Henry Paulson, U.S. Treasury Secretary, is disturbed by the belief that U.S. capital markets are “losing their competitive edge in intensifying global competition,” and wants to hold a conference to address the impact of globalization and the U.S. markets. So the U.S. is no longer as attractive a place to invest as it once was – although it still remains abundantly popular.

Why doesn’t he just convene a meeting and ask for a federal bailout, or price support in one manner or another? An ROI guaranteed by the government? Hell, that’s what the Steel makers do. Or the auto manufacturers. Or any other industry/market which has lost its competitive edge in the wake of increased foreign competition. No, it appears that Paulson may be on the right track – or at least – not the wrong track (via WSJ $):

Mr. Paulson has repeatedly expressed concern about the regulatory and legal climate in the U.S. and its impact on the ability of U.S. companies and financial markets to compete in a global economy.
The aim of the conference, said Mr. Steel, is to begin a discussion that may eventually lead to recommendations or policy changes.

Look: it’s no surprise that SarbOx, and other ham-fisted regulatory acts, have been detrimental to US businesses. The appropriate response is to examine the legal and regulatory environment, as Paulson intends to do.
And it’s not surprise that trade-unions and environmentalism have been detrimental to US businesses. The inappropriate response is the one most often taken: tax, regulate, subsidize.