The third way business can and should improve U.S. competitiveness is by stopping self-interested actions that weaken the commons. Many such actions involve government relations and corporate lobbying. When firms seek special permits, tax breaks, or regulatory exceptions, they distort
competition and raise regulatory complexity. Each plea seems profitable to the company or industry involved. But taken together, such pleas have created an exception-riddled corporate tax code, a rat's nest of earmarks and subsidies in the federal budget, and delays in crucial legislation. Self-interested efforts by one company make others feel they must do the same. The overall cost and complexity of doing business rises. More important, in the long run, the resulting public cynicism erodes society's support for business. Business should advocate policies that improve the U.S. business environment rather than pursue narrow self-interest, which often backfires.
To understand why that's critical to America's future, we need to be clear on what competitiveness means. The U.S. is competitive to the extent that firms operating here can compete successfully in the global economy while supporting high and rising living standards for the average American. Doing one without the other means we aren't really competitive. A high-wage economy like the U.S. can achieve both only by being a highly productive location, one where firms can create innovative, distinctive products and produce them efficiently.
http://management.fortune.cnn.com/2012/10/15/porter-rivlin-economy-fix/
competition and raise regulatory complexity. Each plea seems profitable to the company or industry involved. But taken together, such pleas have created an exception-riddled corporate tax code, a rat's nest of earmarks and subsidies in the federal budget, and delays in crucial legislation. Self-interested efforts by one company make others feel they must do the same. The overall cost and complexity of doing business rises. More important, in the long run, the resulting public cynicism erodes society's support for business. Business should advocate policies that improve the U.S. business environment rather than pursue narrow self-interest, which often backfires.
To understand why that's critical to America's future, we need to be clear on what competitiveness means. The U.S. is competitive to the extent that firms operating here can compete successfully in the global economy while supporting high and rising living standards for the average American. Doing one without the other means we aren't really competitive. A high-wage economy like the U.S. can achieve both only by being a highly productive location, one where firms can create innovative, distinctive products and produce them efficiently.
http://management.fortune.cnn.com/2012/10/15/porter-rivlin-economy-fix/
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