Asia rising

The Economist notes that a new global benchmark has been set in “The New Titans”:

Last year the combined output of emerging economies reached an important milestone: it accounted for more than half of total world GDP (measured at purchasing-power parity). This means that the rich countries no longer dominate the global economy. The developing countries also have a far greater influence on the performance of the rich economies than is generally realised. Emerging economies are driving global growth and having a big impact on developed countries' inflation, interest rates, wages and profits. As these newcomers become more integrated into the global economy and their incomes catch up with the rich countries, they will provide the biggest boost to the world economy since the industrial revolution.

What does this mean for the United States economy? The answer is complex (read the article) but it’s fairly certain that the expanding Asian economies will put a squeeze on global capital and the labor market. However, in the larger scheme, there's more good news than bad.