SWOT Analysis of the U.S. Economy economy has historically been the strongest economy in the world. The economy boasts leadership in areas such as innovation, entrepreneurship, higher education, communications infrastructure, capital markets, and business management (Porter et al., 2016). These aspects make the U.S. economy an envy of many countries around the world. In addition, the economy has demonstrated quite impressive recovery since the devastating 2008/2009 recession. Despite these strengths, the economy has been deteriorating in the last one decade or so, with many of the economic indicators declining to disturbing levels. Indeed, the competitiveness of the economy has been eroding since the late 1990s (Porter et al., 2016). There has been reduced growth in economic output, productivity, investment, and employment. Per capita and household income have declined or stagnated, small businesses have been struggling, startups have been lagging, and inequality has increased. Also, there have been weaknesses in areas such as K-12 education, health care, taxation, transportation infrastructure, as well as political governance. These weaknesses have hindered productivity and prosperity.The weaknesses pose a major threat to the country. First, the weaknesses have increasingly offset the gains the economy has made over the years. More fundamentally, the erosion of the competitiveness of the economy means that in the future businesses may not be able to compete effectively in the domestic and global economy, while at the...

Achieving the American dream may be a challenge for most citizens in the future. This presents a risk to the political, social, and economic stability of the country.
Porter et al. (2016) identify a number of areas that should be addressed if the U.S. is to maintain and enhance its economic competitiveness in an increasingly dynamic global environment. They advocate for businesses as well as federal, state, and local governments to work together to restore the competitiveness of the economy. Businesses must pay greater attention to training and development opportunities, compensation, public education, economic development, as well as community building. State and local governments must encourage cross-sector collaborations, develop workforce skills, revitalize local education, promote entrepreneurship, improve infrastructure, and craft regional economic strategic plans. At the federal level, there must be reforms in corporate taxation, immigration, international trade, communications and energy infrastructure, health care, and public education. Addressing these areas can significantly improve the business environment and the standards of the average citizen, thereby reversing the deteriorating competitiveness of the U.S. economy.

Tax Reform

Taxation is one of the major factors, according to Porter et al. (2016), that have negatively affected the competitiveness of the U.S. economy. Both corporate and personal taxation…