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The Competitiveness of the US Economy - Essay Example
Abstract: The US economy is long been regarded as the most competitive economy in the world because of its policies which promotes healthy competition among business organizations. In the face of recession, US need to focus on its weaknesses such as insufficient judicial independence, high security costs, and bias to avoid the erosion of this competitiveness.
For the past 15 years, the nation has maintained its position as the most competitive economy in the world amidst the challenges in the rapidly evolving global environment. During 2007, the IMD World Competitiveness Yearbook together with the World Economic Forum cited that US is "arguably the country with the most productive and innovative potential in the world" (Reuters 2007). Amidst this regard for US competitiveness, this paper argues that the economy should watch out and safeguard this status in the face of recession it is undergoing.
A country's competitiveness is indicated not just by economic strength but through the creation of a market environment which promotes healthy and unbiased competition among industry players. In order to be competitive, leaders should pursue policies which treat players equally. In an extreme case, competitiveness is indicated by a market where there is no government intervention (McConnell & Brue 2002). However, in the world today this system is not feasible and thus, competition is promoted through little or balanced intervention from the state.
This paper believes that US economy is by far the most competitive economy in world noting the government's quest in promoting efficiency and fair play. ...