Living Standard Seen Rising Faster Abroad

The standard of living of workers in other major countries has risen four times as fast as the U.S. standard of living in the past 15 years, according to a new study on American competitiveness released Thursday.

The report, prepared by the Council on Competitiveness, concluded that the United States had lost ground not only in terms of living standards, but also in the related areas of international trade, productivity and investment.

“In an increasingly global economy, others are either fast gaining on us or have surpassed America in the areas that will determine future competitive success,” said Michael Porter, a Harvard University economics professor who served as a consultant on the study. “If we continue along the path we’ve been on since 1972, we could lose the competitiveness battle altogether.”

The council is a coalition of executives from industry, organized labor and higher education who got together in 1986 to help American companies compete more effectively in world markets.

Broad Losses Cited

The council presented what it called a “competitiveness index,” which it said measured America’s performance against its competitors in global markets.

The report said that in all four areas it surveyed the United States had lost ground compared to the world’s six other large industrial democracies--Japan, West Germany, Britain, France, Canada and Italy. These nations and the United States meet annually for economic summits, including a coming session this month in Toronto.