In recent years, I have often said to European friends: So, you didn’t like a world of too much American power? See how you like a world of too little American power  because it is coming to a geopolitical theater near you. Yes, America has gone from being the supreme victor of World War II, with guns and butter for all, to one of two superpowers during the cold war, to the indispensable nation after winning the cold war, to “The Frugal Superpower” of today. Get used to it. That’s our new nickname. American pacifists need not worry any more about “wars of choice.” We’re not doing that again. We can’t afford to invade Grenada today.

Ever since the onset of the Great Recession of 2008, it has been clear that the nature of being a leader  political or corporate  was changing in America. During most of the post-World War II era, being a leader meant, on balance, giving things away to people. Today, and for the next decade at least, being a leader in America will mean, on balance, taking things away from people.

And there is simply no way that America’s leaders, as they have to take more things away from their own voters, are not going to look to save money on foreign policy and foreign wars. Foreign and defense policy is a lagging indicator. A lot of other things get cut first. But the cuts are coming  you can already hear the warnings from Secretary of Defense Robert Gates. And a frugal American superpower is sure to have ripple effects around the globe.

“The Frugal Superpower: America’s Global Leadership in a Cash-Strapped Era” is actually the title of a very timely new book by my tutor and friend Michael Mandelbaum, the Johns Hopkins University foreign policy expert. “In 2008,” Mandelbaum notes, “all forms of government-supplied pensions and health care (including Medicaid) constituted about 4 percent of total American output.” At present rates, and with the baby boomers soon starting to draw on Social Security and Medicare, by 2050 “they will account for a full 18 percent of everything the United States produces.”