U.S. Competitiveness: The View from Davos

By September 27, 2006Economy

Later today the NAM will be releasing our new study, How Structural Costs Imposed on U.S. Manufacturers Harm Workers and Threaten Competitiveness, an updating of the Manufacturing Institute and the Manufacturing Alliance/MAPI’s 2003 cost study. The analysis examines the ever-increasing structural costs manufacturers face because of wrong-headed government policies.

So we note with interest this story from Tuesday:

Sept. 26 (Bloomberg) — The U.S. lost its position as the world’s most competitive economy to Switzerland as budget and trade deficits prompted a slide to sixth in the World Economic Forum’s annual rankings.

Switzerland jumped from fourth place last year and Finland, Sweden, Denmark and Singapore all overtook the U.S. with Japan, Germany, the Netherlands and the U.K. rounding out the top ten in the study of 125 nations by the Geneva-based forum.

Different studies, different methodologies, different conclusions…and we have our doubts. The sponsors of the annual Davos conference tend to favor big government budgets, high taxes and managed economies. And the U.S. does have a defense budget matching the nation’s size and responsibilities, unlike the other leaders. But, still worth noting.

Check back with us for more on the NAM cost study later in the day.