The Good News
The United States already measures at the top or close to the top of nearly every global measure of economic competitiveness. A comprehensive 2008 Rand Corporation study found that the U.S. leads the world in scientific and technological development. The U.S. now accounts for a third of the world’s research-and-development spending. Partly as a result, the average American worker is nearly 10 times more productive than the average Chinese worker, a gap that will close but not go away in our lifetimes.
Full op-ed by David Brooks in The New York Times.
Thanks. I needed that.
I’m afraid Research & Development (R&D) will slow as the tax rates on capital rise. The decision to invest in R&D is based on a risk/reward ratio. When the rewards from risk are lowered through taxes, fewer risks will be taken.
How long will this last?
And if we study just our automotive sector, how do we stack up? I would submit that as we see more and more government/liberal intrusion into the market, we will lose our advantages at an unprecedented rate.
I agree, Virginia, we will start to lose our advantages if the government intrusion into the market isn’t thwarted soon enough.