The Popular Vote: Competitiveness in US not like it used to be
Michael Roberts
Issue date: 9/15/09 Section: Opinion
Last week the World Economic Forum released their Global Competitiveness Report. The United States, which had topped the list for the 2007-2008 report, dropped to No. 2 during the 2009-2010 cycle.
How did it come to this?
Government spending and government regulation are to blame.
In this report, the United States ranks 68th in government waste and 53rd in government regulation. To give this some perspective, China ranks 21st in government regulation and 35th in government waste. Here we see the first effects of the Bush administration bailouts that were continued and expanded with the Obama administration's further bailouts and the $787 billion stimulus package.
Government waste was an inevitable repercussion of the stimulus package. Government simply isn't as efficient as the private sector in just about any facet. For proof, try to find a government organization that works efficiently (with the exception of the Army). The major government organizations of inefficiency that come to mind are the National Postal Service and the Department of Motor Vehicles. That said, it's a no brainer to expect some sort of government waste when $787 billion is in question - basically the stimulus package is just a magnification of government inefficiency present already.
Government regulation has made its way into the mainstream political discussion recently through the bailouts, and the subsequent response by the government in the treatment of the companies that were bailed out.
For example, General Motors, which indeed is one of these said corporations, is being encouraged to take their car development in a specific direction - essentially toward more fuel-efficient cars (that also yield a lower profit margin, which might not be the best business decision).
If that's not enough, the Obama administration has decided that bailed out companies were going to be under the discretion of the government with regard to salaries and executive bonuses.
How did it come to this?
Government spending and government regulation are to blame.
In this report, the United States ranks 68th in government waste and 53rd in government regulation. To give this some perspective, China ranks 21st in government regulation and 35th in government waste. Here we see the first effects of the Bush administration bailouts that were continued and expanded with the Obama administration's further bailouts and the $787 billion stimulus package.
Government waste was an inevitable repercussion of the stimulus package. Government simply isn't as efficient as the private sector in just about any facet. For proof, try to find a government organization that works efficiently (with the exception of the Army). The major government organizations of inefficiency that come to mind are the National Postal Service and the Department of Motor Vehicles. That said, it's a no brainer to expect some sort of government waste when $787 billion is in question - basically the stimulus package is just a magnification of government inefficiency present already.
Government regulation has made its way into the mainstream political discussion recently through the bailouts, and the subsequent response by the government in the treatment of the companies that were bailed out.
For example, General Motors, which indeed is one of these said corporations, is being encouraged to take their car development in a specific direction - essentially toward more fuel-efficient cars (that also yield a lower profit margin, which might not be the best business decision).
If that's not enough, the Obama administration has decided that bailed out companies were going to be under the discretion of the government with regard to salaries and executive bonuses.
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