the looming challenge to us competitiveness - Initiative for a ...

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HOW DID AMERICA GET HERE? INCREASING GLOBAL OPTIONS • Starting in the 1980s, the world opened for business and other countries started improving rapidly SHORTENED TIME HORIZONS • Business, motivated by high-powered stock-based incentives, faced rising short-term pressures. Government leaders faced similar pressures from the need to perpetually campaign and respond to shortening news cycles LESS CONNECTED COMPANIES • As firms moved more and more activities outside of the U.S., their close connection to U.S. communities weakened HOBBLED AND DISTRACTED GOVERNMENT • Stagnating wages and inequality led to unsustainable entitlements, rising debt to support consumption, and waning political support for business • Investments in public goods crucial to competitiveness came under increasing pressure U.S. COMPETITIVENESS PROJECT 18
STRATEGIC PRIORITIES FOR FEDERAL POLICY ON U.S. COMPETITIVENESS 1. Ease the immigration of highly skilled individuals, starting with (but not restricted to) international graduates of U.S. universities 2. Rewrite the corporate tax code with lower statutory rates and no loopholes 3. Create an international taxation system for multinational companies that taxes overseas profits only where they are earned and does not assess additional taxes on profits repatriated to the U.S., which is consistent with practices in other leading countries 4. Aggressively use established international institutions to address distortions and abuses in the international trading system that disadvantage the United States, such as trade barriers, subsidies and lack of intellectual property protection 5. Streamline regulations affecting business by focusing on outcomes rather than reporting and compliance, shortening delays, and reducing the use of litigation 6. Enact a multiyear program to improve logistics, communications and energy infrastructure, prioritizing projects with the greatest economic benefits 7. Agree on a federal regulatory and reporting framework to guide the responsible development of newly accessible American gas and oil reserves, balancing economic and environmental considerations 8. Create a sustainable federal budget through a combination of revenue increases (including reducing deductions) and less spending (through efficiencies in entitlement programs and revised spending priorities), embodying a compromise such as Simpson-Bowles or Rivlin- Domenici Note: This list was prepared by Professors Michael E. Porter and Jan W. Rivkin in order to spark discussion. It does not represent the position of Harvard Business School or of other HBS faculty. U.S. COMPETITIVENESS PROJECT 19
Page 1 and 2: THE LOOMING CHALLENGE TO U.S. COMPE
Page 3 and 4: 3% DISTURBING TRENDS ROLLING 10-YEA
Page 5 and 6: DISTURBING TRENDS U.S. LABOR FORCE
Page 7 and 8: KEY HBS SURVEY FINDINGS 1. Business
Page 11 and 12: KEY HBS SURVEY FINDINGS SUCCESS IN
Page 15 and 16: U.S. trajectory ASSESSMENTS OF ELEM
Page 17: U.S. trajectory ASSESSMENTS OF ELEM
Page 21 and 22: COMPANY INFLUENCE ON U.S. COMPETITI
Page 23: A CALL FOR ACTION, NOT DESPAIR •

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