The World Economic Forum has downgraded the United States once again in their list of the most competitive nations. Since Barack Obama has been president, the U.S. has slipped from Number One in 2008 to Fifth in 2011. Now, the WEF puts us at Seventh overall. The reasons for the downgrade stems from our national debt, the failure of our political leadership to do anything about it, and the general loss of confidence by the public in our government. As usual, all we need do is look at the Obama administration and the failed policies coming out of the White House for why America is slipping closer to the fiscal cliff.
A key player in all of this is uncertainty. The nation is drifting due to a lack of clear guidance as Obama seems only capable of offering last-minute, bandaid fixes, lasting only one or two years. The heart of this uncertainty lies in our tax policy. The Bush Tax Cuts were successful in reversing the post Dot-Com recession because it laid out a foundation for ten years, giving businesses something to truly plan upon. The end result was 52 consecutive months of excellent job growth, averaging well over 300,000 new jobs per month, and a healthy GDP growth of more than 4% annually. At least 3% GDP growth is required each year for any positive returns. Under Obama, GDP growth has averaged only 0.7% annually.
The expansion of the federal government under Obama, and our national debt, is a primary drag on our ability to compete in the global economy. Businesses are more likely to invest in countries with better tax rates, fewer regulations, and where governments welcome them as opposed to blaming them for all evils. But Obama has gone the opposite direction with threatening to raise taxes on investors, increase regulations on businesses and shows no ability to even conceive of an actual federal budget and tackle deficit spending. Indeed, the White House has missed a deadline this past Friday to detail what military cuts they will recommend should sequestration take effect this coming January.
Equally to blame as Obama is none other than Senate Majority Leader, Harry Reid as the U.S. Senate has failed to produce a budget for more than 1,200 days. This is simply unheard of and is a huge stain upon the integrity of the government. Why should we citizens be expected to live in reality and budget our own affairs when the government apparently does not wish to do so? The situation in general is simply just shameless.
Some pundits will attempt to spin the World Economic Forum downgrade of the United States competitiveness as a symptom of GOP obstruction in Washington. But the Republicans in the House have passed budgets and other bills designed to put certainty and confidence back in the equation. Barack Obama and the Senate Democrats, led by Harry Reid, refuse to truly work with Republicans in solving any of our long term economic issues. Under Obama, we have gone from the most competitive nation on Earth to 7th place. How much longer must we suffer?