system where America consumes while others produce.
Challenges That Could Change Everything
The United States remains the most powerful country in the world. But its influence is waning, mostly because of its own actions. But its political influence has begun to wane. China has emerged as a major competitor for influence, especially in what is now called the Global South. And America has made some significant policy missteps, which have helped undermine the confidence of allies in its leadership and the fear of adversaries in its deterrent power Despite current dominance, America faces real challenges that could threaten its superpower status. It has also been argued that there is likely to be growing competition in future between two highly dominant countries, the United States and China, while others begin to lag behind economically. It has also been predicted that China may overtake the United States as the world’s largest economy in the 2020s. Political polarization, infrastructure decay, educational challenges, and growing inequality represent internal threats, while China’s rise and shifting global alliances pose external challenges.
America’s journey to global dominance wasn’t accidental – it was the result of geographic advantages, strategic decisions, cultural innovation, and sometimes just being in the right place at the right time. But staying on top requires constant adaptation and renewal. Still, the United States is a huge, profoundly wealthy, and remarkably powerful country that looks poised to remain at the top for the foreseeable future.
What surprises you most about how America built its superpower status?
