Note to users. If you're seeing this message, it means that your browser cannot find this page's style/presentation instructions -- or possibly that you are using a browser that does not support current Web standards. Find out more about why this message is appearing, and what you can do to make your experience of our site the best it can be.

Science 8 November 1991:
Vol. 254. no. 5033, pp. 811 - 815
DOI: 10.1126/science.254.5033.811
Prev | Table of Contents | Next

Articles

Myths and Realities of U.S. Competitiveness

PAUL A. KRUGMAN 1

1 Professor of economics at the Massachusetts Institute of Technology, Cambridge, MA 02139

Most discussion of U.S. competitiveness misstates the problem, focusing on the trade deficit and on fears that an economy whose productivity lags that of its rivals will face economic disaster. In fact, strong automatic forces ensure that the U.S. economy will remain in business and indeed roughly balance its trade even if its productivity performance is dismal. The real issue is the effect of international competition on the mix of goods that the U.S. economy produces. In some industries high productivity is an effect as well as a cause of international competitiveness. There is an intellectually respectable but politically problematic case for government action to create or preserve advantage in such industries.

To Advertise     Find Products

Science. ISSN 0036-8075 (print), 1095-9203 (online)