Last night kicked off to the Democratic National Convention, where many thought that the Castro brothers and Michelle Obama “hit it out of the park”. And, although there is a lot of excitement in North Carolina about renominating President Obama to another term, a new study is showing that the U.S. is less competitive in the world economy than we use to be. This isn’t welcome news for anyone in a position of power in this country, as their policies, their votes, and their endorsements have set the economic trajectory of this country. Those decisions are the reason why the U.S. is in the position it is.
Blame can certainly be spread across all parties, but ultimately, responsibility starts from the top down.
According to today’s CNBC Article:
The world’s largest economy, which was placed 5th last year, fell two positions to the 7th spot – marking its fourth year of decline.
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.
Political deadlock over reducing the unsustainable federal government budget deficit – projected to hit $1.1 trillion this year – prompted Standard & Poor’s to downgrade the country’s credit rating by one notch to AA+ from AAA last August.
Switzerland’s top spot was achieved as a result of its strong performance across the board, according to WEF, with notable labor market efficiency, sophistication of its business sector and its innovative capacity. The country has among the highest rates of patents per capita globally.
“Switzerland’s productivity is further enhanced by a business sector that offers excellent on-the-job-training opportunities and labor markets that balance employee protection with the interests of employers,” the report said.