• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Is the US Losing Competitiveness in the Global Market?

phattonez

phattonez

Catholic
DP Veteran
Joined
Jun 3, 2009
Messages
30,870
Reaction score
4,246
Gender
Male
Political Leaning
Very Conservative
[ame="http://www.youtube.com/watch?v=meAF15Zv490"]YouTube - Question and Answer Session: The Fight Against Big Government[/ame]

When other countries have lower business taxes and are trying to reform their tax codes, we're increasing government spending and raising taxes. Will this have a negative effect on growth?
 
It's not so much that the US is losing competitiveness, but rather other countries are gaining it. OK, I guess that means the same thing. But what I'm trying to convey is the US isn't becoming less productive. Rather, other countries are becoming more productive. Look at China today versus 20 years ago. When you are at the bottom of the productivity scale you have a lot more potential growth than you do at the top.
 
And why shouldn't we be doing the same things to make ourselves more competitive? Why are we trying to raise taxes when other countries are eliminating taxes?
 
Stautory tax rates mean nothing. If you want to be taken seriously when you discuss such subjects, talk about the effective tax rate. Only the uninformed go off about stautory, which is a severe failure to understand the tax code.

Putting U.S. Corporate Taxes in Perspective — Center on Budget and Policy Priorities

Tax rates: Effective tax rates | The Economist

Is the US getting less competitive? Of course. Comparative advantage. We took someone's lunch when we industrialized. Now someone else is after ours. What the US needs to do is change its economy just as Europe did when we started making shovels cheaper then they did.
 
The US has always had issues when it comes to competitiveness but because of the size of the US market it did not really matter that much.

Of the issues that are problematic, healthcare is at the top if you ask me. The burden of healthcare through your job system the US mostly runs is considerable competitiveness issue when competing with countries that have UHC. Look at the burden it has had on GM and other major companies.

Another issue since 9/11 has been getting access to the US. It has cost billions of dollars for business's and they have moved meetings and conferences away from the US to countries that have easier access rules.

But on cooperate taxes.. yes on paper the US has high cooperate taxes, but in reality it is pretty low since many companies avoid paying full taxes or any taxes at all.

as for the link provided by obvious Child

Tax rates: Effective tax rates | The Economist

As far as I can see one thing missing from that piece of math (and a hard piece to add or subtract).. healthcare costs. It is included in most countries there, but not in the Swiss and US numbers. Hence the numbers are highly skewed in favour of the Swiss and US.
 
One way to make US goods very competitive on the world market is to trash the value of the USD. As the dollar falls, our labor, our goods all become cheaper on the world market. Hey, it worked for other countries.

Obviously a strategy that should be given a lot of thought before it's implementation, as it would cause other things to happen as well. But hey, if you wanted to increase our competitiveness and do it quickly that would do it.
 
vvx said:
One way to make US goods very competitive on the world market is to trash the value of the USD. As the dollar falls, our labor, our goods all become cheaper on the world market. Hey, it worked for other countries.

Obviously a strategy that should be given a lot of thought before it's implementation, as it would cause other things to happen as well. But hey, if you wanted to increase our competitiveness and do it quickly that would do it.
Click to expand...

Would require that the US actually makes things.. it does not that much any more.
 
phattonez said:
When other countries have lower business taxes and are trying to reform their tax codes, we're increasing government spending and raising taxes. Will this have a negative effect on growth?
Click to expand...

Absolutely it will - it's placing more financial burdens on people who already can't afford their current basics, let alone more forced-debt payment (via government).
 
PeteEU said:
Would require that the US actually makes things.. it does not that much any more.
Click to expand...

The US is a top exporting country Pete, you know should know such things. Is the economy reliant on positive net exports? Nope.

In terms of foreign direct investment, the US is still a wet dream for a good deal of foreign industries. We are the worlds largest consumer market. We are the worlds largest producer of wind energy, even though we are the largest consumer of energy (portable or not).

Now in terms of supply determinants, the US system of higher education is the best (by quite a bit) in the world. Especially in all aspects of computer technology, which is very important in developed markets. Our commerce system (in regards to interaction with the consumer base) is second to none.

But... The most troubling aspect is the health care system. An employee's/potential employee's health is a crucial component to worker productivity, the ability to obtain in demand skill sets, etc....

Phattonez, you being a free markets guy and all, i would assume you were aware of the fact competition is not a zero sum game. Productivity for a country of this size, both area and population, is off the charts.
 
Goldenboy219 said:
The US is a top exporting country Pete, you know should know such things. Is the economy reliant on positive net exports? Nope.
Click to expand...

I do know, but what exports? TVs? PCs? Cloths? Toys? Boats?.. I dont deny the US has exports, but it is not an export economy like Germany and Japan. Heck even most of the "US products" I can get my hands on here, are produced locally or outside the US, aka no American labour is involved.

In terms of foreign direct investment, the US is still a wet dream for a good deal of foreign industries. We are the worlds largest consumer market. We are the worlds largest producer of wind energy, even though we are the largest consumer of energy (portable or not).
Click to expand...

Never said you were not. The US is still the biggest market in the world, no doubt about that. As for the largest producer of wind energy.. sure congrats on that.

Now in terms of supply determinants, the US system of higher education is the best (by quite a bit) in the world. Especially in all aspects of computer technology, which is very important in developed markets. Our commerce system (in regards to interaction with the consumer base) is second to none.
Click to expand...

Disagree. But that is another discussion.
 
 
You must log in or register to reply here.
Back
Top Bottom