An economy doing half its job

This document discusses the article An economy doing half its job in Harvard Business Review of 2014

For a copy of the article select: http://www.hbs.edu/competitiveness/pdf/an-economy-doing-half-its-job.pdf

Executive summary - page 1

We ask in particular, how can we create a U.S. economy in which firms both thrive in global competition and lift the living standards of the average American?

This are two completily opposite objectives. From world economy point of view you should remove the global objective.

In gauging the future of U.S. competitiveness, the survey respondents were pessimistic on balance.
By a ratio of three to two, those who foresaw a decline in U.S. competitiveness in the next three years outnumbered those who predicted an improvement.

This issue is what is competiviveness.

• Do you mean in price - as long as you consider one country that it not so much a problem. Worldwide that is a problem for some countries.
• Do you mean in product performance? The more global you consider the more difficult.

A Pivotal moment - page 3

Page 4:

Shortsighted executives may be satisfied with an American economy whose firms win in global markets without lifting U.S. living standards.

The general rule should be American companies work in american markets. Foreign companies work in foreign markets.

But any leader with a long view understands that business has a profound stake in the prosperity of the average American.

That is 100% correct. In stead of American read: World citizin. The problem is that most companies only think about their interest and not about the world in general. Companies should think more local and less global.

Thriving citizens become more productive employees, more willing consumers, and stronger supporters of probusiness policies.

Thriving citizens have many to spend, which will benefit the local economy.

We agree strongly with this view: businesses cannot succeed for long while their communities lanquish

Workforce Skills page 21

The OECD data discussed on page 14—showing a growing U.S. disadvantage in adult competencies—point to weaknesses not only in America’s K–12 education system but also in the way we develop skills after high school and on the job.

The issue is not directly in the education system. The issue is in diverse job opportunities throughout a region.

Page 24:

Many students choose careers with little hard information, based on hearsay, peer influence, parental input, and casual preferences. The absence of sufficient counseling resources across the high school and community, professional, and technical college systems compounds those problems.

In the present day evolving and changing global world it is very difficult to follow a secure career path specific in manufacturing.

Path Forward - page 32>

A truly competitive U.S. economy would lift both firms and citizens.

What is a truly competitive economy?
If you want "to lift" all firms and all citizens carefull planning is required. To be more competitive, with the emphasis on price is not the best solution.

Some have argued that global and technological developments make economic stagnation inevitable for many in America.

Globalization can have severe local consequences specific if renewed global manufacturing has in mind: automatisation, increase of scale and lower prices.

We see a very different path forward: invest and set policies to make Americans so productive that they can command higher wages even in the face of these dynamics.

How do you improve productivity?

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