So much for competitiveness

September 26, 2006

When it comes to the world’s most competitive economies, the United States leads the world. Or, at least we used to.

The US has lost its status as the world’s most competitive economy, according to the World Economic Forum.

The US now ranks only sixth in the body’s league table of global competitiveness, behind Switzerland, Finland, Sweden, Denmark and Singapore. Risks attached to the large US trade and fiscal deficits prompted its fall.

According to the BBC, countries were judged on “how conducive their business climates are to sustaining economic growth.” The World Economic Forum said stronger performing countries “were distinguished by their competent economic stewardship, investment in higher education and an emphasis on technological development and innovation.”

At which point the forum looked at Republican budget priorities and started laughing uproariously.

OK, perhaps not out loud, but the WEF did say conclude that the American business environment was being endangered by the “fragile state” of our public finances.

The US has seen its budget and trade deficits spiral in the past few years as a result of heavy government spending and rising trade imbalances with countries such as China and Japan.

The US trade deficit is expected to top last year’s record level of $717bn (£378bn; 565bn euros) in 2006, while the budget shortfall, although expected to be significantly lower than last year, is still forecast to be close to $300bn.

“US competitiveness is threatened by large macroeconomic imbalances, particularly rising levels of public indebtedness associated with repeated fiscal deficits,” the report said. “Its relative ranking remains vulnerable to a possible disorderly adjustment of such imbalances.”

As Kevin Drum put it, “Thanks, Republican Party!”

This need to be a part of every DEM campaign! Crappy news for the country, great example of how wrong the GOP is!

  • …vulnerable to a possible disorderly adjustment of such imbalances.

    At which point, we’ll be told “No one could have foreseen a disorderly adjustment of the imbalance.”

    Here’s the great thing about the economic model the GOP has been working so hard to restore: It was tried and failed. In my high school history classes, that failure was referred to as “the Great Depression.” Moreover, that model used to fail roughly once a generation. There were depressions in 1877, 1893, and a Bank Panic in 1907. The ‘adjustment’ that started in 1929 gets an adjective to distinguish it from the previous depressions.

    “Thanks, Republican Party” indeed.

  • Well, at least all the economies that beat us are pretty small. Maybe it’s just the first time they really compared us to other countries fairly?

    One thing I’ve concluded over time. Any businessman who feels he needs to ask the Republican’ts to give him government help to succeed is not a good source for economic advice.

  • Now the question is: How long will it take for Bush to declare war on Switzerland, Finland, Sweden, Denmark and Singapore?

    I don’t know about Singapore (or possibly Finland) but I seem to recall Scandinavian countries take much better care of their citizens all around, including labor laws that would reduce the CEO of the average US airline to a state of apoplexy.

    Hmmm, could it be that treating employees like people rather than equipment that gets thrown away when it doesn’t function as expected, is better for the economy?

  • Talk about loosing our competitive edge, we have lost the Ryder Cup ever since Bush took office. 1999 was the last time the Americans won and who was in the White House then?

    Stephen Dulaney

  • What is it about Afghanistan? The Soviet empire collapsed after their invasion and occupation, and the U.S. now looks to heading off the same cliff. Ill-advised wars that sap the national treasury and banrupt the economy have historically been the way that all empires collapse. Until now it had always happened to somebody else. American exceptionalism, meet American also-ranism.

  • Bill Arnett is a genius. At least banana republics have those nutritious potassium-laden bananas. We spend a zillion dollars on a counterproductive, pointless war and then Congress cuts back on student loans. Where’s the outrage?

  • no, no bubba – its their free market health care systems and willingness to leave their citizens uninsured to keep coprorations strong. That’s what gives them the edge.

    what’s that?
    nationalized health care?
    you don’t say.

    nevermind.

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