There was a time when no other nation on the planet could compete with the United States. But no more.
According to a World Economic Forum survey the US doesn’t even make the top 5 in a global ranking of the world's most competitive economies. Read more: US Slips Down the Ranks of Global Competitiveness.Although the US remains the world's largest economy, we’re 7th in competitiveness, that's 2 notches lower from just a year ago.
A lack of macroeconomic stability and concerns about fiscal health were some of the reasons for the downgrade, according to the annual survey.
“Other reasons include the spending deficit and US debt crisis that Washington isn’t dealing with,” added Alison Fraser of the Heritage Foundation on The Kudlow Report. “ We’re facing Taxmageddon!”
Jared Bernstein of the Center on Budget & Policy Priorities argued that taxes have nothing to do with the decline.
“Every country above us on that list, with the exception of Singapore collects significantly more tax revenue that we do,” he countered on Kudlow.
A little over a year ago, the United States lost its triple-A credit rating from Standard & Poor's after a stand-off between Republicans and Democrats over the raising of the debt ceiling stoked fears of a potential debt default.
In case you’re wondering the most competitive economies were Switzerland and Singapore respectively.