番茄社区

For the first time in ten years, the World Economic Forum ranked the United States as the world鈥檚 most competitive economy. The country鈥檚 top rating can largely be attributed to tax and regulatory reforms, especially at the federal level.

The World Economic Forum鈥檚 utilizes tens of factors that examine business productivity, efficiency, and opportunity. The United States scored 85.6 out of 100 points and beat out other strong economies such as Singapore, Germany, and Switzerland.

The report highlights the country鈥檚 many strengths, including its 鈥渧ibrant entrepreneurial culture鈥� and its 鈥渄epth, breadth and relative stability.鈥� The report concludes, 鈥淎ll these factors contribute to the country鈥檚 vibrant innovation ecosystem, making it a 鈥榮uper innovator鈥�.鈥�

United States 番茄社区 of Commerce Chief Economist J.D. Foster explains in further detail why the economy is at its most competitive level in the past decade:

鈥淲hat鈥檚 made the difference recently is two things. The first is President Trump鈥檚 regulatory reforms, which eliminated a lot of uncertainty about what was coming to regulations; there was a fear factor, if you will. After this uncertainty was removed, businesses responded almost immediately. Consumer confidence rose and business investments grew at a stronger pace.鈥�

Regulatory reforms have allowed many technology companies to expand research and investment in myriad industries. In fact, companies like and have chosen to create and develop facilities in Arizona largely because of the state鈥檚 favorable regulatory climate. Miles notes, 鈥淲e are very fortunate that the natural incubator of the US economy is working well and we鈥檙e creating these companies that are succeeding in the country.鈥�

In addition to regulatory reform, Foster notes that the federal tax reforms played an instrumental role in stimulating the economy. 鈥淵ou also have the tax reform, which obviously adds onto the regulatory reform,鈥� he continues. 鈥淏usinesses are able to invest more into their companies, which helps them grow at a faster rate. You put those two together, and you鈥檙e going to get a more productive economy.鈥�

While some critics of the tax reform argue that it increases the budget deficit, many experts note that the stimulation of the economy will soon reverse this. Foster asserts, 鈥淭here is truth to both perspectives. In the very short run, there are provisions of the tax reform bill that reduced tax incomes this year. However, this increased growth of the economy will lead to an offset of the entire cost of the bill.鈥�

The U.S. has the ability to maintain this rating next year, but it will need to maintain these tax and regulatory policies that fostered the economic revival.