Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

The Fourth Branch of Government is Killing Our Competitiveness

Politics / US Politics Jun 18, 2013 - 01:37 PM GMT

By: Money_Morning

Politics

Greg Madison writes: The United States claims a position as a world leader in many fields. And in a few of those fields, it still is. We like to think of ourselves as leaders in business, the free market, the entrepreneurial spirit. But the country is falling further and further behind in key competitive areas, giving up a lot of ground in the past 10 to 13 years.


The numbers are not encouraging, and as a consequence no one pays much attention to them. Don't look to party politics, though. The decline has continued through Republican and Democratic administrations and Congresses alike.

Our Competitive Edge Is Slipping Further Away
From the World Economic Forum:

1 - U.S. ranking on the 2008 - 2009 Global Competitiveness Index

7 - U.S. ranking, out of 144 countries on the 2012 - 2013 Global Competitiveness Index

9 - U.S. ranking for its legal system and property rights in 2000

33 - U.S. ranking for its legal system and property rights in 2010 on the Fraser Institute's Economic Freedom Index

433 - Total number of days it takes in the U.S. to start a business, register a property, get and import/export license and enforce a contract.

368 - Total number of days it took to do the same thing in 2006

Some argue that more government intervention, more stimulus, would get things moving again. Others argue that government should pull back completely, let the markets work themselves out, scale back regulations. But what if none of these solutions is the key to getting the country back to the top?

According to Niall Ferguson, the blame lies with the character and quality of our institutions. Our institutions, government and otherwise, are there to ensure the wheels of society keep turning. Courts of law, legislatures, banks, market exchanges, and so on. Our institutions are decaying, bloating and rotting, subject to Byzantine laws and regulations and a hopelessly top-heavy bureaucracy. But just how well-entrenched is this bureaucracy?

The Fourth Branch
As schoolchildren, Americans are taught that there are three branches of government: the Legislative, the Executive, and the Judicial. But it's become apparent that there are actually four branches, once you consider the Administrative branch. This purported branch would consist of Cabinet departments and all the bureaucracy and special interests flowing therefrom.

When our Constitution was put into effect, President George Washington had six Cabinet-level departments - including the Vice President of the United States. In the year 2013 there are are fully 16. In 224 years, we've abolished or consolidated just four Cabinet departments. And at various times, another 19 additional Cabinet departments have been proposed or considered. From each of these cabinet departments proceeds a virtual fiefdom, with a great deal duplication of duties and roles across departments.

There are few, if any, checks and balances on this Administrative branch. The patience of judges with a legion of lawyers might be the only one. For the most part, the lawyers, the compliance departments, and the bureaucracy operate largely unchecked. Their indefinite yet constant interaction with special interests and the other three branches of government completes the depressing picture. And it's all to our great detriment.

It's Not Too Late to Change
The prevailing regulations are so complex, and so poorly thought through, that the system becomes vulnerable to abuse. Those looking for evidence need look no further than the parade of 10,000+ page legislation passed over the years. No sensible person would argue for the complete repeal or abolition or regulations, but those countries that at least make an attempt at sensible regulation and laws are beating the United States in the competitiveness stakes.

The ease of conceptualizing, planning, and then opening a business in the United States has become an almost hopelessly fraught affair, taking an average of 433 days. Why not just up sticks and take advantage of the more favorable climate in Canada or the United Kingdom? Some decide to do just that, and it's our loss.

A country's economy becomes competitive when its institutions are improved, Ferguson says. Consider for instance, a developing country with a new multiparty democracy, or a newly independent judiciary.

Our institutions are old, it's true, but not as old as in other countries. And there's nothing except inertia stopping us from reforming them. The American system affords the chance to make leaner, more impactful regulations that are designed to tackle issues and enforce the law. In this way, we can provide opportunities for our citizens - not just the lawyers.

Source :http://moneymorning.com/2013/06/17/the-fourth-branch-of-government-is-killing-our-competitiveness/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules