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Declining U.S. Competitiveness
For a long time, the United States was ranked as having the world’s most competitive economy, according to the Swiss-based IMD World Competitiveness Center. But we fell behindSingapore and Hong Kong in 2010.
But at least the U.S. stayed in the top five for several years, which was a decent result.
Unfortunately, the U.S. then fell further back during the Trump years.
And, as you can see from this graphic, America continues to languish during the Biden years.
To read the full report and see all the data, click here.
While my main focus is America’s decline, it is also interesting to see what’s happening with other nations.
- It’s sad (but not surprising) to see Hong Kong’s decline.
- It’s predictable that Switzerland ranks near the top.
- Same with Singapore.
- And Taiwan.
- It is surprising (but not too surprising) to see Denmark on top.
They are not shown in the above graphic, but nobody should be surprised that the last-place nation is Venezuela. Or that Argentina is the next-to-last country.
P.S. The IMD report does not measure economic liberty, though there is a correlation with the IMD results and the results from Economic Freedom of the World and the Index of Economic Freedom.
Fiscal Follies: Texas vs. California, Part VIII
I have a seven-part series (here, here, here, here, here, here and here) comparing Texas and California, mostly to demonstrate that the not-so-Golden State has hurt itself with excessive taxation and a bloated government.
Today, we’re going to augment our comparisons by looking at a very practical example of how California’s approach is much worse.
The National Association of State Budget Officers publishes an interesting document (at least if you’re a budget wonk) entitled State Expenditure Report.
And if you to to Table 2 of that report, you’ll find the most important measure of state fiscal policy, which shows how fast the burden of government spending increased over the past two years.
Lo and behold (but to no one’s surprise), California politicians increased the spending burden much faster than their Texas counterparts.
As you can see, both states were irresponsible the first year, thanks in large part to the all the pandemic-related handouts approved by Trump and Biden.
But California was twice as bad. Politicians in Sacramento used federal handouts to finance a grotesque spending binge (whereas the spending binge in Texas deserves a more mild adjective, such as massive).
Both states were better the second year, with California’s spending burden climbing by 2.2 percent in 2022 and Texas actually delivering a spending cut.
Remember, though, that the spending burden exploded between 2020 and 2021, so the 2022 numbers only look reasonable compared to the bloated trendline.
Now let’s consider whether California’s grotesque spending binge had negative consequences.
The answer is yes, according to a Wall Street Journaleditorial.
Gov. Gavin Newsom last year touted a $100 billion budget surplus as evidence of California’s progressive superiority. He was less triumphant…when announcing a $22.5 billion deficit in the coming year, a contrast to Texas’s record $32.7 billion surplus. …California’s problem, as usual, is that Democrats baked too much spending into their budget baseline.
They expanded Medicaid to undocumented immigrants over the age of 50, enacted universal pre-school and school lunches, extended paid family leave by two weeks, and boosted climate spending by $10 billion. …Much of Texas’s surplus this year owes to surging sales-tax revenue from inflation and population growth—i.e., Californians moving to Texas and spending their tax savings. Mr. Newsom claimed Tuesday that California has a more “fair” tax system than the Lone Star State and that Texans pay more in taxes. This is disinformation. According to the Census Bureau, California’s per capita state tax collections ($6,325) were second highest in the country in 2021 after Vermont. Texas’s ($2,214) were second lowest after Alaska. …California’s budget problems will grow as more of its rich and middle class move to lower-tax states like Texas.
Per-capita state tax collections are the most striking numbers in the editorial. The average Californian is paying $6,325 for state government, nearly three times as much as the $2,214 that is paid by the average Texan.
Does anyone think that Californians are getting nearly three times as much value as their counterparts in the Lone Star State?
Based on how people are voting with their feet, the answer is obvious. But if you prefer more technical measures of state government value, California loses that contest as well.
TRY BORROWING AT A BANK WITH A FINANCIAL CONDITION LIKE THE USA HAS:
The problem in Washington is not lack of revenue but our lack of spending restraint. This video below makes that point. WASHINGTON IS A SPENDING ADDICT!!!
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The Honorable John Barrasso of Wyoming
United States Senate
Washington, D.C. 20510
Dear Senator Barrasso,
On September 16, 2021 my post “46 REPUBLICAN SENATORS VOW NOT TO HELP DEMOCRATS RAISE THE DEBT CEILING (HERE WE GO AGAIN!!!!!)” and you were one of the 46 Senators who pledged not to raise the debt ceiling but you folded like a wet leaf just like I predicted:
I have written before about those heroes of mine that have resisted raising the debt ceiling but in the end I have always been disappointed and here we go again!
But first let me give you a taste of something I wrote about 10 years ago on this same issue!
Why don’t the Republicans just vote no on the next increase to the debt ceiling limit. I have praised over and over and overthe 66 House Republicans that voted no on that before. If they did not raise the debt ceiling then we would have a balanced budget instantly. I agree that the Tea Party has made a difference and I have personally posted 49 posts on my blog on different Tea Party heroes of mine.
What would happen if the debt ceiling was not increased? Yes President Obama would probably cancel White House tours and he would try to stop mail service or something else to get on our nerves but that is what the Republicans need to do.
I have written and emailed Senator Pryor over, and over again with spending cut suggestions but he has ignored all of these good ideas in favor of keeping the printing presses going as we plunge our future generations further in debt. I am convinced if he does not change his liberal voting record that he will no longer be our senator in 2014.
I have written hundreds of letters and emails to President Obama and I must say that I have been impressed that he has had the White House staff answer so many of my letters. The White House answered concerning Social Security (two times), Green Technologies, welfare, small businesses, Obamacare (twice), federal overspending, expanding unemployment benefits to 99 weeks, gun control, national debt, abortion, jumpstarting the economy, and various other issues. However, his policies have not changed, and by the way the White House after answering over 50 of my letters before November of 2012 has not answered one since. President Obama is committed to cutting nothing from the budget that I can tell.
I have praised over and over and over the 66 House Republicans that voted no on that before. If they did not raise the debt ceiling then we would have a balanced budget instantly. I agree that the Tea Party has made a difference and I have personally posted 49 posts on my blog on different Tea Party heroes of mine.
46 Republican Senators Vow Not to Help Democrats Raise the Debt Ceiling
All but four Republican senators have signed a pledge that they will not vote to raise the debt ceiling, sending another warning to Democrats that they are on their own on the pressing issue.
Sen. Ron Johnson (R-WI) circulated a letter during the chamber’s vote-a-rama on the $3.5 trillion budget resolution Wednesday, signing up a majority of his fellow Republicans in an effort to link the Democrats’ proposed spending package with the statutory debt limit imposed on the federal government by Congress, which covers spending that has already been approved and must be paid by the U.S. Treasury.
In the letter, which is addressed to “Our Fellow Americans,” the Republican signatories claim that Democrats are responsible for increased federal spending and so must be responsible for raising the debt limit. “We will not vote to increase the debt ceiling, whether that increase comes through a stand-alone bill, a continuing resolution, or any other vehicle,” the letter says. “Democrats, at any time, have the power through reconciliation to unilaterally raise the debt ceiling, and they should not be allowed to pretend otherwise.”
The Republicans who didn’t sign the letter are Sens. Susan Collins of Maine, John Kennedy of Louisiana, Lisa Murkowski of Alaska and Richard Shelby of Alabama.
Why now: A two-year suspension of the debt ceiling expired at the end of July, forcing the U.S. Treasury to begin taking “extraordinary measures” to keep paying its bills as it waits for Congress to either raise or suspend the limit before the country is forced to default. Democrats opted not to include an increase in the debt ceiling in their budget resolution, which would have made it possible to raise the limit without Republican support, though they still have the option of revising the resolution to include such a provision.
What Democrats say: Democrats point out that much of the increased debt in recent years was produced during former President Trump’s administration. “I cannot believe that Republicans would let the country default,” Senate Majority Leader Chuck Schumer (D-NY) said Wednesday. “It has always been bipartisan to deal with the debt ceiling. When Trump was president I believe the Democrats joined with him to raise it three times.”
President Biden told reporters Wednesday that trillions in debt were added “on the Republicans’ watch” but said he was confident that the GOP would act in time. “They are not going to let us default,” he said.
The bottom line: No one expects Congress to allow the U.S. to default, but it looks like we could be in for a high-stakes game of chicken in the coming weeks — and the markets are starting to notice. According to Reuters Wednesday, “Some U.S. Treasury bill yields are beginning to reflect concerns that lawmakers may wait until the last minute to increase or suspend the debt ceiling.”
Will you stand up against the Democrats in the future and make the Government ONLY SPEND WHAT IT BRINGS IN? We are becoming an entitlement society and we must stop this trend!!!!
Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, everettehatcher@gmail.com, http://www.thedailyhatch.org cell 501-920-5733
PS: In 2010 we had a group of conservatives get elected in the House and many of them stood up to President Obama when he wanted to raise the debt limit and I praised these 66 heroes of mine on my blog in 2011 and Representative Andy Harris of Maryland was one of those. Here is what I wrote about him:
Sixty Six who resisted “Sugar-coated Satan Sandwich” Debt Deal (Part 37)
This post today is a part of a series I am doing on the 66 Republican Tea Party favorites that resisted eating the “Sugar-coated Satan Sandwich” Debt Deal. Actually that name did not originate from a representative who agrees with the Tea Party, but from a liberal.
Rep. Emanuel Clever (D-Mo.) called the newly agreed-upon bipartisan compromise deal to raise the debt limit “a sugar-coated satan sandwich.”
“This deal is a sugar-coated satan sandwich. If you lift the bun, you will not like what you see,” Clever tweeted on August 1, 2011.
August 1, 2011
Rep. Harris Votes Against the Debt Ceiling “Deal”
Washington, DC – Today, Rep. Andy Harris voted against the debt ceiling increase. The plan did not require passage of a balanced budget amendment, which Rep. Harris feels is essential to bringing permanent common sense accountability to Washington.
“A balanced budget amendment is the only way to make sure the federal government spends what it takes in and lives within its means,” said Rep. Andy Harris. “Over the past few weeks I have repeatedly voted for reasonable proposals to raise the debt ceiling that included passage of a balanced budget amendment. But I didn’t come to Washington to continue writing blank checks. Maryland’s families and job creators sent me to Congress to permanently change the way Washington does business. I appreciate Speaker Boehner’s remarkable, historic efforts to craft a proposal to solve the debt ceiling issue. But today’s debt ceiling deal just doesn’t go far enough to build an environment for job creation by requiring passage of a balanced budget amendment to bring permanent common sense accountability to Washington.”
Currently, the U.S. Government has a national debt of $14.3 trillion and runs an annual deficit of $1.65 trillion.
Andrew Peter Harris (born January 25, 1957) is an American politician and physician who has been the U.S. Representative for Maryland’s 1st congressional district since 2011. The district includes the entire Eastern Shore, as well as several eastern exurbs of Baltimore. He is currently the only Republicanmember of Maryland’s congressional delegation. Harris previously served in the Maryland Senate.
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Andy Harris
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| Member of the U.S. House of Representatives from Maryland‘s 1st district |
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| Assumed office January 3, 2011 |
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| Preceded by | Frank Kratovil |
| Member of the Maryland Senate | |
| In office 1999 – January 3, 2011 |
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| Preceded by | Vernon Boozer (9th) Norman Stone (7th) |
| Succeeded by | Robert Kittleman (9th) J.B. Jennings (7th) |
| Constituency | 9th district (1999–2003) 7th district (2003–2011) |
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