THE VANISHING ‘SHINING CITY ON A HILL’

The ultimate metric for assessing progress, whether for a nation, corporation, or individual, lies in how outcomes align with the stated mission and objectives. For the United States, which has historically emphasized and promoted principles of liberty, freedom, justice, and equality as key pillars of the American dream, outcomes since the onset of the 20th century across social, economic, and political indicators suggest, at best, a stagnation of the country’s democratic capitalist framework, at worst, an impending systemic failure. Republican and Democratic party leaders, aided by a profit-driven media focused on a winner-loser, us-versus-them mentality, have provided the American public a limited view of the systemic issues that threaten the aspirations of the "Shining City on a Hill" and undermine America’s unique culture of innovation and entrepreneurship. This is happening amidst growing malaise and uncertainty against a backdrop of escalating risks, including a global economic landscape vulnerable to significant disruption from the rise of artificial intelligence, threats to the world trade order, and weakening long-standing post-World War II alliances. The U.S. liberal democratic system, as it has evolved and functioned, particularly since the dawn of the 21st century, has fallen short of its aspirations. This is evident in the challenges for the middle class, whose economic conditions and social well-being have deteriorated. Rising income and wealth inequality, along with a decline in the quality of education and healthcare, have led to discontent, apathy, and a decrease in public trust in the country’s key institutions. Once viewed as a beacon of democracy and a leader on the world stage, even if not always merited, America's standing has been undermined by several internal and external challenges. Political polarization, an inconsistent and ineffectual foreign policy, and the absence of a unified vision have diminished allies' trust and emboldened adversaries. Tim Geithner, former Treasury Secretary in the President Barack Obama administration (2009-2013), in his 2014 book – Stress Test: Reflections on Financial Crises, speaks of the importance of “safeguards that help reduce the likelihood and severity of crises”, including shock absorbers that allow for absorption of losses and damage, that are vital for mitigating severe impacts from a financial crisis. There is a glaring absence of safeguards and shock absorbers to protect the U.S. model of liberal democratic capitalism. The U.S. media has failed in its essential role to shield the American public from abuses of power and has been unable to help establish a reliable and independent framework to identify and address the risks that threaten core American democratic values. In recent decades, the U.S. political process has resembled a game of musical chairs, dictating congressional and presidential leadership roles. The latest (2024) round and its associated spoils belong to the Trump (aka Republican) Party, which proved effective by leveraging and exploiting the average American’s underlying disaffection and by demonizing the opposing side through hyperbole and a heavy dose of disinformation. The Democratic Party leadership, which has been complicit, has long been unwilling or unable to acknowledge the country’s systemic and structural flashpoints. The return of Donald J. Trump to the White House as the country’s 47th president is a sharp turn towards illiberal democracy . It marks the beginning of a new era of Darwinian capitalism, veiled under the pretense of restoring America’s dominance. This development will further undermine the country’s key institutions and principles, weaken and compromise its capitalist model, and subjugate the interests of America’s middle class. Trump’s implementation of the ‘America First’ agenda is accelerating the country’s decline, which has been underway since the mid-20th century. Republican leadership that once lauded respect for the rule of law and for the promotion of democracy abroad now stands idly by and watches the unraveling of American institutions that took more than 75 years to build. At a minimum, the new administration’s priorities and bullying, might-makes-right approach will deepen polarization among Americans and strain relationships with allies. This approach inevitably creates greater uncertainty and increases the risk of accidents throughout 2025 and beyond. In his influential 1835 work Democracy in America, the French aristocrat Alexis de Tocqueville analyzes the American democratic system, emphasizing its remarkable resilience and capacity for self-correction during times of adversity. De Tocqueville's insights stem from extensive observations of American society and governance made during his travels across the United States, as he aimed to understand the unique characteristics that distinguish American democracy from those of other nations. “The greatness of America lies not in being more enlightened than any other nation, but rather in her ability to repair her faults .” De Tocqueville's observation reflects his belief that the true strength of American democracy lies in its ability to recognize and address its shortcomings. Instead of claiming superiority in enlightenment or virtue over other nations, he highlights the significance of America’s adaptability and reform as core pillars of a successful democratic society. The shift toward an illiberal democracy can be reversed, and the rise of an authoritarian state is not inevitable. The actions of all Americans, whether through voting, legislation, the Judiciary, or especially the press, will shape the next chapter and determine if the U.S. can remain faithful to its founding principles.