In time for the State of the Union Address, this is my opinion on what I think are the 3 most damaging trends that have occurred in the US economy for the past 10 years:
1) The Financialization of the U.S. economy. This is evident in 2 ways: Doubling of the size of the financial sector as % of the economy, and every other corporation in the US emulating the mode of operation of financial companies regardless of the product or service manufactured or offered. The end result has been a hollowing out of our innovation capacity in pursuit of short term profit.
2) Regulatory environment has moved away from favoring entrepreneurs to favoring large corporations. This is moving the US away from creative destruction, where market forces are allowed to work and there are consequences for bad management, towards state capitalism or robber barons capitalism, favoring the few over the many. The bailouts are the best example of this.
3) Government investments and incentives moved away from basic research and infrastructure toward "picking winners" in the marketplace, in the same way that Japan used to pretty much give away their economic advantage and set the country in terminal decline. The ethanol boondoggle is the best example of this.