GET THE FACTS BEHIND THE NEWS
Professor Michael Porter distinguished Harvard Business School Professor has written in the Nov. 10 issue of Business Week an article explaining why he believes the economic advantages of the US are eroding and why the development of an economic strategy is critical.
Prof Porter states” a series of policy failures and have offset and even nullified “US “ strengths just as other nations are becoming more competitive”. Let’s have a look at some MORE of the economic areas that worry Prof Porter.
5) The US is energy inefficient. Public policies fail to promote energy conservation.
6) “Trade and foreign investment are fundamental to the success of the US economy but the US has lost its focus and credibility in shaping the international trading system.” “With no strategy the US has failed to work with other advanced countries to assist poorer countries to feel confident about opening markets and internal reform.” “Our foreign aid is still tied to the purchase of US goods rather than the actual needs of countries.”
7) “The federal gov’t has failed to recognize and support the decentralization and regional specialization that drives our economy.
8) Lack of regulatory oversight combined with lack of a strategic plan has resulted in a hodge-podge of policies that have driven up the costs of doing business. TO SUM UP WE HAVE HAD POOR ECONOMIC MANAGEMENT.
9) Is good strategic economic plan possible considering our political system?
It requires political parties and private leaders to come together and chart a long term plan. Prof Porter recommends a bipartisan joint planning group to coordinate priorities,
What political problems does our present depression present?
Tuesday, January 27, 2009
Sunday, January 18, 2009
What economic challeges for Prosperity, Growth
GET THE FACTS BEHIND THE NEWS
Professor Michael Porter distinguished Harvard Business School Professor has written in the Nov. 10 issue of Business Week an article explaining why he believes the economic advantages of the US are eroding and why the development of a economic strategy is critical.
Prof Porter states” a series of policy failures and have offset and even nullified “US “ strengths just as other nations are becoming more competitive”. Let’s have a look at some of the economic areas that worry Prof Porter.
1) “An inadequate rate of reinvestment in science and technology is hampering our feeder system for entrepreneurship. Research and development as a share of the GDP has declined, while it has risen in other countries”. This is well recognized but policy makers have failed to act.
2) Our belief in competition is waning. “A creeping relaxation of antitrust enforcement has allowed mergers to dominate markets”. “We are seeing more interference in competition with protectionism and favoritism.”
3) US colleges and universities do not have a serious plan, such as GI Bill or National Science Foundation programs, to improve access to them. The US now ranks 12th in educational attainment for 25 to 34year olds. For 30 yrs we have not improved ourselves in this area. This is an “ominous trend in an economy that must have the skills to justify our high wages.”
4) At a time when job insecurity and turnover are high the US gov’t has not taken responsibility to provide a transition safety net for US working people. The job training system is ineffective and receives less funding each year. Pension security is declining. Social security is not being adjusted and strengthened. Access to affordable health insurance is a major worry to most people. The gov’t could equalize the tax deductibility of individuals purchasing insurance to assist those not covered by employers, but has failed to do so.
More problem areas on our next blog. Please note so far no mention of “Kick Starts”, economic stimulus’s, or bank liquidity. For Prof Porter’s views of our economic advantages please see Blog, “Why an Economic Strategy.
Where does the US 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 cuntry 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)The US has remarkable dynamism and resilience to take losses and move on.
Professor Michael Porter distinguished Harvard Business School Professor has written in the Nov. 10 issue of Business Week an article explaining why he believes the economic advantages of the US are eroding and why the development of a economic strategy is critical.
Prof Porter states” a series of policy failures and have offset and even nullified “US “ strengths just as other nations are becoming more competitive”. Let’s have a look at some of the economic areas that worry Prof Porter.
1) “An inadequate rate of reinvestment in science and technology is hampering our feeder system for entrepreneurship. Research and development as a share of the GDP has declined, while it has risen in other countries”. This is well recognized but policy makers have failed to act.
2) Our belief in competition is waning. “A creeping relaxation of antitrust enforcement has allowed mergers to dominate markets”. “We are seeing more interference in competition with protectionism and favoritism.”
3) US colleges and universities do not have a serious plan, such as GI Bill or National Science Foundation programs, to improve access to them. The US now ranks 12th in educational attainment for 25 to 34year olds. For 30 yrs we have not improved ourselves in this area. This is an “ominous trend in an economy that must have the skills to justify our high wages.”
4) At a time when job insecurity and turnover are high the US gov’t has not taken responsibility to provide a transition safety net for US working people. The job training system is ineffective and receives less funding each year. Pension security is declining. Social security is not being adjusted and strengthened. Access to affordable health insurance is a major worry to most people. The gov’t could equalize the tax deductibility of individuals purchasing insurance to assist those not covered by employers, but has failed to do so.
More problem areas on our next blog. Please note so far no mention of “Kick Starts”, economic stimulus’s, or bank liquidity. For Prof Porter’s views of our economic advantages please see Blog, “Why an Economic Strategy.
Where does the US 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 cuntry 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)The US has remarkable dynamism and resilience to take losses and move on.
Monday, January 12, 2009
WHY AN ECONOMIC STRATEGY II
GET THE FACTS BEHIND THE NEWS
With the many advantages of the US economic system, listed in ourlast blog, why does Prof Porter believe what has driven our success is starting to erode?
There are probably several reasons. Two reasons that are part of the sme problem stand out.
1) As Prof Porter notes the American political system has evolved with piecemeal reactions to current events. The means that the effect of a decision, or the cumulative effect of several decisions from various parts of our economy or political system are not examined for their effect on the whole system.
2) Decisions made for the purpose of changing the economic system, such a tariffs, anti-trust laws, oversight provisions etc.frequently ONLY take into account the immediate industry or situation rather than considering the overall and long run situation.
This is why the US needs an economic strategy.
Prof Porter does not discuss the Who and Where the strategy would formulated, approved, and maintained. Assuming that we can not expect the general public to be informed and maintain continues interest in such a project the actual work would have to be carried out by a commission, gov’t agency, or respected public organization. It would be very important to have transparency and frequent opportunities for suggestions and discussions.
Next blog we discuss some economic areas that worry Prof Porter.
With the many advantages of the US economic system, listed in ourlast blog, why does Prof Porter believe what has driven our success is starting to erode?
There are probably several reasons. Two reasons that are part of the sme problem stand out.
1) As Prof Porter notes the American political system has evolved with piecemeal reactions to current events. The means that the effect of a decision, or the cumulative effect of several decisions from various parts of our economy or political system are not examined for their effect on the whole system.
2) Decisions made for the purpose of changing the economic system, such a tariffs, anti-trust laws, oversight provisions etc.frequently ONLY take into account the immediate industry or situation rather than considering the overall and long run situation.
This is why the US needs an economic strategy.
Prof Porter does not discuss the Who and Where the strategy would formulated, approved, and maintained. Assuming that we can not expect the general public to be informed and maintain continues interest in such a project the actual work would have to be carried out by a commission, gov’t agency, or respected public organization. It would be very important to have transparency and frequent opportunities for suggestions and discussions.
Next blog we discuss some economic areas that worry Prof Porter.
Saturday, January 10, 2009
WHY AN ECONOMIC STRATEGY
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 be lurching from one tactic to the next without clarifying how each step fits into the overall plan. The overall impression is one of confusion by a leadership(?) that does not know what it is doing.
One of the reasons for Ms. Warren’s observation is the US does not have an economic strategy. As Yogi Berra a modern day philosopher has observed. “If you don’t know where you are going you may not get there.“
Professor Michael Porter distinguished Harvard Business School Professor has written in the Nov. 10 issue of Business Week an article explaining why he believes the development of a economic strategy is critical.
Professor Porter notes the American political system as it has evolved with piecemeal reactions to current events. Each candidate during the election presented a set of disconnected policy proposals for their political appeal. Each “approached the economy with long held ideologies and policy positions, many of which no longer fit with today’s reality. I believe Professor Porter would like to see an ORGANIZED APPROACH TO POLICIES THAT PROMOTE LONG TERM GROWTH AND COMPETITIVENESS.
Where does the US 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) The US has remarkable dynamism and resilience to take losses and move on.
Prof Porter warns us that what has driven our success is starting to erode.
TO BE DISCUSSED IN OUR NEXT BLOG.
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 be lurching from one tactic to the next without clarifying how each step fits into the overall plan. The overall impression is one of confusion by a leadership(?) that does not know what it is doing.
One of the reasons for Ms. Warren’s observation is the US does not have an economic strategy. As Yogi Berra a modern day philosopher has observed. “If you don’t know where you are going you may not get there.“
Professor Michael Porter distinguished Harvard Business School Professor has written in the Nov. 10 issue of Business Week an article explaining why he believes the development of a economic strategy is critical.
Professor Porter notes the American political system as it has evolved with piecemeal reactions to current events. Each candidate during the election presented a set of disconnected policy proposals for their political appeal. Each “approached the economy with long held ideologies and policy positions, many of which no longer fit with today’s reality. I believe Professor Porter would like to see an ORGANIZED APPROACH TO POLICIES THAT PROMOTE LONG TERM GROWTH AND COMPETITIVENESS.
Where does the US 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) The US has remarkable dynamism and resilience to take losses and move on.
Prof Porter warns us that what has driven our success is starting to erode.
TO BE DISCUSSED IN OUR NEXT BLOG.
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