Survey: US more competitive globally, but inequality a risk

WASHINGTON (AP) — Income inequality will remain a persistent problem despite brighter prospects for U.S. companies globally, according to an annual survey of Harvard Business School alumni.

The respondents suggested that greater economic inequality could ultimately reduce demand for their products, hurt social stability, make it harder to acquire skilled workers and provoke a backlash against successful companies.

With its 5.1 percent unemployment rate and steady job growth since early 2014, "the U.S. economy is the most robust economy in the world," said Gregory Daco, head of U.S. macroeconomics at the consultancy Oxford Economics.

American "business leaders have figured out the hidden costs of operating in emerging economies, and that makes the United States look more attractive," said Rivkin, noting that faster product cycles mean that companies must be closer to their domestic customers and that wage inflation in emerging nations has increased operating costs.