The Economy Faces Structural Problems
Michael Porter wrote Competitive Advantage in 1985, a book widely credited with spawning the consulting industry. I have read it and several other Porter works a few times and have a great deal of respect for his work. The US business environment faces structural issues which must be addressed. The jobs collapse is a skill driven issue especially brought about by the artificial boom in construction that happened during the rise of the credit bubble. The fundamental challenge facing America is that we are no longer competitive enough to restore the jobs that were lost and support a rising standard of living. Some of the recommendations he makes to fix this include:
- Lowering corporate tax rates to make them more globally competitive
- Help businesses focus on job training (help businesses invest in skills)
- Get rid of loopholes
- Improve immigration policy
- Infrastructure improvements
Michael believes this is not a zero sum game instead that we can create more jobs here and trade with other countries doing this. Below is a video where he discusses this as well as a paper he wrote earlier this year.
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The Looming Challenge to U.S. Competitiveness
Ken Moore, Certified Financial Planner®, MBA
Managing Partner
