Open immigration is not the answer, but the United States should not hold up the reform of skilled-immigration programs like the H-1B and L-1 visas because of the political logjam over how to stop the flow of illegal immigration.
Immigrants account for a majority of the net increase in the US workforce concentrated in the so-called STEM work (science, technology, engineering, and mathematics) since 1995. According to William R. Kerr at the Harvard Business School, immigration "provides the United States with a number of exceptional superstars for STEM work. Second, immigration acts through the sheer quantity of workers that it provides for STEM fields." Kerr believes that the "quantity aspect of high-skilled immigration is the stronger factor" in terms of impact.
Massachusetts has created a model based on public-private partnerships, a promising blueprint other states should follow.
In recent years, a number of U.S.-based corporations with significant international holdings have shifted their headquarters overseas in an attempt to lower their tax bills. Harvard Business School's Mihir Desai is an expert on tax policy, international finance, and corporate finance.
"While it is tempting to characterize corporate tax reform as a sop to big business, we know that the burden of the corporate tax is borne by shareholders, workers, or customers. And much of the available evidence points to the majority of the burden being borne by workers, a result that is intuitive when one compares the relative mobility of capital, labor, and products," Desai said.
Some tax experts testifying at Tuesday's hearing cautioned that narrow legislation could prove counterproductive even if it successfully deters some companies from reincorporating overseas. For instance, raising the threshold of a foreign company's ownership for inversions could prompt bigger foreign companies to get involved in the transactions. That could result in the U.S. portion of the company shifting more of its jobs overseas, including high-paying headquarters jobs, said Mihir Desai, finance professor at Harvard Business School.
Mihir A. Desai, a professor of law at Harvard University, said punitive legislation could be counterproductive.
"Legislation that is narrowly focused on preventing inversions or specific transactions runs the risk of being counterproductive," he said. "For example, rules that increase the required size of a foreign target to ensure the tax benefits of an inversion can deter these transactions but can also lead to more substantive transactions."
Mihir Desai, Harvard Business School professor, shares his thoughts on corporate tax reform ahead of Tuesday morning's Senate hearing.
Karen Mills, senior fellow at Harvard Business School, and Matthew Ferguson, Chief Executive Officer at CareerBuilder, talk with Erik Schatzker about the U.S. job market, the roles played by government and the business community in creating jobs, and the challenges for small business to find skilled labor to fill positions needed to grow their companies. They speak on Bloomberg Television's "Market Makers."
Released in May 2014, this report focuses on the current state of U.S. education and why this is a unique moment of opportunity for change.
The combination of higher wages in China and the U.S. energy boom is shrinking the manufacturing competitiveness gap between the world's two largest economies, according to a new study by the Boston Consulting Group.
Nearly $5 billion of proposed road, transit, and bicycling improvements across Massachusetts are at risk because Congress has failed to act at a time when the nation's main source of highway funding verges on insolvency.
State political leaders call a pair of approaching transportation deadlines — one to refill the highway trust fund by this summer and another to renew the national transportation program — a "looming crisis."
States and local governments stand to lose $46.8 billion in federal funding for transportation and transit projects next year if Congress doesn't put more money into the Highway Trust Fund and it slides into insolvency, according to a new report.
Rosabeth Kanter, a professor and part of the Harvard Business School's U.S. Competitiveness Project, a research-led effort to understand and improve the nation's competitiveness, ... said Congress needs to pass a bill to avoid "running out of money before they get all the potholes fixed."
Pfizer, the maker of best-selling drugs like Lipitor and Viagra and a symbol of business prowess in the United States for more than a century, no longer wants to be an American company.
On Monday, Pfizer proposed a $99 billion acquisition of its British rival AstraZeneca that would allow it to reincorporate in Britain. Doing so would allow Pfizer to escape the United States corporate tax rate and tap into a mountain of cash trapped overseas, saving it billions of dollars each year and making the company more competitive with other global drug makers.
Willy Shih is still worried. Five years ago, the Harvard Business School professor and his colleague Gary Pisano wrote that "restoring the ability of enterprises to develop and manufacture high-technology products in America ... is the only way the country can hope to pay down its enormous deficits and maintain, let alone raise, its citizens' standard of living."
But when IndustryWeek asked Shih to assign a grade to our nation's efforts to reverse the impact of decades of manufacturing offshoring and lost production capability, he answered, "C-."
America's infrastructure woes and how to fix them were front and center at the recent summit, America on the Move: Transportation and Infrastructure for the 21st Century, led by Rosabeth Moss Kanter.
With the United States negotiating major regional trade deals with both the Asia-Pacific and Europe, Congress may face choices in the coming months on international trade that could shape the U.S. economy for decades to come.
This week I had the pleasure of participating in Harvard Business School's "America on the Move Summit" alongside business leaders like Jeff Immelt from GE and Mary Barra from GM. Our event came right on the heels of the President's announcement that he will push for a "grand bargain on jobs" to pair $302 billion of investment in our transportation infrastructure with corporate tax reform. And, I spoke about why investing in America's infrastructure is important to small businesses. —Karen G. Mills, Senior Fellow, Harvard Business School
For decades, argues Harvard Business School's Rosabeth Moss Kanter, we have paid for our neglected infrastructure in lost productivity and jobs, but the full bill is coming due.
From the White House to New York City's new mayor, nothing is attracting more political attention these days than the idea of income inequality—that the rich are getting richer while the middle class and poor tread water, at best.
Few people I've ever heard are as informed or as eloquent on the subject as Harvard Business School's Jan Rivkin.
The US' shale gas and tight oil are already changing global energy markets and reducing both Europe's competitiveness vis-a-vis the US and China's overall manufacturing competitiveness.
Gov. Jon Huntsman talks with Harvard Business School Professor Michael Porter about the importance of competitiveness and growth in America, and the challenge that No Labels is undertaking to help maintain America as a competitive society.
The U.S. needs to open its doors more widely to world trade and embrace its own foreign-born residents to remain competitive in the global economy, U.S. Commerce Secretary Penny Pritzker said Friday.
There is a strong argument that it is a wise time to make a strategic investment in U.S. infrastructure by adding to the country's debt while interest rates remain extremely low.
Should the petition go forward, it could effectively block Chinese manufacturers from the American market.
Mandatory U.S. budget cuts known as sequestration are resulting in job losses across the country and threaten to undermine U.S. competitiveness in the global economy, industry executives and academics said on Monday, urging Congress to reverse the cuts.
As CEO of CKE Restaurants, I have firsthand knowledge of the vital role immigrants play in growing U.S. businesses, spurring innovation and creating jobs. Our broken immigration system hurts individual businesses, like ours, that create jobs and thrive on economic growth.
Rep. Scott Peters (D-CA) poses questions to the Honorable Gina McCarthy, Administrator of the Environmental Protection Agency, at the Full Committee hearing titled "Strengthening Transparency and Accountability within the Environmental Protection Agency."
Burgeoning regulations, policy incongruity, and lingering uncertainty about the business and political climates have reduced America's appeal.
Harvard Business School surveyed 10,000 of its graduates who live and conduct business around the world.
The Harvard study made clear that our current tax code puts American businesses at a competitive disadvantage on the world market. That should concern all of us.
There is an opportunity for Congress to stimulate job growth, spur economic activity, revive domestic manufacturing and assuage some of our security concerns. How? By passing legislation to ensure that U.S. mineral and metals resources are no longer overlooked.
In an interview with WSJ's David Wessel, Michael Porter from Harvard Business School talks about the challenges business in the U.S. is facing, including political gridlock in Washington and an ever-deepening skills shortage.
When it comes to the economy, one thing that most Americans can agree on is that we don't want policies that drive jobs out of the United States. Eliminating "accelerated depreciation" does just this.
Evercore Partners CEO Ralph Schlosstein discusses immigration with Tom Keene on Bloomberg Television's "Bloomberg Surveillance."
Thanks to state-sponsored cable/phone duopolies, U.S. broadband stays slow and expensive -- and will probably impede cloud adoption
Replacing corporate tax revenues with consumption tax revenues is the most straightforward way to improve America's tax competitiveness. Everything else is just nibbling around the edges.
The ubiquitous government surveillance harms more than just our personal privacy, and American businesses need to pay particular attention.
Harvard Business School's U.S. Competitiveness Project co-chairs Michael E. Porter and Jan W. Rivkin meet with political leaders in Washington, D.C. to share HBS research and propose policy measures for improving America's competitiveness.
Dante A. Disparte, president of the Harvard Business School Alumni Club, Washington D.C., calls upon the local alumni network and the business community at large to make a difference in the nation's capital.
While other countries have modernized their international tax systems, the United States remains mired in the past. The U.S. tax system isn't working for American businesses, workers or the economy as a whole.
Harvard Business School did a survey last year asking 10,000 of its graduates who live and conduct business around the world about the challenges of doing business in America. These individuals are leaders on the front lines of the global economy, and they are pessimistic about America's economic future.
The vast majority of those surveyed, 71 percent, expected U.S. competitiveness to deteriorate over the next several years. And what did they identify as the root of America's competitiveness problem? Respondents pointed to America's tax code as one of the greatest weaknesses in the U.S. business environment.
Harvard Business School Professor Michael Porter offers insights on how to strengthen America's competitiveness before the Committee on Small Business Subcommittee on Economic Growth, Tax and Capital Access.
As the United States and the European Union continue talks this week to potentially hammer out a free-trade agreement, experts are divided on what effect the agreement could have on small-business exporters in the United States.
HBS Experts will meet with D.C. leaders to discuss areas of agreement around the actionable steps that can be taken to address America's structural competitiveness
Harvard Business School Dean Nitin Nohria appeared on CNBC's "Squawk Box" to discuss what the United States needs to assure economic competitiveness on a global scale.
After much misguided hand-wringing about "American decline," Congress has a chance to do something to strengthen the United States at home and abroad.
The United States needs a modern tax code that unleashes the power of America's economy to create jobs, increase growth, encourage businesses to invest in the U.S., and let American companies large and small compete in today's global economy.
The United States is losing its competitiveness in the world economy. Sadly, instead of leading the innovation charge in the twenty-first century, we are becoming victims of policies that restrict our entrepreneurial roots.
Rebuilding roads, bridges and points of commerce would help lower unemployment levels, improve commercial operations and strengthen the U.S. economy over the long term.
Prospects for a new trade agreement with the European Union are being threatened by measures that would boost capital requirements for the biggest banks, a group representing U.S. chief executive officers said in a letter.
Now that financial markets have recovered and business efficiency and profitability have revived, the U.S. has regained its dominant position, according to IMD.
Harvard Business School's Mihir A. Desai, answers a few questions about the recent Congressional tax inquiry of Apple and how this investigation fits into a larger debate about the corporate tax code.
The U.S. Chamber Institute for Legal Reform suggests that civil justice reform would play an important role in increasing the global competitiveness of American businesses.
It is time for CEOs to stand up and say "yes, my company moves jobs to other nations and we will continue to do so until Congress puts in place a real national competitiveness strategy."
At an event at Harvard Business School that was three parts analysis and one part rally, participants tried to chart a new path forward for the sluggish U.S. economy — a move that may require a new definition of "competitiveness."
Business leaders expect the nation's competitiveness to deteriorate, with companies less able to compete globally, pay workers well, or both, according to a new report released by Harvard Business School.
Some experts fear the United States is falling behind other developed nations in broadband adoption and performance, but others say such concerns are often exaggerated and unsupported by analysis.
The US is becoming less competitive partly because it refuses to address mounting debt problems. Federal policymakers in Washington DC have to make some tough choices to put the nation's finances in order and improve economic prospects.
America's public infrastructure — roads, bridges, airports, seaports, waterways and even sidewalks — is a mess. You can see it for yourself every day. It's not just a nuisance; it's bad for our economy.
President Barack Obama knocked Congress's Republican leadership on Monday for neglecting infrastructure, noting that not one U.S. airport cracked the top 25 on a list of the world's best.
China remained the United States' third-biggest export destination, behind Canada and Mexico, in 2012, having purchased nearly $109 billion US goods, according to a report by the US-China Business Council.
Reforming our international tax system should include modern tax laws to provide a level playing field for American workers; permanent simplification of the tax code; a lower corporate tax rate to increase competitiveness; and provisions to protect the U.S. tax base and prevent abuse.
The United States has been using fiscal and monetary solutions as a base for its economic growth policy. But these macroeconomic strategies by itself are not leading to long-term growth. If we want to create more jobs, increase per capita income and reduce poverty, we need a shift in focus towards regions as the drivers of the national economy.
Current policy measures will accomplish only the bare minimum to improve U.S. competitiveness in the global information economy. According to recent FCC data, gigabit broadband connections are available in only about 40 communities across 15 states.
The US has an international tax system that puts American companies and workers at a disadvantage as they try to compete in a new world.
Political skirmishes and impasses around short-term events are distracting us from the real danger ahead: Our reckless fiscal trajectory that threatens America's competitiveness. Insights by David Walker and Robert Kaplan.
For innovation, entrepreneurship, and startups, the U.S. continues to be unparalleled. But in spreading economic benefits broadly throughout the economy, we have not done well the last 30 years.
Regulation, innovation, infrastructure, education: each of these is crucial to competitiveness. Put together the small things happening in the states, and they become something rather big. That is the essence of the America that works.
The U.S. economy will be between 1.5 and 2.6 percent smaller over the long-term because other nations' corporate tax rates are considerably more competitive, according to a new study by Ernst & Young and the RATE Coalition, a group lobbying for lower corporate tax rates.
A recent government briefing on the H-1B visa program offered facts and perspectives that are usually ignored or overlooked by the media; including from CEOs who use the program.
Political gridlock may be bad for America's economy, says Edward McBride, but the underlying growth prospects are much brighter than they seem.
Concerned about long-term structural issues such as the educational system, the tax code, and partisan politics, business leaders are continuing to voice pessimism about the state and direction of U.S.competitiveness, according to a new survey by the Harvard Business School (
Jan Rivkin, professor and chair of the Strategy Unit at Harvard Business School, discusses the structural issues facing the United States and as a result, the multiple short term crises. He speaks on Bloomberg Television's "Market Makers."
Michael Porter, University professor at Harvard, talks to Charlie Rose about the United States in the global economy.
Executives at Toyota Motor Corp., Honda Motor Co. and Ford Motor Co. will tell a U.S. House panel Wednesday that the United States should do more to attract qualified workers to the auto industry.
United Kingdom Prime Minister Cameron's potential reform package is one of several steps being taken to increase competitiveness on the continent. The United States should learn a lesson.
The electrical blackout at the Super Bowl wasn't about New Orleans. It speaks more to the pressing challenge of ensuring our infrastructure is capable of enabling America to be competitive in a global economy.
Do you think that companies owe anything to the place they came from? Or is the notion of "home" now largely irrelevant for the corporate world?
The lack of a long-term national energy policy is putting the US at risk of falling behind in the global clean energy market both in terms of innovation and competitiveness, concludes a report by Pew Charitable Trusts.
President Barack Obama will let his Council on Jobs and Competitivess expire this week without renewing its charter, winding down one source of input from the business community even as unemployment remains stubbornly high.
Of the dozen or so Cabinet officials who are either confirmed or awaiting confirmation, none comes from a job running or helping run a business.
Harvard Business School Professors Michael Porter and Jan Rivkin lay out policy steps for the president and Congress to follow in order to make American companies more competitive and their employees more prosperous.
What should be the key focus of the new Obama administration? Suzanne Rosselet suggests that investing in skills and education are the critical contributors to lifting US competitiveness.
Our ability to compete in a global economy, attract the world's brightest workers and nurture a functional political system is slipping. This weakness is now at a point where it threatens to erode the pillars upon which America's national security rests. America's competitiveness is now a matter of national security.
Maryland's newest congressman says restoring U.S. competitiveness is his top priority as he takes office, the Associated Press reports.
As ugly as they were, the "fiscal cliff" negotiations produced something Washington hadn't seen in a long time: strongly bipartisan votes in the House and the Senate on a big, contentious issue.
Until recently, the debate about tax reform has focused mostly on the corporate side and mostly on the international side, but in the negotiations about the fiscal cliff, the debate has moved into a discussion about individual taxation.
Two Harvard Business School professors warn a group of incoming congressional freshmen that it would be a mistake to separate concerns about the economy from the broader and increasingly urgent problem of America's waning competitiveness in the global world of business.
The Puget Sound region, for all its strengths, is only a few Chinese leaps in software, airplanes and biotechnology from becoming Akron, Ohio, with ferries, columnist Jon Talton says.
Does the United States benefit from having a strategic competitor? We share the common assessment that the U.S.-China relationship will be the most important geopolitical relationship this century. But is this competition from China merely a threat, or also potentially an opportunity for the U.S.? We think it can be the latter.
A free-trade agreement between the United States and Europe, elusive for more than a decade but with a potentially huge economic effect, is gaining momentum and may finally be attainable, business and political leaders say.
Analysts at AllianceBernstein doubt that solar will ever become cheap enough to compete without subsidies â" and they cite Germany as an example.
American competitiveness is at risk as the burden of the national debt continues to take its toll on the economy, say Jason J. Fichtner and Jakina R. Debnam of the Mercatus Center.
Harvard Business School Professor Michael E. Porter on US competitiveness and the "fiscal cliff."
Video Samuel R. Allen, chief executive officer for Deere & Co., James Hagedorn, CEO for Scotts Miracle-Gro Co., Keith D. Nosbusch, CEO for Rockwell Automation Inc., Michael E. Porter, professor at Harvard Business School, and Edward M. Smith, CEO for Ullico, Inc., talk about U.S. productivity and economic growth outlook. They speak at the National Competitiveness Forum in Washington. Bloomberg's Al Hunt moderates.
It's time for business to lead in restoring American competitiveness, rather than waiting for Washington to act, write Harvard Business School professors Michael Porter and Jan Rivkin.
The rebound of Detroit's Big Three automakers is a real-world success story, but professors from Harvard Business School think Motown's comeback deserves a place in the classroom, too.
For the first time in our lives, the promise of upward mobility -- the core of the American Dream -- can no longer be taken for granted. The top priority for President Obama is to enact policies that support job growth and reduce worker anxieties.
As President Obama mulls over the appointments for his second term cabinet, there's one job that deserves a much higher priority than it's had in the recent past: the Commerce Secretary.
Turning around the U.S. economy, and by extension the 50 state and thousands of local economies, will require a robust national innovation and competitiveness strategy focused on what we call the four "T's": corporate Tax reduction and reform; increased public investment in Technology and Talent, and much tougher Trade enforcement.
Next week, a coalition of business leaders will press a longer-term to-do list on Washington's politicians. Its 200 items include cutting corporate taxes, streamlining regulations, upgrading the nation's crumbling infrastructure and creating a more highly skilled workforce.
To better understand what actually works to get the economy moving again, the administration should look at the nation's most successful cities and metro areas.
Harvard Business School Professor Rosabeth Moss Kanter joins Bhaskar Chakravorti, senior associate dean at the Fletcher School at Tufts University, to discuss what role government has in fostering innovation.
Former White House economic advisor Larry Summers warned Thursday that a failure to address the fiscal cliff would make things worse as the U.S. economy now is at "critical juncture", but tackling the fiscal challenge needs long-term vision on growth.
The United States hit China with tariffs as high as 250 percent on Wednesday for selling solar cells below fair value, while also imposing a separate 16 percent tariff to counteract Chinese subsidies to its solar firms.
China's leading telecom equipment makers accused in a U.S. congressional report of being a potential security risk may face fresh scrutiny in other markets, while American firms operating in China could be vulnerable to retaliation.
The U.S. Supreme Court has until Friday to determine whether it will hear an appeal involving a class-action lawsuit against Whirlpool, the nation's largest washing machine manufacturer. Until then, the future of all manufacturing in the United States hangs in the balance.
Harvard Business School's U.S. Competitiveness Project aims to engage local leaders, find paths to prosperity
Harvard Business School Dean Nitin Nohria and Professor Michael Porter discuss America's declining competitiveness and possible solutions. Their appearance begins at about the 1:20 mark.
A Senate hearing this week demonstrated yet again why it's time to modernize U.S. tax rules so companies can compete around the world and in the process create jobs back home in the United States.
The US is on course to regain its status as a global industrial powerhouse, in spite of indications in recent months that the recovery is running out of steam, says a study published on Friday.
Many so-called experts have mocked the Obama Administration's latest trade action against China as being fundamentally useless, the economic equivalent of spitting into the wind. After all, factory job seem like a relic of the past. Yet by our calculations, the U.S. could regain 4 million jobs in manufacturing at relatively low cost--if we follow the right policies.
We must rebuild the American economic engine--which is the one-third of the U.S. economy that competes in global markets and that shrinks if it loses that competition.
Some nations are better at attracting businesses than others, and as the global economy continues to struggle, getting more companies to invest in a nation has become a necessity for maintaining financial strength. Where does the U.S. fall in the worldwide rankings, and how can we improve?
Speakers at the forum included former Secretary of State Madeleine Albright; Harvard Business School Professor Michael Porter; and Aspen Institute CEO Walter Isaacson. Former presidential advisor David Gergen moderated the event.
The slight 0.25 percent increase in the overall U.S. trade deficit in July concealed big deficit increases in categories critical to restoring American prosperity and preserving global economic leadership--manufacturing and high tech products.
Policymakers last overhauled the corporate tax system 26 years ago. The economy, international trade and technology have changed drastically since then.
The causes of this country's declining competitiveness is discouragingly long: crumbling infrastructure, inadequate educational performance, stifling regulation and a cumbersome tax system. But it might not take that much to tip the scales in favor of the United States.
Nearly every member of Congress has blocked steps that would help their constituents prosper. The answer? Sol Erdman and Lawrence Susskind discuss advocacy plans for the Center for Collaborative Democracy.
The Chinese economy on Friday showed worrisome signs of slowing down, a development that not only threatens global economic growth but also may complicate the relationship between China and the United States.
While China is busy raising skyscrapers, America seems content to raise only objections. The United States can never be truly independent without the power to compete.
Harvard's Michael Porter and the Washington Post's Eugene Robinson join Morning Joe to discuss job creation in the U.S. and how to keep the country competitive. Some of Porter's suggestions include simplifying the tax code and creating a sustainable federal budget. "The solutions are not difficult--it's political will," says Porter.
A key Senate committee will hold a hearing this week about the competitiveness of U.S. airlines in the international aviation industry.
The most glaring weakness in the current recovery relative to previous ones is the unprecedented public-sector job loss seen over the last three years.
Bipartisan bills have been introduced in both the Senate and the House of Representatives to continue the expansion of United States trade with sub-Saharan Africa and Central America, by means of extending and changing key provisions of the African Growth and Opportunity Act and the Dominican Republic-Central America-US free trade agreement.
Conference Board Chief Economist Bart van Ark analyzes how mature economies can achieve even stronger competitiveness.
Leaders from the U.S. Senate, Small Business Administration, media, business and labor will join HBS in an interactive discussion about areas of agreement around the actionable steps that can be taken to address America's structural competitiveness challenges
Pushing the limits of an aging infrastructure, U.S. manufacturers face a future of increasing costs and instability unless new technologies and new investments can rejuvinate the system.
Today, as we face a sluggish economic recovery and persistently high unemployment, immigrants can strengthen our efforts to grow the economy, create jobs and keep America competitive. But to truly leverage the talent, energy, ideas and hard work of immigrants, we must adopt rational reforms to our immigration system. What's at stake if we don't? Innovation, growth and jobs.
Congress has a once-in-a-generation opportunity to rewrite the U.S. Tax Code to promote job growth and reduce the federal budget deficit, said Senate Finance Committee Chairman Max Baucus.
Congress is asking whether sensitive patent applications should be kept under wraps to protect them from economic espionage, a question that implies curbing the ability of inventors to promote their ideas globally.
The current state of U.S. competitiveness is not the problem, but rather, a symptom of a larger systemic one, says Andrew McKeon, founder of business-climate.com. Fixing U.S. competitiveness will require a systems perspective much broader and more holistic than American management has practiced in the last 40 years.
Everywhere you look around the world we see investments in the future which recognize what the 21st Century will look like, says former Intel CEO Craig Barrett. Isn't it about time we did the same? Instead of cutting back our funding for education and research, shouldn't we be doing the opposite?
U.S. Transportation Secretary Ray LaHood announced $9.98 million in grants to 15 small shipyards throughout the United States to pay for modernizations which will increase productivity and help the country's small shipyards compete in the global marketplace.
The U.S. government needs to repeal or at least heavily modify the law limiting the export of space technologies because it is hurting national competitiveness in space, a lawmaker contends.
The United States government should ease the tax and regulatory burden on the the nation's aviation industry to improve the sector's competitiveness and boost the economy as a whole, the International Air Transport Association says.
Business leaders interested in American productivity already have plenty of good ideas for increasing it. But the first thing they should do is get involved in good old-fashioned electoral politics to boost the number of moderates in Congress.
As we celebrate the success of the National Export Initiative and its positive impact on our economy, we must also commit to ensuring that its momentum continues. Providing more opportunities and support for U.S. companies to export their goods and services makes good economic sense--and American workers deserve nothing less.
President Obama's proposed tax cut on manufacurers, although significant, may be too small, as it would leave the rate in the United States above the rates of many developed and emerging-market countries competing for the investments of American companies.
Michael Porter is right: To progress, the US needs to shed two shibboleths of the Republican primary. One is that government must simply "get out of the way" in order for businesses to thrive and jobs to be created; the second is that free markets inherently produce good social results.
We should take a look at the most dynamic parts of today's global economy—the so-called emerging markets—while thinking about how to shore up American competitiveness.
Now's the time to push pro-entrepreneurship legislation over the goal line, so we can ensure the United States remains the world's most entrepreneurial nation.
Lack of a public policy on manufacturing is the main obstacle to a vibrant factory sector in the United States, according to a Brookings Institution study which also dismissed the notion that high wages are frustrating growth.
In thinking about the competitiveness of a nation, analysts commonly focus on economic factors, such as exports, unit labor costs, and fiscal policy, among others. “Politics” is not typically high on the list, if it appears at all, observes Professor David Moss.
Over the last four decades companies have dispersed more and more of their activities across the globe. Data and analysis from Michael E. Porter and Jan W. Rivkin suggest that the U.S. is losing out on location decisions at an alarming rate, even for high value adding activities such as R&D that it should be able to attract.
It’s generally understood that the United States can’t be competitive—and won’t be able to support high, and rising, living standards—without a well trained, well paid, and continuously improving workforce that can compete with the best that other countries have to offer. Yet, at all levels of the economy, we behave as if we don’t believe this, opines Thomas A. Kochan.
The last three decades have seen American capitalism transformed by a simple idea—that the evaluation and compensation of managers and investors should be outsourced to financial markets, says Professor Mihir A. Desai.