America The Anti-Competitive
There’s an interesting policy paper out this month from The Cato Institute highlighting the extent to which America’s competitive position continues to deteriorate.
Written by Daniel Ikenson – who directs Cato’s trade policy center – the paper notes that our nation’s business climate “conspires to deter inward investment and to encourage companies to offshore operations that could otherwise be performed competitively in the United States.”
In other words America is becoming less hospitable to foreign investment – and less likely to see its own companies expand domestically.
Obviously, this is not a shock to anyone who has been paying attention. In the last twelve years America has plummeted from No. 2 to No. 18 on the economic freedom index. What did we honestly expect was going to happen?
But some of the numbers headlining Ikenson’s analysis are truly terrifying …
“While the U.S. claim to 17 percent of the world’s stock of foreign direct investment is impressive, the share stood at 39 percent as recently as 1999,” he writes. “It has been 12 years since the annual value of U.S. inward FDI set a record high of $314 billion, and since then, annual flows have failed to establish an upward trend. The most recent figures show a decline of 35 percent, from $227 billion in 2011 to $147 billion in 2012.”
Ouch … so much for “American exceptionalism.”
Ikenson’s report concludes with a sobering warning …
“The decisions we make now with respect to immigration, education, energy, trade, entitlements, taxes, and the role of government in managing the economy will determine the health, competitiveness, and relative significance of the U.S. economy in the decades ahead,” he writes.
Exactly … which is precisely why “Republicans” in the U.S. House need to stand fast on defunding President Barack Obama’s socialized medicine law (and grow a backbone on a whole host of other issues).
Anyway, to read Ikenson’s report in its entirety, click on the link below …