U.S. Economy Declared World’s Most Competitive
The World Economic Forum in its annual Global Competitiveness Report declared last week that the U.S. economy is the most competitive in the world. The U.S. also earned top marks in labor market efficiency and innovation. The report is a refreshing reminder that, despite a myriad of regulations and taxes, America is still the pinnacle of global creativity.
Pessimistic naysayers and doomsday prophets tirelessly criticize the United States for its allegedly decrepit telecommunications infrastructure, spiraling health care costs, and mounting trade deficit. Liberals prescribe more government intervention to solve these woes—but the phenomenal economic successes of the United States are not because of government, but in spite of it.
It can be challenging to remain optimistic in the face of seemingly endless schemes by collectivists and central planners to impose strict controls and excessive taxes on American individuals and businesses. But while libertarians have a long way to go before we can declare victory in the battle against socialist policies, there are many aspects of the U.S. economy to appreciate.
Businesses in the U.S. enjoy low entry barriers, flexible labor laws, and market-based pricing. Heavy regulatory burdens that plague European companies are relatively minimal in the U.S., and we have strong property rights and a predictable legal framework to encourage business innovation. And while taxes in the U.S. are too high, our tax rate on personal income is among the industrialized world’s lowest and we have relatively minimal government spending. The report also notes the unparalleled quality of our private university system and research collaboration between academics and entrepeneurs.
While America may be the most competitive nation, simply leading the world is not enough. More deregulation, privatization, and tax reduction will allow the U.S. to jump ahead of welfare states. With these reforms, our future can offer limitless prosperity and growth.