Whats Wrong with Americas Economy?

“What’s Wrong with America’s Economy?”

Through the semester I have learned many new concepts and theories related to economic principles. The article, “What’s Wrong with America’s Economy?,” from The Economist, talks about how unhappy Americans are with the current politics and the economy of the United States. The article discusses two failings that explain possible reasons to America’s hurting economy; the competitiveness canard and when growth does not bring jobs.

The first reason the article “What’s Wrong with America’s Economy” discusses for the failing economy is “the competitiveness canard.’ The article tells us that President Obama considers Americas challenges in terms of “competitiveness.” With threats of China’s quickly growing economy, President Obama argues that America’s success depends on “out-innovating, out-educating and out-building” China, but many people disagree with this idea. Some say that it is neither the lack of competitiveness, nor the external threat from China that's holding the United States economy back, but rather it is the unwillingness to address the public finance imbalances. The article also says that “too much of the “competitiveness” talk is a canard—one that justifies misguided policies and diverts attention from the country’s real to-do list.”

A much talked about matter on the country’s to-do list is the sorting out of our public finances. Other than Japan, the United States is the only country that currently does not have a plan for controlling our public finances. For years, our politicians have not paid close attention to our public finances, but they have finally come around to realize that it needs help. The problem with this is the Democrats and Republicans cannot compromise on a deal. Some say that President Obama has done absolutely nothing to cut the United States deficit and others disagree. The rivalry over the deficit debate today could end up hurting the economy. Although it will be hard for...