One part of the competitiveness picture which they did not discuss is cost. There are well educated people in India and China who will work for a fraction of what American's get. Unless that problem is resolved the jobs will flow out of America.
That's part of the problem yes, but due to the problem of non tradables (homes, haircuts, dinner etc), they can afford to work for a fraction of what their american counterpart works for.
Wages are downward rigid (who in their right mind takes a pay cut), especially so when the cost of goods is high.
I agree with you and I'm not suggesting that Americans take a pay cut. But we do need some way of equalizing things. Right now goods and services are flowing into America while dollars and jobs are flowing out. In the short term things may look good because of the abundance of low cost imported goods and services. In the long term though it looks bad as we lose not only jobs but whole industries.
Looks like we're getting off topic. Sorry about that.