This implies that other nations must necessarily have a lower standard of living, while the US is importing their people. Few countries import graduate researc

This implies that other nations must necessarily have a lower standard of living, while the US is importing their people. Few countries import graduate researchers on the scale that the US does -- and China, notably, does not, even though it seems like a credible threat in your eyes. Something is wrong with the US if it can't foster domestic talent to an appropriate degree so as to remain competitive. In the long run, the US will not have a standard of living so much higher than that of other nations. A lot of that lead is a direct consequence of the outcome of the second world war, and a lot of the rest is due to inheriting British institutions -- the legal system, and broad respect for rule of law -- at a time when few of the governments around today were even formed.