US Economic Forecast 2013 America an Economic Innovator in 2013?
America has a proud history of economic ingenuity. Since 1970, 51 Americans have been awarded the Nobel Prize in Economic Sciences (the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
The U.S. also has the largest and most technologically powerful national economy in the world, with a per capita Gross Domestic Product (GDP) of $48,442.
There is no doubt that the U.S. is both a political and economic force, but will it remain so?
When it comes to globally competitive economies, the U.S. is slipping. The U.S., which placed fifth in 2011, fell two positions to the seventh spot—marking its fourth year of decline.
The U.S. was downgraded due to economic instability, political deadlock, the business community’s mistrust of the government, concerns over its fiscal health, a deterioration in the development of its financial markets and technological readiness.
Unfortunately, actions taken since 2008 have put our country’s economic future on the backburner. In an effort to stem the economic slide of the U.S. housing collapse that first surfaced in 2005, the Federal Reserve initiated Quantitative Easing in November 2008, dumping trillions of dollars into the U.S. economy. The end result? A weak dollar and an anemic economy.
The weak American dollar has translated into increased import prices, which, in turn, has cut into corporate America’s bottom line. Lower margins, in turn, lead to layoffs, sending millions into unemployment. As an increased number of Americans struggle to get by, they turn to food stamps. Banks fail, and housing collapses.
To rectify the situation, the government increases and expands taxes to generate capital, all in an effort to stimulate the economy.
This is not the recipe for economic success in the U.S. America’s future economic growth and competitiveness will depend on its ability to innovate, create, and reinvent the way we do business and, meet the growing and evolving untapped demands of an increasingly challenging global environment.