It’s time for a massive, urgent American response to the global challenge. As Cisco chief John Chambers says flatly, "We are not competitive." Where to start? Venture capitalist John Doerr, one of America’s most passionate competitiveness campaigners, calls education "the largest and most screwed-up part of the American economy." He’d start there. GE chief Jeff Immelt has attacked America’s newly restrictive student visa rules. Others focus first on R&D spending or the broadband infrastructure. But the greatest challenge will be changing a culture that neither values education nor sacrifices the present for the future as much as it used to—or as much as our competitors do. And you’d better believe that American business has a role to play—after years of dot-com-bust- and scandal-driven reticence, more corporate leaders need to summon the courage to lead.
While optimism has always been the best guide to predicting the U.S. economy, today’s situation is unprecedented. Global product markets have been with us forever and continue to expand. Global capital markets are still developing—watch out, Unocal and Maytag. But global labor markets on a broad scale are a new phenomenon that could, for better or worse, transform the country. How we respond—in our businesses, our government, and our culture—will shape America in the deepest way.
I'd start by doing away with seniority in the unions. No longer would simply being around long enough cut it. In order to win work, you'll have to do it better, faster and cheaper. (Even two out of three would be a step in the right direction.)
The main reason America cannot compete in the global market is because our stuff is more expensive and not any better quality (sometimes worse, in fact) than overseas goods. And what's worse, we have avoided trade wars like limp-wristed pansies. Whenever China or another third-rate dictatorship threatens trade wars, we cave.
Enough is enough. It's time to cut the legs out from under the anti-competitive union legacy, bring competitiveness back to capitalism, and bring the cost of our goods down so we can put China into a trade deficit for once.
Easy answer.
First we voluntarily slash rents or the sale price of our homes and a lot of other things by 90%.
Then American workers can afford to slash their salaries by 90%.
Then we can compete.
Simple.
"But the greatest challenge will be changing a culture that neither values education nor sacrifices the present for the future as much as it used to—or as much as our competitors do."
That sounds about right. We have become spoiled and lazy, and as a whole, are unwilling to make sacrifices in order to achieve a larger, longer-term goal.