In order to regain competitiveness in the global marketplace and reduce the trade imbalance, the US needs to make bold investments in areas that will make a significant difference in US productivity. These include:
Transportation infrastructure and integration. Massive upgrade to the nation's rail infrastructure is needed, as are better integration between air transport, passenger rail, and local public transit.
Education. Education levels keep declining, largely due to inadequate investment in teachers and facilities, but also due to poverty and crime in many areas.
Reducing crime and incarceration. A large fraction of our population ends up in prison at some point, robbing our economy.
Reducing alcohol and drug-related school/work absence.
Cutting health care cost in half.