America’s economy still leads the world at 250 years old: Merrill strategist

This Fourth of July marks the 250th anniversary of the founding of the U.S., and while Americans around the country are celebrating the occasion, it also serves as an opportunity to reflect on what helped make the U.S. the world’s largest economy and the reasons it’s still a great place to invest.

Joseph P. Quinlan, head of CIO market strategy for Merrill and Bank of America Private Bank, authored a piece breaking down the 10 reasons as to why the firm is bullish on the long-term prospects of investing in America.

Here’s a look at Quinlan’s 10 reasons to celebrate America on the nation’s 250th birthday.

The U.S. has the world’s largest economy and its deepest financial markets. (Michael Nagle/Bloomberg via Getty Images)

#1 Economic diversity and dynamism

“Think of our economy as a hydra-headed superpower, leading the world in such diverse activities as aerospace, agriculture, finance, energy, technology, healthcare, education and numerous other industries,” Quinlan said.

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He noted that while the U.S. has just over 4% of the world’s population, it accounts for about one-quarter of all global gross domestic product (GDP), with measures like economic output and per capita income far surpassing emerging countries like China and India.

“Never have so few people produced so much output, creating so much wealth,” Quinlan added.

America’s geography and natural resources have given it a unique advantage in the world economy. (iStock)

#2 Geographic superpower

The U.S. stands in contrast to many of history’s leading world powers by virtue of having friendly neighbors and vast oceans on its flanks, Quinlan said. He said that the U.S. is in “one of the most favorable geographic positions on Earth” and noted how the Great Plains, Mississippi River system and Great Lakes offer space for farming, waterways for commerce and reserves of freshwater that are unmatched around the world.

“At a time when water scarcity, food security, energy supplies and geopolitical tensions are increasingly important, America’s geographic advantages are becoming more valuable – not less,” he noted.

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#3 Startup culture

“America’s economic metabolism is different from the rest of the world. No country creates and destroys as manically as America,” Quinlan wrote, noting that since 2010, about 40% of the companies in the Fortune 500 list have either gone bankrupt, been acquired or ceased operations.

He cited Census Bureau data showing that nearly 6 million new businesses have been formed in the U.S. over the last 12 months – a record high and well above the average of the last decade – as evidence that the country’s “startup itch has only grown stronger in the past few years.”

Entrepreneurs like Elon Musk, the world’s wealthiest person, help spur innovation and growth in the U.S. economy. (Chesnot/Getty Images)

#4 Magnet for foreign investment

Quinlan noted that investors move their capital to where it’s treated the best, which shows that “global investors continue to favor the U.S.”

“At last count, the amount of foreign capital invested in the U.S. was around $50 trillion, according to the U.S. Department of Commerce. Bullish on America, the U.S. investment stakes of foreigners have increased nearly five-fold since the start of the century,” he wrote. “No country in the world has been at the receiving end of so much foreign capital this century.”

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#5 Brand haven

The global economy is spurred by intellectual property and brands, and Quinlan noted the U.S. is home to nine of the world’s top 10 global brands in 2026, according to BrandZ.

“These brands are more than commercial success; they are expressions of American soft power,” he wrote, saying they demonstrate how “American culture, technology and business extends far beyond its borders.”

The U.S. has the world’s most capable military. (Mike Segar/Reuters)

#6 Unmatched hard power

The U.S. military is the most capable in the world and serves as a critical backstop to America’s economic strength through deterrence and the ability to respond to aggression, while it also brings economic benefits amid the backdrop of geopolitical threats from countries like China and Russia.

“America’s defense leadership is not merely a strategic asset – it is also an important economic advantage, supporting innovation across aerospace, cybersecurity, AI and advanced manufacturing,” Quinlan wrote.

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#7 Tech leadership

The entrepreneurial culture of risk-taking in the U.S. has helped the country maintain its edge in tech innovation despite China’s economic rise, Quinlan said, adding that the market cap of firms like Nvidia, Google-parent Alphabet, and Apple are larger than many countries’ economic output.

“America is the largest market in the world for research and development spending and, in terms of AI, investment in AI in the U.S. is light years ahead of most of Europe and the rest of the world,” he said.

Nvidia CEO Jensen Huang, co-founder of the world’s most valuable company, was born to Taiwanese immigrants who brought him to the U.S. at a young age. (Akio Kon/Bloomberg via Getty Images)

#8 Academic excellence

Quinlan wrote that U.S. colleges and universities are among its greatest assets, with the Quacquarelli Symonds World University Rankings’ top 100 placing 26 in the U.S., including four of the top five and eight of the top 20.

“Many of the world’s most innovative companies were founded or co-founded by immigrants who first arrived in America as students. Talent follows opportunity, and opportunity still flows disproportionately toward the U.S.,” he noted.

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#9 Dollar dominance

“Predictions of the dollar’s demise have become a recurring feature of modern finance. Yet the greenback remains the world’s dominant reserve currency, the primary medium of global trade and finance, and the ultimate safe-haven during periods of crisis,” Quinlan wrote.

He added that the dominance of the dollar has given the U.S. what has historically been known as an “exorbitant privilege” that manifests itself in the ability to borrow, invest and transact that few nations can rival, and that, for the time being, “there remains no credible global substitute to the buck.”

The dollar is the world’s reserve currency. (Ozan Kose/AFP via Getty Images)

#10 Competitive drive

Economic competitiveness allows countries to adapt, innovate, bring in talent and drive growth – all categories that Quinlan said the U.S. is among the world leaders in, adding that the U.S. is “positioned to remain among the world’s most competitive economies.”

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“Summing it all up: At 250 years old, America remains the world’s leading economic, financial, technological and military power,” Quinlan wrote. “The entrepreneurial DNA of 1776 continues to run strong through our nation – think the willingness to take risks, challenge conventions, attract talent, and reinvest itself. That’s worth celebrating.”