Wednesday, September 7, 2011

US FALLS TO 5TH PLACE IN GLOBAL COMPETITIVENESS

The United States has fallen further down the World Economic Forum's global ranking of the world's most competitive economies, landing at fifth place due to its out-of-control deficits, declining public faith in government and high unemployment.

Switzerland held onto the top spot for the third year in a row in the annual ranking, while Singapore moved up to second place, bumping Sweden down to third. Finland moved up to fourth place, from seventh last year. The United States was in fourth place last year, after falling from No. 1 in 2008.

COMMENT: The rankings, which the forum has issued for more than three decades, are based on economic data and a survey of 15,000 business executives. For the US to fall from first place to fifth since 2008 is not good news at all. To be recently downgraded by Standard & Poor's in terms of its credit rating was worse; however, the news this week that NO new jobs were created in the US in August was particularly disconcerting. Clearly these are all messages to the Obama Administration that different changes are warranted.

Perhaps the only solutions for the US economy include (1) Spending less than you take in; (2) Restricting the power of labor unions; (3) Renegotiating pension plans; (4) Placing a moratorium on environmental regulations; (5) Domestic oil production on land; (6) Easing corporate taxes; (7) Offering incentives for small businesses; (8) Reducing the size of the Federal work force; and (9) Through positive leadership, ending public sector bickering so that the American public can once again have confidence in its government.





No comments: