U.S. Economy Losing to Sweden & Singapore

(AP)  The U.S. has slipped down the ranks of competitive economies, falling behind Sweden and Singapore due to huge deficits and pessimism about government, a global economic group said Thursday.

Switzerland retained the top spot for the second year in the annual ranking by the Geneva-based World Economic Forum. It combines economic data and a survey of more than 13,500 business executives.

Sweden moved up to second place while Singapore stayed at No. 3. The United States was in second place last year after falling from No. 1 in 2008.

The WEF praised the United States for its innovative companies, excellent universities and flexible labor market. But it also cited huge deficits, rising government debt and declining public faith in politicians and corporate ethics.

"There has been a weakening of the United States' public and private institutions, as well as lingering concerns about the state of its financial markets," the group said.

Mapping a clear strategy for exiting the huge U.S. stimulus "will be an important step in reinforcing the country's competitiveness," it said.

The report was released in Beijing ahead of a WEF-organized gathering of global business executives next week in neighboring Tianjin. The group is best known for its annual Davos meeting of corporate leaders.

The report ranks 139 countries by assessing business efficiency, innovation, financial markets, health, education, institutions, infrastructure and other factors.

The United States was followed by Germany, Japan, Finland, the Netherlands, Denmark and Canada.

Switzerland held its top rank due to its strong innovation, evenhanded regulation and one of the world's most stable economic environments.

The WEF cited education and regulation as key areas for improvement in a number of economies and warned leaders not to lose sight of long-term needs as they struggle with the global crisis.

"For economies to remain competitive, they must ensure that they have in place those factors driving the productivity enhancements on which their present and future prosperity is built," one of the report's co-authors, Columbia University economist Xavier Sala-i-Martin, said in a statement.

China performed best among major developing economies, rising two places from last year to 27th based on its large and growing market, economic stability and increasing sophistication of its businesses.

Japan gained two places, helped by strong innovative abilities, though its status was hurt by the country's two-decade-old financial malaise.

Greece plunged 12 places to 83rd, plagued by a debt crisis and mounting public concern about corruption and government inefficiency, according to the WEF.

Associated Press Writer Frank Jordans in Geneva contributed

[tiredofthebs]

Many in this country have enjoyed pseudo-prosperity for too long. This "economic downturn" had to happen! Do you really think other nations ENJOY having a large lower class population?! They realize that in a capitalistic society, it's a necessary evil. That's just the way it is. Now with MOST US MANUFACTURING being done abroad, a lot of blue collar laborers are going to feel it. And if you think getting rid of the competition will help (ie - illegal immigrants), think again.

[yesnonoyes]

Most American people think that bringing taxes down, lesser regulation and taking out unions will bring paradise which is amusing when you look reality. How can countries that have a lot higher taxation, tougher regulation and bigger unions compete or even beat US in this study or Newsweek country comparison where US wasn't even in top 10. Soon US will elect elect Republicans in power and all they had to do was stall governments work for few years, "blue dogs" or should i say bought democrats. Health care, schools system, oil industry, food industry and wall street all be fixed if US would regulate them less or privatize them has been miracle cure for all these in Republican party for 30 years, seems like its really working well so lets elect more Republicans doesn't sound funny in US?

[longtree-2009]

the usa is slipping on all fronts, in all categories, including militarily. we are a nation of people divided among so many lines that we cannot stand. every elected official from obama down to the lowest office holder in city, county, state, and federal government speaks and encourages division. division is heard from heads of religious groups, unions, pacs and so many more. united we stand, divided we fall. we are crumblin ever so slowy, but crumble we are and will soon be in last place if we should be lucky to exist as a nation by the end of the 21st century.

[sandforp]

Maybe we should look at all the tax breaks American companies get to offshore our manufacturing jobs. Maybe we should look at the NAFTA fiasco and make a few changes.

[porcine_aviator]

America, this train has been coming at us for a long time. Instead of getting off the tracks, you continue to stare into the lights of the freight train.

America, you have allowed yourself to be dazzled with fake investment ideas (homes for all, and skyrocketing prices), fake military triumphs (Mission accomplished!), and a totally fake culture that idolizes the stupid, the incompetent, and the lazy.

America, you keep voting people into office who won't do a blessed thing to reduce government spending, and who will instead engage in the most egregious form of wasteful porkbarrel spending.

America, you tolerate cheats and liars everywhere, in corporations, in government, even in our houses of worship. When a man steals $20 of beer, he is punished severely. When a man (Henry Paulson) steals $700 billion dollars from the taxpayers to keep his golfing buddies' businesses afloat, he's just "doing his job".

It is our destruction of values that is behind all of our problems. America, YOU must decide to abide in decency, and then hold yourself and your government accountable. If you won't then we will become a 3rd world backwater laughingstock, and it will be because YOU did nothing. Bush, Obama, all are to blame, but the only reason these crooks did their dirty deeds is because you ALLOWED it to happen!

[Lifeson2112]

Our loss of freedom is beginning to show. Obama wants us on a more even playing field with the rest of the world. Looks like he's succeeding in bringing us down to their level. This is truly sad what has become of this nation. Both political parties are guilty of this for spending us into oblivion just for votes. Pathetic.

[tsigili]

It will continue to spiral downward, because government has failed to recognize the key element that is missing, and restore it.