Thursday, September 09, 2010

Yay! The World Economic Forum has downgraded U.S. competitiveness

Which means we're doing something right. Because what the World Economic Forum calls competitiveness really has to do with the amount of regulation of the economy. That and the general size of the industrial base, whereof you have a band of countries underneath the US in competitiveness that are both industrialized and heavily regulated but countries that are largely unregulated but not heavily industrialized further down. You can't really say, for example, that France is not more competitive than Thailand and still be remotely credible, so they don't. What goes unspoken is how those industrial powers that have regulation got there in the first place. In many cases it's by shirking free market policies and instead pursuing active industrial policies designed to foster growth. The full list in PDF format is Here. But be that as it may it's no mystery where the WEF is at. They want deregulation, free markets, and capitalism, and their competitiveness report is largely about making money.

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