Morning Joe is rewinding 2012 during the holiday season, replaying this year's segments that stand out. One segment that stood out this morning was a discussion between Steve Rattner, Dan Senor and Michael Porter, a professor at Harvard Business School. Porter said that large US businesses are global now and the market is global. Other countries that were once economic basket cases are now removing regulations and freeing their businesses to compete globally. At the same time, the US is burdening US companies at home with regulations and taxes, so US companies are moving more operations overseas.
Rattner tried to explain the over-seas' operations as the result of low wages in competing, emerging countries, but Porter said that US companies can compete against low wages with high productivity and efficiency if they are not burdened by high costs which result from too much regulation and too high taxes. I would add that regulations in the US have favored large, established, politically-connected US companies while harming smaller, politically-disconnected US companies, and this helped large politically-connected companies doing business in the US, but the extra costs that the large companies have been able to bear and make a competitive advantage at home are a disadvantage in the global market.
Until the US can reform our statist system, and this entails a tax and regulation system which is killing US companies, US companies will continue to take operations overseas.