The American Empire is on its Last Legs: An Economic Assessment of the Fall of U.S. Imperialism
Ted Reese
Abstract
This paper presents a Marxist economic analysis arguing that U.S. imperialism is entering a terminal crisis rooted in long-term declines in profitability and the structural contradictions of capitalism. Drawing on the theoretical tradition of Henryk Grossman, it situates the current conjuncture within a recurring pattern of crisis, intensified by the exhaustion of neoliberal strategies that previously restored profitability through global labor exploitation, privatization, and financialization. The analysis highlights key indicators of systemic instability, including rising debt burdens, declining productivity growth, speculative asset bubbles, and the increasing divergence between financial markets and real economic activity. Particular attention is given to the weakening of the U.S. dollar’s global dominance, the growing reliance on monetary expansion, and the emergence of inflationary pressures signaled by surging commodity prices. The paper also examines the geopolitical dimension of decline, emphasizing the rise of China as a structurally distinct and more productive economic competitor. Ultimately, it argues that the convergence of financial fragility, overaccumulation, and geopolitical displacement signals not merely a cyclical downturn but a potential terminal crisis of capitalism, necessitating a renewed struggle for global socialism.
Keywords
U.S. Imperialism, Overaccumulation, Financialization, Crisis Theory, Global Capitalism
