The Opinions The American Economy Isn’t as Bad as You Might Think
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Jul 8, 2026 
Dan Wang, a China and manufacturing expert, and Natasha Sarin, a Yale public finance scholar, discuss why the U.S. looks stronger than many think. They compare U.S., Chinese, and European strengths and weaknesses. They highlight U.S. tech leadership, immigration-driven dynamism, manufacturing and supply vulnerabilities, fiscal risks, and China’s visible yet fragile buildout.
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U.S. Tech And Immigration Power Productivity
- The U.S. concentrates world-leading AI labs, deep capital markets, and immigrant-driven entrepreneurship that fuel productivity and big tech successes like SpaceX.
- Natasha Sarin cites AI labs, SpaceX's IPO, and immigrant founders as concrete sources of U.S. dynamism and wealth creation.
Growing Deficits Raise Interest And Debt Service
- Large and rising federal deficits (around 6% of GDP now, heading toward 8–9%) risk crowding out private borrowing via higher interest rates and heavier debt service costs.
- Sarin warns printing money isn't a harmless fix because sustained deficits raise rates and increase the share of spending devoted to interest.
Shanghai Shows Comfort Amid Chinese Economic Malaise
- Dan Wang's recent trip to China found modern, livable cities like Shanghai with electrified fleets and better coffee, yet broad economic malaise persists.
- He describes a ‘serene discontent’ where daily life improved but youth unemployment, low fertility, and weak consumer confidence remain.