If the U.S. wishes to consume fewer imports, it needs to become more competitive. Unfortunately, the kind of political courage required to get to the source of the problem by pointing out that while American workers and companies are world class in some industries, they are not world class in others is rare.
A President needs a bold and coherent vision and the leadership capacity to rally the nation via investments in education, science, etc. Transformational leaders along the lines of an FDR, JFK, or Reagan who could do so are also not common. Given the absence of transformational leadership, it is not too surprising that the nation lacks a broad vision and appetite for risktaking in the critical sectors of tomorrow ranging from space to alternative energy. Instead, the nation's overall aspirations have continued to narrow. As a result, the U.S. is at growing risk of becoming a status quo state, even as the world around it continues to change. With enormous fiscal imbalances looming in the medium- and long-term, the current lack of vision and boldness could well result in a temptation to make drastic but shortsighted reductions in investment, in a bid to avoid politically contentious but essential structural changes to taxes and mandatory spending programs. Such an outcome could further limit the nation's strategic flexibility. Today, the U.S. still has a lot of flexibility. Maintaining a business as usual course will lead to far less flexibility tomorrow. The opportunity cost will be the increased possibility that another country or group of countries will achieve qualitative breakthroughs that make it possible to leapfrog the U.S. in one or more critical sectors or technologies, some of which may have military as well as consumer implications.
Finally, a President also has only limited latitude. If the nation is to become more competitive, the private sector will also need to join the effort. Corporate R&D will have to increase markedly. Yet, with the economy still recovering, the private sector remains abnormally risk-averse, focusing on increased short-term profits via cost minimization, but at the risk of foregoing much larger future profits due to reduced R&D, etc.