GET THE FACTS BEHIND THE NEWS

Elizabeth Warren head of the oversight panel setup by Congress to  monitor the Federal Bailout  says, “THE GOV’T STILL DOES NOT SEEM TO HAVE A COHERENT STRATEGY FOR EASING THE FINANCIAL CRISIS.  “Instead the gov’t seemed to go from one tactic to the next without clarifying how each step fits into the overall plan.

A reason for Ms. Warren’s observation is the US does not have an economic strategy.   Professor Michael Porter distinguished Harvard School Professor  notes the American political system has evolved with piecemeal reactions to current events.   

Where do we really stand?  Prof Porter says the US has prospered because of unique competitive strengths.

 1) The US has an unparalleled environment for entrepreneurship and starting new companies.

 2) US Entrepreneurship has  been fed by a science, technology, and innovation that is by far the best in the world.

 3) The US has the world’s best institutions of higher learning .

 4)  The US has been the country with the strongest commitment to competition and free markets.

 5) The task of forming economic policy and putting it into practice is highly decentralized across states and regions.  This  decentralization  maybe the US greatest competitive strength.

 6)  The US benefits from the most efficient capital markets of any nation.  This especially true  of risk capital.

 7)  US has remarkable dynamism and resilience to take losses and move on.

Prof Porter believes” a series of policy failures have offset and even nullified “US “  strengths  just as other nations are becoming more competitive”. Let’s have a look at nine of the economic areas.