The United States may be home to the world’s largest economy, but it certainly does not have the most competitive, according to a new survey from the World Economic Forum (WEF).
The survey-which ranks the economic competitiveness of countries around the globe based on a number of factors including labor market conditions, infrastructure, and innovation-rates the U.S. economy as the world’s 7th most competitive, a drop of two spots from last year’s rankings.
Among the reasons cited for the U.S. decline: A lack of macroeconomic stability, the nation’s fiscal health, political gridlock, and “low public trust in politicians and a perceived lack of government efficiency.”
The report does have a measure of praise for the U.S. in that its businesses are highly sophisticated and it is host to a “flexible labor market,” but these upsides are clearly being outweighed by the negatives.
For most, these survey results will only confirm what they already suspect: the heavy-handed, big government policies emanating out of Washington D.C. are hurting, not helping, our economic standing in the world. And without a change in policy direction in the near future, the U.S. economy will only continue to become less competitive.