According to a new survey the US has lost ground again, falling from 5th last year to 7th in the world this year. The decline is the fourth consecutive one according to this survey. The chart below shows the last two year rankings:
THE GLOBAL COMPETITIVENESS INDEX 2012–2013
Source: World Economic Forum
Some reasons for the US deterioration were provided:
A lack of macroeconomic stability, the business community’s continued mistrust of the government and concerns over its fiscal health were some of the reasons for the downgrade, according to the annual survey.
“A number of weaknesses are chipping away at its competitiveness…the U.S. fiscal imbalances and continued political deadlock over resolving these challenges,” said Jennifer Blanke, Economist at the Geneva-based WEF.
The reasons cited all pertain to government making the economy less competitive. The result is a declining standard of living.
Government cannot improve this situation by stimulus or “investment spending.” Nor can the government create jobs. Government must cut spending and regulations and get the hell out of the way.
Government is not the solution; it is the problem.