No, he’s not right. America’s military amounts to a few percentage points of GDP. Foreign policy isn’t about making friends, it’s about gaining allies. That requires concrete commitments, which involves ‘foreign entanglements’, and sometimes it involves making some people mad.
As a Canadian, let me tell you that being liked is all well and good - but it doesn’t translate into influence. And it doesn’t keep enemies from wanting to kill you. Canada is a very well respected country, and our people are generally well liked around the world. But the only time were have been relevant and actually been able to influence world events to our liking was when he was the military clout to back up our ideals, and the military clout to offer allies something of real value in exchange for their support.
America’s ‘problem’, if it has one other than the creeping entitlement mentality common to all western nations these days, is that it’s now facing competition. America was the big winner in the 20th century because America was militarily isolated, avoided the ravages of war, and discovered free markets and capitalism and absorbed it into its culture long before most other countries did. So while the Soviet Union and China and India and the rest of Asia and much of Europe frittered away the century with economically destructive forays into Communism, Socialism, and Fascism, America kept becoming more and more productive.
Then the world changed. The crises of the 1970’s caused reform movements to spring up around the world. Country after country started liberalizing and freeing markets, and world economic growth began to explode. South Korea, Singapore, India, and eventually China turned to market economies to deliver what central planning couldn’t. The Soviet Union fell.
It’s not that America fell back - it’s that everyone else caught up. So now there’s competition. Americans have to compete in a global economy. They aren’t sheltered by their own superiority any more. In some areas, America has continued to lead the world. In others, America has lost its competitive advantage.
But so long as the American government keeps propping up companies that should be allowed to die, keeps turning to protectionism as an answer to lack of competitiveness, and maintains and expands laws that make it hard for capital for form and for businesses to flourish and grow, America will have an increasingly hard time competing. Other countries are learning that low regulations and low taxes ultimately results in stronger economies, but America seems headed in the wrong direction.
If that trend continues, America will decline. But if it doesn’t, America still has all the advantages it had in the 20th century - lots of space, isolation from enemies, plenty of resources, and a large, educated population. There’s no reason it can’t continue to lead the world in prosperity and influence. The book on the 21st century hasn’t been written yet.