The US economy can be compared to the cleanest shirt in the laundry basket, according to Harvard’s Michael Porter. Porter claimed that US competitiveness is lagging but compared other economies, including China’s, the US doesn’t look so bad. Porter wants a new national economic policy, saying that lack of infrastructure spending, poor tax policies and the looming deficit problem is the dark cloud overhanging the economy.
However, Porter and I disagree on immigration. While it is a positive, people who emigrate are usually the most likely to succeed and are willing to take chances, I believe that a new wave of immigrants are benefit shopping rather. The countries that offer the most social spending are attracting the greatest number of displaced people.
The basic thesis is the same. The US and the rest of the West economies are in a prolong slow or not growth trap and that isn’t likely to change in the near future.