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NIALL FERGUSON: This Is The Study That Shows Why The US Economy Is Doomed
BI ^ | 04/05/12 | Rob Wile

Posted on 04/07/2012 7:05:08 PM PDT by TigerLikesRooster

http://www.businessinsider.com/study-company-us-2012-4

NIALL FERGUSON: This Is The Study That Shows Why The US Economy Is Doomed

Rob Wile | Apr. 5, 2012, 2:02 PM | 17,651 | 67

A Harvard Business School study that Niall Ferguson pointed us to today shows the U.S. has fallen severely behind in terms of international competitiveness.

The study, from January, found that for Harvard alums personally involved in a company relocation decision, 57 percent said the decision "involved the possibility of moving existing activities out of the U.S."

Meanwhile, only 9 percent considered moving existing activities from another country into the U.S. "A U.S.-based respondent was three times as likely to be considering moving business activity out of the U.S. than a non-U.S. respondent was likely to be considering moving an activity into the U.S," writes Professor Michael Porter, the study's author.

The most interesting table from the study plotted current versus expected American industry sector global success.

No, you're not missing something: The respondents expect a decline in competitiveness for all sectors.

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: competitiveness; depression; economy; eucrisis; niallferguson; recession; tax; uscrisis
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1 posted on 04/07/2012 7:05:15 PM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 04/07/2012 7:05:53 PM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster

BO smiles at his success


3 posted on 04/07/2012 7:08:48 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: TigerLikesRooster

there’s a harvard alum in the white house. who freaking cares what they think. they’re yesterday’s news.


4 posted on 04/07/2012 7:10:07 PM PDT by the invisib1e hand (I think in about 5 - no, 4 - years I'll have had enough.)
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To: TigerLikesRooster

If we can get Obama out of the White House, maybe we have a chance to fix things. Otherwise, the outlook is dire.


5 posted on 04/07/2012 7:20:45 PM PDT by Clintonfatigued (A chameleon belongs in a pet store, not the White House)
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To: Clintonfatigued

Romney may be an improvement, though not by much.


6 posted on 04/07/2012 7:24:53 PM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: driftdiver

“BO smiles at his success”

BO didn’t do this.

He is merely the head on the zit.


7 posted on 04/07/2012 7:26:29 PM PDT by PetroniusMaximus
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To: TigerLikesRooster

I dont’ like Romney either, but the titans of international finance and manufacturing see him as one of their own. Perhaps they won’t be so quick to write off the U.S.A. if they think one of their own is President.


8 posted on 04/07/2012 7:27:43 PM PDT by Clintonfatigued (A chameleon belongs in a pet store, not the White House)
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To: TigerLikesRooster
Romney will be an improvement only if we get impressive majorities in both houses, and that should be the FR focus now.
9 posted on 04/07/2012 7:37:06 PM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-Qaeda" and its allies.)
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To: TigerLikesRooster
In the end, it comes down to two problems:

1. The size of government is just TOO big with too much bureaucratic overlap, bloated agencies, and too many obsolete/unneeded laws on the books.

2. An income tax system whose sheer complexity and high tax rates discourage savings and capital investment in the USA.

This is why I call for an aggressive audit of government so we could cut the size of government 30% and gutting the current income tax system in favor of one that is vastly more business-friendly.

10 posted on 04/07/2012 7:41:41 PM PDT by RayChuang88 (FairTax: America's economic cure)
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To: elpadre

Romney will be an improvement only if we get impressive majorities in both houses, and that should be the FR focus now.


It’s going to take a miracle to save this country.

Romney and a Republican dominated congress would only slow things down a tiny, tiny bit.

The rot permeates .....everything.


11 posted on 04/07/2012 7:41:41 PM PDT by unkus (Silence Is Consent)
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To: TigerLikesRooster

Hey, we’re running $1.2, $1.4 trillion deficits in a $14 trillion dollar economy, right?

So government spending well over what gov’t receipts in tax revs is 10% of the economy, right?

And the government borrows 43% of every dollar it spends, right? Let’s call it 40%.

So correct me if I’m wrong. 40% of 10%, or 4% of our GDP just simply does not exist based upon organic demand. It “tallies”, it exists on the coin counter because the government borrows money and spends it.....somewhere.

Our growth rate is cited as 1.5%, 2%, 3% depending upon whom you wish to listen to. But 4% of it is non-existent.

The inescapable conclusion is that there is no growth in the economy absent government deficit spending. In one sense, the Timmy Geithners of the world are right: If we balanced the budget tomorrow the economy would shrink by 4%, which would probably be called and feel like a more-than-mild recession. Add in the knock-on effects and it would be worse.

Oh, and this condition has existed since 1983.


12 posted on 04/07/2012 8:29:41 PM PDT by Attention Surplus Disorder (The only economic certainty: When it all blows up, Krugman will say we didn't spend enough.)
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To: TigerLikesRooster

Let’s get this collapse over with and start anew. There are thieving, effeminate tyrants in all levels of US government and government-linked business now. I’m in my mid-50s, recently shoveled hundreds of cubic yards/meters of rocky earth by myself (personal project—gravity-fed water and solar heating systems) and can do a pretty good jump-spinning crescent kick (learned over 30 years ago). ...working on the tornado kick now (for health) and beginning staff/bo (going to herd yaks here at high altitude soon). ...love to do stone masonry and agriculture.

Many of my fellow Americans are mice, who need to become men. We can do this and rebuild.


13 posted on 04/07/2012 8:31:34 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: TigerLikesRooster

“Let’s get this collapse over with and start anew. There are thieving, effeminate tyrants in all levels of US government and government-linked business now.”

My point with that comment was that our country is running on debt without adequate manufacturing for trade. We can rebuild productivity, if we toughen-up and get to real work.


14 posted on 04/07/2012 8:33:48 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: TigerLikesRooster

Easily solved.

Declare Harvard (and by extension, HBS) a clear and present danger to the US.

Roll the B-52’s and B-1’s, turn Cambridge, MA into a smoking hole.

Problem solved.

And a whole lot of other problems would be solved at the same time, too.


15 posted on 04/07/2012 8:37:43 PM PDT by NVDave
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To: Attention Surplus Disorder

You’ve nailed the underlying issue: A component of our “GDP growth” is based on borrowing from the future. It’s a mirage, a fraud, wrapped in BEA/BLS accounting to legitimize it.


16 posted on 04/07/2012 8:40:23 PM PDT by NVDave
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To: TigerLikesRooster
... the U.S. has fallen severely behind in terms of international competitiveness...just what Obama and his ilk want - now we'll be equal to all other countries.....
17 posted on 04/07/2012 9:02:19 PM PDT by Intolerant in NJ
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To: TigerLikesRooster

Romney doesn’t matter- HE CAN”T WIN!


18 posted on 04/07/2012 9:40:31 PM PDT by matthew fuller (The Magic Mormon is now in position to re-elect the Magic Negro.)
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To: elpadre

Romney is a national socialist, a fascist; please explain how that is better?


19 posted on 04/07/2012 10:45:18 PM PDT by SatinDoll (No Foreign Nationals as our President!)
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The United States has a 39% corporate tax including the Alternative Minimum Tax(which should be abolished) not including state and local taxes. Would you want to start a corporation or business with that amount of taxes?


20 posted on 04/08/2012 12:08:39 AM PDT by U-238 (Time is like a river made up of events which happen,and its currents is strong;no sooner its swept)
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Comment #21 Removed by Moderator

To: driftdiver; TigerLikesRooster
BO smiles at his success.

This started years ago but Obama has accelerated the process.

22 posted on 04/08/2012 12:28:54 AM PDT by Doofer (Still, a man hears what he wants to hear and disregards the rest.)
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To: scan59

ping


23 posted on 04/08/2012 12:42:21 AM PDT by babyfreep
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To: TigerLikesRooster

This is what I hear often overseas in different countries. It does not help to be an ostrich and feign this does not exist. It is indeed a big problem and is TRUE. Obama bears a great responsibility for it, because companies are being harrassed, molested and taxed to death. Is it any wonder their executive management wants to move them offshore to friendlier environments? We see this even among US states. The more tax burdensome that state, and more companies will flee such a state (like California or New York or New Jersey), for greener pastures. These are usually states with strong Democrat Party majorities in their state legislatures.


24 posted on 04/08/2012 1:08:03 AM PDT by AmericanInTokyo (NO time for malaise/lethargy on FR! Fact is, FREEPERS UNITED CAN help stop Mitt's nomination effort)
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To: AmericanInTokyo
Those Dems will never admit that they are the cause. In some Dem family, all of their members have post-graduate degrees. They have several advanced degrees to “back up their insanity.” The more degrees, the more correct they are, so they reason.
25 posted on 04/08/2012 1:39:23 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster

We’re a democratic republic. The people get the politicians they want and deserve. Bashing Obama and the Democrats is pretty meaningless and shortsighted. We should be bashing the people who vote these people in as their representatives.

Moreover, we need to address the larger societal trends that taught these voters their value system. This bad economic trend will not change as long as hedonism remains the driving motivating force of the public. With the decline in religion on the increase with no turnaround in sight, selfish hedonism is likely to continue to rule the day. The move towards socialism and Marxism goes hand-in-hand with selfishness.

People’s personal aspirations increasingly center around substance abuse and sexual perversions. It has been getting worse with each new generation. The latest statistics out for children and teens now on these issues are devastating.

Without religion, people are not taught to seek the deeper self-fulfillment that comes from controlling one’s impulses, creating a family and finding a vocation that contributes to society (and, through capitalism, correspondingly rewards them). As long as people are seeking these selfish and irresponsible pursuits instead of finding a way to CONTRIBUTE to society, they will demand that the rest of society, through the government, meet their needs (and then some) with free food, medical care, education, housing, general welfare, etc. As long as they are demanding that, the government will need to continue to attack wealth creators, businesses and producers in order to get the money to redistribute goodies to the selfish, hedonistic, leeching class.

Only religion has proven able to control people’s worse impulses and instill the values of discipline, responsibility and service to others in them. This is why there can be no such thing as a Republican party that stays conservative on economic issues but goes liberal on social issues. Without social conservatism, there can be no lasting economic conservatism. Unless people are taught moral values, they will attempt to leech off of the rest of society in order to bankroll the pursuit of their own selfish desires.

That is what we’re seeing now. It’s part of a long-term trend to which there is no end in sight. Perhaps the NUMBER ONE issue conservatives should be focused on is ending the government monopoly on the schools. 100% school choice needs to be the law of the land, so that religious schools could be freely chosen by everyone who wants to attend them. Because the private sector is failing on this front more than it ever has before, more drastic measures may need to be taken, such as massively stepped-up anti-drug and anti-alcohol government intervention.

The bottom line is that it’s an uphill battle, so conservatives need to choose their battles wisely. Focusing strictly on these economic issues without looking at the fundamental reasons we got to this point is missing the point. If we successfully address and solve our society’s moral, ethical and social issues, the economic issues will pretty much take care of themselves. If we fail to address where the values of this nation stand, then there will be NO HOPE to escape the downward economic spiral that we’re on.


26 posted on 04/08/2012 1:46:56 AM PDT by JediJones (The Divided States of Obama's Declaration of Dependence: Death, Taxes and the Pursuit of Crappiness)
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To: JediJones

Well said. We lack what our Framers called virtue. It is a prerequisite for self government. Without it, the once freest people on earth are suited only for despotism.


27 posted on 04/08/2012 2:46:34 AM PDT by Jacquerie (No court will save us from ourselves.)
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To: JediJones

Wow. I couldn’t possibly add anything to that.


28 posted on 04/08/2012 2:54:19 AM PDT by oprahstheantichrist (The MSM is a demonic stronghold, PLEASE pray accordingly - 2 Corinthians 10:3-5)
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To: familyop

Good luck with your project mayhem there.


29 posted on 04/08/2012 3:03:45 AM PDT by chargers fan
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To: Attention Surplus Disorder

Very definitely some scary statistics you quote, but it’s not as dire as you conclude. If the US government stopped borrowing, all the money currently going to buy T-bills would go elsewhere, possibly including funding new startups, low-interest business loans, buying new bonds, ... all of which would grow our economy much more than government spending.

Unfortunately, lately the Fed has been one of the biggest buyers of T-bills which means the last 2 years of our economy have been largely fictitious.


30 posted on 04/08/2012 3:16:44 AM PDT by TennesseeProfessor
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To: JediJones

Jesus is the answer.

And I’m 100% serious.

You understand and articulate the problem very well. Thank you.


31 posted on 04/08/2012 3:39:11 AM PDT by mn-bush-man
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To: Attention Surplus Disorder
The inescapable conclusion is that there is no growth in the economy absent government deficit spending. In one sense, the Timmy Geithners of the world are right: If we balanced the budget tomorrow the economy would shrink by 4%, which would probably be called and feel like a more-than-mild recession. Add in the knock-on effects and it would be worse.

Yep. But while our medicine will make us worse off for a bit, it's the only way to get well.

32 posted on 04/08/2012 3:58:54 AM PDT by Principled
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To: NVDave
Roll the B-52’s and B-1’s, turn Cambridge, MA into a smoking hole.

i.e. CWII. Ok. Lets do it.

33 posted on 04/08/2012 4:05:42 AM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: familyop
Let’s get this collapse Civil War over with and start anew.

Fixed.

34 posted on 04/08/2012 4:09:55 AM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: JediJones
All very well said and to the point.

So long as the gov. subsidizes stupidity we will get increasing stupidity.

35 posted on 04/08/2012 5:15:58 AM PDT by Pietro
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To: unkus

“Romney and a Republican dominated congress would only slow things down a tiny, tiny bit.”

Or make things worse, if they rubber stamp his big government agenda.


36 posted on 04/08/2012 5:25:39 AM PDT by ScottfromNJ
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To: the invisib1e hand

Harvard, Yale, and Columbia need to be closed and their charters revoked and their buildings raised

They have given the US the worst minds of the last 50 years and will be the death of our country if we do not destroy them first


37 posted on 04/08/2012 5:33:25 AM PDT by Ouderkirk (Democrats...the party of Slavery, Segregation, Sodomy, and Sedition)
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To: Ouderkirk

Harvard has surprised me in the last little bit of time. Michael Sandel’s course on Ethics is now the most popular undergraduate course at Harvard. And they hired Ferguson. So there is hope for the beast. This is a change from radicals as younger faculty doing the “teaching” while doddering New Dealists held the prestigious chairs.


38 posted on 04/08/2012 5:46:02 AM PDT by AndyJackson
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To: TigerLikesRooster

People should read this article and look at the bar charts. The things that are killing us is our legal/political/regulatory regime coupled with k-12 education. Our political system is destroying us. When we are at the point that Texans view Austin as almost as much of an enemy as DC it has gotten pretty bad. When a guys son studied petrochemical engineering and is now doing offshore drilling in Thailand rather than exploration closer to home (where he wanted to be) you know things are pretty bad.


39 posted on 04/08/2012 5:56:30 AM PDT by AndyJackson
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To: PetroniusMaximus
He is merely the head on the zit.

And when it pops the puss will be everywhere.

40 posted on 04/08/2012 6:08:50 AM PDT by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: JediJones

I”m going to steal your entire post and put it on Facebook as a note. Thanks in advance.

Nothing I like better than well-reasoned arguments that piss off liberals. I’ve got a handful that follow me.


41 posted on 04/08/2012 6:11:58 AM PDT by Big Giant Head
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To: familyop

Argentina went from one of the richest nations to what it is today. The “collapse’ comes quick, rebuilding can take hundreds of years. If ever.

If there is a collapse, we won’t rebuild, we will fragment.


42 posted on 04/08/2012 6:29:36 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: RayChuang88

“This is why I call for an aggressive audit of government so we could cut the size of government 30%”
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

A good start but it needs to go much further over time. If you have a tumor on your nose that is nine times the size of your nose you want to remove one hundred percent of the tumor which will leave only the nose. In other words about a ninety percent reduction in total mass.


43 posted on 04/08/2012 6:35:41 AM PDT by RipSawyer
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To: AndyJackson
People should read this article and look at the bar charts. The things that are killing us is our legal/political/regulatory regime coupled with k-12 education. Our political system is destroying us. When we are at the point that Texans view Austin as almost as much of an enemy as DC it has gotten pretty bad. When a guys son studied petrochemical engineering and is now doing offshore drilling in Thailand rather than exploration closer to home (where he wanted to be) you know things are pretty bad.

I did, and it was every telling, quick read, everyone take A-J's advice and read it...

Everything in "Red" in the horizontal bar charts is what we all complain about here, ineffective government (aka K street, is vs them and special interest not wanting a liberty revival), tax code, legal environment, and K-12 education.

My Gosh, that sounds like your average Tea Partier trying to explain to their liberal relative what is wrong with the Country.

What the "Red" Bars do not show is the political bent of those surveyed. If they "Liberal" titans of business and are saying it I don't want to own their stock.

I wouldn't want to own their stock because their is a fundamental disconnect between their epistemology, their world view, ad the data they take in tells them otherwise and their response does not match the other two. They need to go back and reexamine all they believe in. They won't, they can't, it is too painful to admit you are wrong.

44 posted on 04/08/2012 6:39:49 AM PDT by taildragger (( Palin / Mulally 2012 ))
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To: TennesseeProfessor
the last 2 years of our economy have been largely fictitious.

Quite the optimist, aren't you?

It's honestly more like the last 30, longer than my entire adult life.

45 posted on 04/08/2012 7:02:09 AM PDT by RegulatorCountry
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To: familyop

bttt


46 posted on 04/08/2012 7:29:18 AM PDT by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: TigerLikesRooster

It is no joke when I say Obama is turning America into a 3000 mile wide Detroit. Literally the productive in this country are being dragged under by the debts incurred to democratize the planets’ hellholes and a welfare state that not only is hugely expensive its denizens destroy wealth faster than a nuke.


47 posted on 04/08/2012 7:34:41 AM PDT by junta ("Peace is a racket", testimony from crime boss Barrack Hussein Obama.)
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To: Clintonfatigued
If we can get Obama out of the White House, maybe we have a chance to fix things. Otherwise, the outlook is dire.

We need to get 0bama out of the Whitehouse to save the country and we are on the verge of nominating the same thing, only a whiter shade, to replace him????

Yep, insanity, doing the same thing over and over and expecting a different result.

48 posted on 04/08/2012 8:17:39 AM PDT by EGPWS (Trust in God, question everyone else)
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To: ScottfromNJ

“Romney and a Republican dominated congress would only slow things down a tiny, tiny bit.”

Or make things worse, if they rubber stamp his big government agenda.


As I said before; the rot permeates everything. It’s all rotten to the core.

America is toast. Survival mode is the name of the game from here out. Extremely sad.


49 posted on 04/08/2012 8:20:31 AM PDT by unkus (Silence Is Consent)
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To: TigerLikesRooster

“The more degrees, the more correct they are, so they reason.”
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

A young fellow who was on the payroll of my tiny business 25 years or so back had some issues of his own but he said something once that I still remember. He was referring to some of his extended family members with their college educations and he told me that he was convinced that they went to “stupid school”, he said that you could not be that stupid naturally, he was certain that they had to be taught that kind of stupidity in a special school. Maybe he was on to something?


50 posted on 04/08/2012 8:23:57 AM PDT by RipSawyer
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