America's Downfall (part 3)

Forbes magazine's annual list of the world's richest people is eagerly anticipated as a barometer of wealth and power. And each year the mighty U.S., whose economy is often described as the envy of the world, has dominated the rankings.

Until now, that is.

In its most recent survey, the Forbes billionaire list changed dramatically: The United States made only four appearances in the top 20, compared with 10 names two years ago. India, by contrast, posted an astonishing four in the top 10, twice as many as the U.S. While America still leads the overall list, Russia, the new nation of raging capitalism, ranked second. Its 87 billionaires pushed aside Germany, the former runner-up. Is Wall Street's dominance over?

Many Americans are still rich, of course; many more are comfortably middle class. And the economy, though weak, is nowhere near collapse. But the shift in the billionaire allotment reflects broader trends. While globalization is indeed producing fabulous wealth in countries that were once considered basket cases, many are asking whether the U.S. is losing its competitive edge and surrendering its long-held leadership positions in business, finance and innovation to foreign competitors.

"The U.S. was always No. 1 and assumed it would be No. 1 and acted accordingly," says Doug Rediker, a former investment banker and a co-director of the Global Strategic Finance Initiative at the New America Foundation, a Washington, D.C., think tank. "Now other nations are catching up. There are competitors fighting for market share in every industry. The U.S. is under pressure."

Consider the sinking value of the dollar: The greenback is still the world's reserve currency, but its continuing erosion carries a symbolic value, telling the world that the U.S. doesn't have its financial house in order. At home, that means higher prices for food and fuel; it also means more-expensive vacations for Americans traveling abroad.

Talk Back: Do you think America is locked into decline?

The incredible shrinking dollar has also made America a great place for Europeans -- wielding their strong euros and pounds -- to go on cheap shopping sprees, swamping our department stores and designer boutiques to pick up bargains. The U.S., once an elite shopping destination, is becoming their giant outlet mall. Foreign tourists on shopping sprees

And what about Detroit's once-vaunted role as an auto industry leader? That has been diminished by more-nimble global competitors. Companies such as Japan's Toyota are threatening the once-indomitable General Motors with more-stylish design and advanced engineering. While GM was turning out gas-guzzling

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