David Rubenstein: U.S. Is Losing Its Competitive Edge - Fortune
The Carlyle Group co-founder says the U.S. threatens to fall behind China, thanks to our growing deficit and government debt. Meanwhile, Treasury Secretary Tim Geithner downplays the threat of a looming trade war.
Ever since China's economy surpassed Japan's this past summer, speculation has escalated over when the country might take over the United States as the world's largest. The estimate has ranged from 2030 to 2035, the latter date being the one Carlyle Group co-founder David Rubenstein highlighted at a forum Wednesday in Washington DC of some of the day's biggest newsmakers.
Rubenstein says the U.S. faces the harsh possibility of losing some of its competitive edge amid the rapid rise of emerging economics – in particular, China. The U.S. overwhelmingly dominates the private equity and venture capital industries worldwide, the prominent investor notes. China and other emerging economies have become eager players and companies such as private equity firm Carlyle have increasingly been spending more time in these regions. To date, Carlyle has invested $3 billion in China, he says.
But several pressing factors are threatening America's competitive edge. Rubenstein lists huge deficits and government debt, high unemployment, and widening income disparities. More at link: