CaGOPatriot
Craig Williams
The American middle class is "hollowing out" as the U.S. economy fails to compete effectively in a globalized world, Harvard economist Michael Porter told CNBC's "Closing Bell" this week.
"America used to be a uniquely productive, low-cost place to do business," Porter said on Thursday. "We had efficient infrastructure. We had limited regulation. We believed in the market."
But bit-by-bit this position has eroded. Regulatory costs have gone up, Porters said, the legal system is more cumbersome, infrastructure is eroding and the country is falling behind on skills.
That means the many Americans do not have the skills needed to earn a decent living and for the first time in 50 or 60 years, incomes are stagnating and the middle class, which Porter called the bedrock of America, is "hollowing out."
[ More From CNBC: Scenes From Fashion Week -- Lingerie Edition ]
"Being an American doesn't mean that you're guaranteed a high wage," in the era of globalized competition, Porter said. "You have to be productive, and we have to create a very low-cost efficient place to do business and we've let all that slip in America."
The country's budgetary problems are largely a symptom of this lost competitiveness and economic weakness. Without rising incomes and an improvement in the fundamental performance of the economy, there's been less tax revenue, he said.
(Read More: Automatic Spending Cuts Are a Joke: Druckenmiller)
To offset declining incomes, the government has had to make promises to help pay for health care, retirement and housing, but the economy can't afford them because it isn't performing, according to the economist.
America can return to competitiveness, Porter said, if the corporate tax code becomes more efficient, there's a sustainable budget compromise and the U.S. takes advantage of the shale revolution to move toward energy independence.
(Read More: Cheap Energy Luring Manufacturing Back to the US)
"Technology has given us this wonderful opportunity to have low energy costs," Porter said. "We have to seize that, rather than keep debating and discussing and fighting over it."
---------------------------------------------------------------------------------------------------------
There is no doubt that the Democrats and their regulations have ruined the business climate here in the US. India and China let business be run without the expensive regulations that liberals have passed here over the last 40 years. Getting rid of unions and the epa, osha and the FTC and their consumer protection laws would make the US competative again. Ronald Reagan tried to stop the unions but Democrats fought him at every turn. But red states are passing right to work laws so companies don't have to pays so much for benefits and the over paid and lazy union workers can be fired and productive workers can be hired. Liberals can;t argue with this because it is true.
"America used to be a uniquely productive, low-cost place to do business," Porter said on Thursday. "We had efficient infrastructure. We had limited regulation. We believed in the market."
But bit-by-bit this position has eroded. Regulatory costs have gone up, Porters said, the legal system is more cumbersome, infrastructure is eroding and the country is falling behind on skills.
That means the many Americans do not have the skills needed to earn a decent living and for the first time in 50 or 60 years, incomes are stagnating and the middle class, which Porter called the bedrock of America, is "hollowing out."
[ More From CNBC: Scenes From Fashion Week -- Lingerie Edition ]
"Being an American doesn't mean that you're guaranteed a high wage," in the era of globalized competition, Porter said. "You have to be productive, and we have to create a very low-cost efficient place to do business and we've let all that slip in America."
The country's budgetary problems are largely a symptom of this lost competitiveness and economic weakness. Without rising incomes and an improvement in the fundamental performance of the economy, there's been less tax revenue, he said.
(Read More: Automatic Spending Cuts Are a Joke: Druckenmiller)
To offset declining incomes, the government has had to make promises to help pay for health care, retirement and housing, but the economy can't afford them because it isn't performing, according to the economist.
America can return to competitiveness, Porter said, if the corporate tax code becomes more efficient, there's a sustainable budget compromise and the U.S. takes advantage of the shale revolution to move toward energy independence.
(Read More: Cheap Energy Luring Manufacturing Back to the US)
"Technology has given us this wonderful opportunity to have low energy costs," Porter said. "We have to seize that, rather than keep debating and discussing and fighting over it."
---------------------------------------------------------------------------------------------------------
There is no doubt that the Democrats and their regulations have ruined the business climate here in the US. India and China let business be run without the expensive regulations that liberals have passed here over the last 40 years. Getting rid of unions and the epa, osha and the FTC and their consumer protection laws would make the US competative again. Ronald Reagan tried to stop the unions but Democrats fought him at every turn. But red states are passing right to work laws so companies don't have to pays so much for benefits and the over paid and lazy union workers can be fired and productive workers can be hired. Liberals can;t argue with this because it is true.
