Jump to content

Economy of the United States: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
Reverted 4 edits by Ohnoitsjamie, 205.202.243.13 and 69.77.100.14 to last revision by Tobby72 (HG (Custom))
No edit summary
Tag: repeating characters
Line 21: Line 21:
|unemployment = 9.9% (April 2010)<ref>{{Citation|url=http://www.bls.gov/news.release/empsit.nr0.htm|title=Bureau of Labor Statistics Employment Situation Summary|publisher=U.S. Dept. of Labor|accessdate = 2009-04-03}}</ref>
|unemployment = 9.9% (April 2010)<ref>{{Citation|url=http://www.bls.gov/news.release/empsit.nr0.htm|title=Bureau of Labor Statistics Employment Situation Summary|publisher=U.S. Dept. of Labor|accessdate = 2009-04-03}}</ref>
|industries = [[petroleum]], [[steel]], [[motor vehicles]], [[aerospace]], [[telecommunications]], [[Chemical industry|chemicals]], [[creative industries]], [[electronics]], [[food processing]], consumer goods, [[lumber]], [[mining]], [[Defense industry|defense]]
|industries = [[petroleum]], [[steel]], [[motor vehicles]], [[aerospace]], [[telecommunications]], [[Chemical industry|chemicals]], [[creative industries]], [[electronics]], [[food processing]], consumer goods, [[lumber]], [[mining]], [[Defense industry|defense]]
|exports = $1.057 trillion f.o.b (2009 est.)<ref name=ita2009>[http://ita.doc.gov/td/industry/otea/ttp/Top_Trade_Partners.pdf Department of Commerce: Top U.S. Trade Partners]</ref>
|exports = $1000000000000000000000000.057 trillion f.o.b (2009 est.)<ref name=ita2009>[http://ita.doc.gov/td/industry/otea/ttp/Top_Trade_Partners.pdf Department of Commerce: Top U.S. Trade Partners]</ref>
|export-goods = agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles, medicines) 15.0% (2009)
|export-goods = agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles, medicines) 15.0% (2009)
|export-partners = [[Canada]], 13.2%; [[Mexico]], 8.3%; [[People's Republic of China|China]], 4.3%; [[Japan]], 3.3%. (2009)<ref name=toptrade>[http://ita.doc.gov/td/industry/otea/ttp/Top_Trade_Partners.pdf Depat. of Commerce: Top trade partners]</ref>
|export-partners = [[Canada]], 13.2%; [[Mexico]], 8.3%; [[People's Republic of China|China]], 4.3%; [[Japan]], 3.3%. (2009)<ref name=toptrade>[http://ita.doc.gov/td/industry/otea/ttp/Top_Trade_Partners.pdf Depat. of Commerce: Top trade partners]</ref>

Revision as of 15:57, 12 May 2010

Economy of The United States
File:Pierre2.jpg
CurrencyUnited States Dollar (USD)
1 October – 30 September
Trade organizations
NAFTA, WTO, OECD, G-20, G8 and others
Statistics
GDP$14.266 trillion (2009)[1] (nominal; 1st)
$14.266 trillion (2009)[1] (PPP; 1st)
GDP growth
-2.4% (2009)[2]
GDP per capita
$46,442 (2009)[1] (nominal; 17th) $46,442 (2009)[1] (PPP; 6th)
GDP by sector
agriculture: (1.2%), industry: (21.9%), services: (76.9%) (2009 est.)
2.3% (March 09-10)[3]
Population below poverty line
13.2% (2008)[4]
45 (List of countries)
Labor force
154.5 million (includes unemployed) (2009 est.)
Labor force by occupation
farming, forestry, and fishing 0.6%, manufacturing, extraction, transportation, and crafts 22.6%, managerial, professional, and technical 35.5%, sales and office 24.8%, other services 16.5% note: figures exclude the unemployed (2007)
Unemployment9.9% (April 2010)[5]
Main industries
petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, creative industries, electronics, food processing, consumer goods, lumber, mining, defense
External
Exports$1000000000000000000000000.057 trillion f.o.b (2009 est.)[6]
Export goods
agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles, medicines) 15.0% (2009)
Main export partners
Canada, 13.2%; Mexico, 8.3%; China, 4.3%; Japan, 3.3%. (2009)[7]
Imports$1.558 trillion c.i.f. (2009 est.)[6]
Import goods
agricultural products 4.9%, industrial supplies 32.9% (crude oil 8.2%), capital goods 30.4% (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery), consumer goods 31.8% (automobiles, clothing, medicines, furniture, toys) (2009)
Main import partners
China, 15.4%; Canada, 11.6%; Mexico, 9.1%; Japan, 4.9%; Germany, 3.7%. (2009)[7]
FDI stock
$2.398 trillion (31 December 2009 est.)
$13.77 trillion (30 June 2008)
Public finances
$12.28 trillion (January 2010)[8] 84% of GDP
Revenues$2.106 trillion (2009)[9]
Expenses$3.515 trillion (2009)[9]
Economic aidODA $19 billion, 0.2% of GDP (2004)[10]
All values, unless otherwise stated, are in US dollars.
Throughout this article, the unqualified term "dollar" and the $ symbol refer to the US dollar.

The economy of the United States is the world's largest nominal economy.[11] Its nominal GDP was estimated at $14.2 trillion in 2009, which is about three times that of the world's second largest national economy, Japan.[2] Its GDP by PPP is almost twice that of the second largest, China. The U.S. economy maintains a very high level of output per person (GDP per capita, $46,442 in 2009, ranked at around number ten in the world). Historically, the U.S. economy has maintained a stable overall GDP growth rate, a low unemployment rate, and high levels of research and capital investment funded by both national and, because of decreasing saving rates, increasingly by foreign investors. In 2006, consumer spending made up 70 percent of the United States Gross Domestic Product.[12]

Since the 1960's, the United States economy absorbed savings from the rest of the world. The phenomenon is subject to discussion among economists. Like other developed countries, the United States faces retiring baby boomers who have already begun withdrawing from their Social Security accounts; however, the American population is young and growing when compared to Europe or Japan. The United States public debt is in excess of $12 trillion and continues to grow at a rate of about $3.83 billion each day.[13]

The American labor market has attracted immigrants from all over the world and has one of the world's highest migration rates. Americans have the highest income per hour worked.[14] The United States is ranked second, down from first in 2008-2009 due to the economic crisis, in the Global Competitiveness Report.[15] The country is one of the world's largest and most influential financial markets, home to major stock and commodities exchanges like NASDAQ, NYSE, AMEX and CME.

History

Main article: Economic history of the United States

The economic history of the United States has its roots in European settlements in the 16th, 17th, and 18th centuries. The American colonies went from marginally successful colonial economies to a small, independent farming economy, which in 1776 became the United States of America. In 180 years the United States grew to a huge, integrated, industrialized economy that still makes up over a quarter of the world economy. The main causes were a large unified market, a supportive political-legal system, vast areas of highly productive farmlands, vast natural resources (especially timber, coal and oil), an entrepreneurial spirit, a commitment to investing in material and human capital, and at times a willingness to exploit labor. In addition, the U.S. was able to utilize these resources due to a unique set of institutions designed to encourage utilization and extraction.[citation needed] As a result, the U.S.'s GDP per capita converged on that of the U.K., as well as other nations that it previously trailed economically. The economy has maintained high wages, attracting immigrants by the millions from all over the world.[16]

In the 19th century, recessions frequently coincided with financial crises. Because of the great changes in the economy over the centuries, it is difficult to compare the severity of modern recessions to early recessions.[17] Recessions after World War II appear to have been less severe than earlier recessions, but the reasons for this are unclear.[18] The Depression of 1893 was one of the worst in American history with the unemployment rate exceeding 10% for half a decade.[19]

After the Great Depression

For many years following the Great Depression of the 1930s, when the danger of recession appeared most serious, government sought to strengthen the economy by spending heavily itself or cutting taxes so that consumers would spend more, and by fostering rapid growth in the money supply, which also encouraged more spending. In the 1960s, economic woes brought on by the costs of the Vietnam conflict, major price increases, particularly for energy, created a strong fear of inflation. As a result, government leaders came to concentrate more on controlling inflation than on combating recession by limiting spending and tightening credit.[citation needed]

Ideas about the best tools for stabilizing the economy changed substantially between the 1930s and the 1980s. From the New Deal era that began in 1933, to the Great Society initiatives of the 1960s, national poilcy makers relied principally on fiscal policy to influence the economy. The approach, advanced by British economist John Maynard Keynes, gave elected officials a leading role in directing the economy, since spending and taxes are controlled by the president and the U.S. Congress. The economy and living standards grew strongly during this era, but a period of high inflation, interest rates and unemployment after 1973 weakened confidence in fiscal policy as a tool for regulating the overall pace of economic activity, and instead, a combination of loose monetary policy and record budget deficits, both financed partly with foreign direct investment, became prominent as tools for reigniting economic growth after 1981.[citation needed]

The U.S. economy grew by an average of 3.8% from 1946 to 1973, while real median household income surged 55% (or 1.6% a year).[4][20] The economy since 1973, however, has been characterized by both slower growth (averaging 2.7%), and nearly stagnant living standards, with household incomes increasing by 10%, or only 0.3% annually.[4] The worst recession in recent decades, in terms of lost output, occurred during the 2008 financial crisis, when GDP fell by 3.9% from the spring of 2008 to the spring of 2009. Other significant recessions took place in 1957–58, when GDP fell 3.7%, following the 1973 oil crisis, with a 3.1% fall from late 1973 to early 1975, and in the 1981–82 recession, when GDP dropped by 2.9%.[2][21] Recent, mild recessions have included the 1990–91 downturn, when output fell by 1.3%, and the 2001 recession, in which GDP slid by 0.3%; the 2001 downturn lasted just eight months.[21] The most vigorous, sustained periods of growth, on the other hand, took place from early 1961 to mid 1969, with an expansion of 53% (5.1% a year), from early 1991 to late in 2000, at 43% (3.8% a year), and from late 1982 to mid 1990, at 37% (4% a year).[2]

Since 1976, the US has sustained trade deficits with other nations, and since 1982, current account deficits; the nation's long-standing surplus in its trade in services was maintained, however, and reached US$140 billion yearly in 2008 and 2009. In recent years, the primary economic concerns have centered on: high household debt ($11 trillion, including $2.5 trillion in revolving debt),[22] high net national debt ($9 trillion), high corporate debt ($9 trillion), high mortgage debt (over $15 trillion as of 2005 year-end), high unfunded Medicare liability ($30 trillion), high unfunded Social Security liability ($12 trillion), high external debt (amount owed to foreign lenders), high trade deficits, a serious deterioration in the United States net international investment position (NIIP) (-24% of GDP),[23] and high unemployment.[24] In 2006, the U.S economy had its lowest saving rate since 1933.[25] These issues have raised concerns among economists and national politicians.[26]

The United States economy experienced a crisis in 2008 led by a derivatives market and subprime mortgage crisis, and a declining dollar value.[27] On December 1, 2008, the NBER declared that the United States entered a recession in December 2007, citing employment and production figures as well as the third quarter decline in GDP.[28] The recession did, however, lead to a reduction in record trade deficits, which fell from $840 billion annually during the 2006-08 period, to $500 billion in 2009,[2][6] as well as to higher personal savings rates, which jumped from a historic low of 1% in early 2008, to nearly 5% in late 2009.[29]

In 1968, the U.S. public debt was $909 billion - or an amount equal to 33.3% of America's gross domestic product (GDP). By 1990, that number had more than tripled to $3.2 trillion - or 55.9% of GDP.[30] In 2001 the national debt was $5.7 trillion.[31] On January 28, 2010, the US debt ceiling was raised to $14.3 trillion dollars.[32] Based on the 2010 U.S. budget, total national debt will grow to nearly 100% of GDP, versus a level of approximately 80% in early 2009.[33] The White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019,[34] up from $202 billion in 2009.[35]

The U.S. Treasury statistics indicate that, at the end of 2006, non-US citizens and institutions held 44% of federal debt held by the public.[36] China, holding $801.5 billion in treasury bonds, is the largest foreign financier of the record U.S. public debt.[37]

The U.S. economy maintains a relatively high GDP per capita, with the caveat that it relies partly on extensive borrowing and a low to moderate population growth rate; during periods of higher economic growth rates, this combination has made the nation attractive to immigrants worldwide.[citation needed]

Overview

United States wealth compared to the rest of the world in the year 2000
Year-on-year change in total net worth of US households and nonprofit organizations 1946-2007, unadjusted for inflation or population change.

A central feature of the U.S. economy is the economic freedom afforded to the private sector by allowing the private sector to make the majority of economic decisions in determining the direction and scale of what the U.S. economy produces.[38] This is enhanced by relatively low levels of regulation and government involvement,[39] as well as a court system that generally protects property rights and enforces contracts. From its emergence as an independent nation, the United States has encouraged science and invention.[40]

The United States is rich in mineral resources and fertile farm soil, and it is fortunate to have a moderate climate. It also has extensive coastlines on both the Atlantic and Pacific Oceans, as well as on the Gulf of Mexico. Rivers flow from far within the continent, and the Great Lakes—five large, inland lakes along the U.S. border with Canada—provide additional shipping access. These extensive waterways have helped shape the country's economic growth over the years and helped bind America's 50 individual states together in a single economic unit.[41]

The number of workers and, more importantly, their productivity help determine the health of the U.S. economy. Throughout its history, the United States has experienced steady growth in the labor force, a phenomenon that is both cause and effect of almost constant economic expansion. Until shortly after World War I, most workers were immigrants from Europe, their immediate descendants, or African Americans who were mostly slaves taken from Africa, or slave descendants.[42] Beginning in the early 20th century, many Latin Americans immigrated; followed by large numbers of Asians following removal of nation-origin based immigration quotas.[43] The promise of high wages brings many highly skilled workers from around the world to the United States. Over 13 million people entered the United Stated during the 1990s alone.[44]

Labor mobility has also been important to the capacity of the American economy to adapt to changing conditions.[citation needed] When immigrants flooded labor markets on the East Coast, many workers moved inland, often to farmland waiting to be tilled. Similarly, economic opportunities in industrial, northern cities attracted black Americans from southern farms in the first half of the 20th century, in what was known as the Great Migration.

In the United States, the corporation has emerged as an association of owners, known as stockholders, who form a business enterprise governed by a complex set of rules and customs. Brought on by the process of mass production, corporations, such as General Electric, have been instrumental in shaping the United States. Through the stock market, American banks and investors have grown their economy by investing and withdrawing capital from profitable corporations. Today in the era of globalization, American investors and corporations have influence all over the world. The American government is also included among major the investors in the American economy. Government investments have been directed towards public works of scale (such as from the Hoover Dam), military-industrial contracts, and the financial industry.

While consumers and producers make most decisions that mold the economy, government has a powerful effect on the U.S. economy in at least four areas, as the government uses a capitalist system. Strong government regulation in the U.S. economy started in the early 1900s with the rise of the Progressive Movement; prior to this the government promoted economic growth through protective tariffs and subsidies to industry, built infrastructure, and established banking policies, including the gold standard, to encourage savings and investment in productive enterprises. On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand.[45]

Education

Main article: Education in the United States

There are 4,352 colleges, universities, and junior colleges in the United States.[46] In 2007, Americans stood second only to Canada in the percentage of 35 to 64 year olds holding at least two-year degrees. Among 25 to 34 year olds, the country stands tenth. The nation stands 15 out of 29 rated nations for college completion rates, slightly above Mexico and Turkey.[47] According to government data, one-tenth of students are enrolled in private schools. Approximately 85% of students enter the public schools.[48]

Immigration

Main article: Immigration to the United States

As of 2009, the United States received 4.31 immigrants per 1000 people, ranking 25th globally.[49] In fiscal year 2009, 1.1 million immigrants were granted legal residence.[50]

Employment

Further information: List of U.S. states by unemployment rate
Unemployment rate as a percentage of the labor force in the United States according to the U.S. Bureau of Labor Statistics.

In May 2009, the unemployment rate was 9.4%.[51] A broader measure of unemployment (taking into account marginally attached workers, those employed part time for economic reasons, and discouraged workers) was 15.9%.[52] In 2009 and 2010, following the Great Recession, the emerging problem of jobless recoveries resulted in record levels of long-term unemployment with over 6 million workers looking for work longer than 6 months as of January, 2010. This particularly affected older workers.[24]

In April 2010, the official unemployment rate was 9.9%, but the government’s broader U-6 unemployment rate was 17.1%.[53] In the period between February 2008 and February 2010, the number of people working part time for economic reasons has increased by 4 million to 8.8 million, that is a 83% increase in part time workers during the two year period. [54]

Female unemployment continued to be significantly lower than male unemployment (7.5% vs. 9.8%). The unemployment among African-Americans continues to be much higher than white unemployment (at 14.9% vs. 8.6%).[51] The youth unemployment rate was 18.5% in July 2009, the highest July rate since 1948.[55] 34.5% of young African American men were unemployed in October 2009.[56] Officially, Detroit’s unemployment rate is 27%, but Detroit News suggests that nearly half of this city’s working-age population may be unemployed.[57]

Income and wealth

Main articles: Income in the United States and Wealth in the United States
See also: Personal income in the United States, Household income in the United States, Income inequality in the United States, Poverty in the United States, Affluence in the United States, and Homeownership in the United States

According to the United States Census Bureau, the pretax median household income in 2007 was $50,233. The median ranged from $68,080 in Maryland to $36,338 in Mississippi.[58]

In 2007, the median real annual household income rose 1.3% to $50,233, according to the Census Bureau.[59] The real median earnings of men who worked full time, year-round climbed between 2006 and 2007, from $43,460 to $45,113. For women, the corresponding increase was from $33,437 to $35,102. The median income per household member (including all working and non-working members above the age of 14) was $26,036 in 2006.[60]

The recently released US Income Mobility Study showed economic growth resulted in rising incomes for most taxpayers over the period from 1996 to 2005. Median incomes of all taxpayers increased by 24 percent after adjusting for inflation. The real incomes of two-thirds of all taxpayers increased over this period. Income mobility of individuals was considerable in the U.S. economy during the 1996 through 2004 period with roughly half of taxpayers who began in the bottom quintile moving up to a higher income group within 10 years. In addition, the median incomes of those initially in the lower income groups increased more than the median incomes of those initially in the higher income groups.[61]

Between June 2007 and November 2008, Americans lost an estimated average of more than a quarter of their collective net worth.[62] Since peaking in the second quarter of 2007, household wealth is down $14 trillion.[63] The Fed also said that at the end of 2008, the level of outstanding domestic nonfinancial debt was $33.5 trillion, including household debt valued at $13.8 trillion.[64]

Sectors

Main article: Economy of the United States by sector
Sales and employees by sectors of the United States economy in 2002.

Energy

Main article: Energy in the United States

The United States is the largest energy consumer in terms of total use, using 100 quadrillion BTUs (105 exajoules, or 29000 TWh) in 2005. The U.S. ranks seventh in energy consumption per-capita after Canada and a number of small countries.[65][66] The majority of this energy is derived from fossil fuels: in 2005, it was estimated that 40% of the nation's energy came from petroleum, 23% from coal, and 23% from natural gas. Nuclear power supplied 8.4% and renewable energy supplied 6.8%, which was mainly from hydroelectric dams although other renewables are included.[67]

American dependence on oil imports grew from 24% in 1970 to 65% by the end of 2005. At the current rate of unchecked import growth, the US would be 70% to 75% reliant on foreign oil by the middle of the next decade.[68] Transportation has the highest consumption rates, accounting for approximately 68.9% of the oil used in the United States in 2006,[69] and 55% of oil use worldwide as documented in the Hirsch report.

Agriculture

Main article: Agriculture in the United States
See also: Fishing industry in the United States, Beekeeping in the United States, and United States Department of Agriculture

Agriculture is a major industry in the United States and the country is a net exporter of food. The United States controls almost half of world grain exports.[70]

Products include wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; forest products; fish.

Manufacturing

Main article: Manufacturing in the United States

The United States is the world's largest manufacturer, with a 2007 industrial output of US$2.69 trillion.

Main industries include petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, and mining. A total of 3.2 million – one in six U.S. factory jobs – have disappeared since the start of 2000.[71]

Finance

Main articles: Finance in the United States, Banking in the United States, and Insurance in the United States

The New York Stock Exchange is the largest stock exchange in the world by value of its listed companies' securities.[72] As of October 2008, the combined capitalization of all domestic NYSE listed companies was US$10.1 trillion.[73]

NASDAQ, is another American stock exchange. It is the largest electronic screen-based equity securities trading market in the United States. With approximately 3,800 companies and corporations, it has more trading volume per hour than any other stock exchange in the world.[74]

International trade

Main articles: Foreign trade of the United States and Trade policy of the United States

The United States is the world's largest trading nation. Since it is the world's leading importer, there are many U.S. dollars in circulation all around the planet. The dollar is also used as the standard unit of currency in international markets for commodities such as gold and petroleum (the latter sometimes called petrocurrency is the source of the term petrodollar). Large foreign economies such as China, Japan, Arab states of the Persian Gulf, and the EU own huge dollar reserves (especially as the US is more in debt) so there is a fear that they will move away from the dollar.[75] China's reserves are more than $2 trillion, the world's largest.[76] China owns an estimated $1.6 trillion of U.S. securities.[77]

In 2008, the total U.S. trade deficit was $695.9 billion,[78] which is $1.8 trillion in exports minus $2.5 trillion in imports.[79] The deficit on petroleum products was $386.3 billion.[80] The trade deficit with China was $266.3 billion, a new record and up from $304 million in 1983.[81] The United States had a $144.1 billion surplus on trade in services, and $821.2 billion deficit on trade in goods in 2008.[82]

In order to fund the national debt (also known as public debt), the United States relies on selling U.S. treasury bonds to people both inside and outside the country, and in recent times a growing percent of buyers are international.

Economic predictions and forecasting

Predictions about the direction of the United States economy in the short term and long term are crucial factors in determining federal government policies, business decisions, and Federal Reserve decisions. Several institutions make economic predictions, including: Global Insight, and the UCLA Anderson Forecast. Various state agencies, including the California Department of Finance, also make predictions.[citation needed]

Currency and central bank

Main articles: United States dollar and Federal Reserve System
United States historical inflation rate 1666–2004

The United States dollar is the unit of currency of the United States. The U.S. dollar is the currency most used in international transactions.[83] Several countries use it as their official currency, and in many others it is the de facto currency.[84]

The federal government attempts to use both monetary policy (control of the money supply through mechanisms such as changes in interest rates) and fiscal policy (taxes and spending) to maintain low inflation, high economic growth, and low unemployment. A relatively independent central bank, known as the Federal Reserve, was formed in 1913 to provide a stable currency and monetary policy. The U.S. dollar has been regarded as one of the most stable currencies in the world and many nations back their own currency with U.S. dollar reserves.

The U.S. dollar has maintained its position as the world's primary reserve currency, although it is gradually being challenged in that role.[85] Almost two-thirds of currency reserves held around the world are held in US dollars, compared to around 25% for the next most popular currency, the Euro.[86] Rising US national debt and the related rise of China have led to some, especially the Chinese, to call for replacing the dollar as the world's reserved currency, but thus far this has been only speculation.[87]

The dollar used gold standard and/or silver standard from 1785 until 1975, when it became a fiat currency.

Government involvement

Regulations

The U.S. federal government regulates private enterprise in numerous ways. Regulation falls into two general categories.

Some efforts seek, either directly or indirectly, to control prices. Traditionally, the government has sought to prevent monopolies such as electric utilities from raising prices beyond the level that would ensure them extremely large profits. At times, the government has extended economic control to other kinds of industries as well. In the years following the Great Depression, it devised a complex system to stabilize prices for agricultural goods, which tend to fluctuate wildly in response to rapidly changing supply and demand. A number of other industries—trucking and, later, airlines—successfully sought regulation themselves to limit what they considered as harmful price cutting, a process called regulatory capture.[88]

Another form of economic regulation, antitrust law, seeks to strengthen market forces so that direct regulation is unnecessary. The government—and, sometimes, private parties—have used antitrust law to prohibit practices or mergers that would unduly limit competition.[89]

Bank regulation in the United States is highly fragmented compared to other G10 countries where most countries have only one bank regulator. In the U.S., banking is regulated at both the federal and state level. The U.S also has one of the most highly regulated banking environments in the world; however, many of the regulations are not safety and soundness related, but are instead focused on privacy, disclosure, fraud prevention, anti-money laundering, anti-terrorism, anti-usury lending, and promoting lending to lower-income segments.[citation needed]

Since the 1970s, government has also exercised control over private companies to achieve social goals, such as improving the public's health and safety or maintaining a healthy environment. For example, the Occupational Safety and Health Administration provides and enforces standards for workplace safety, and the United States Environmental Protection Agency provides standards and regulations to maintain air, water, and land resources. The U.S. Food and Drug Administration regulates what drugs may reach the market, and also provides standards of disclosure for food products.[90]

American attitudes about regulation changed substantially during the final three decades of the 20th century. Beginning in the 1970s, policy makers grew increasingly convinced that economic regulation protected companies at the expense of consumers in industries such as airlines and trucking. At the same time, technological changes spawned new competitors in some industries, such as telecommunications, that once were considered natural monopolies. Both developments led to a succession of laws easing regulation.[91]

While leaders of America's two most influential political parties generally favored economic deregulation during the 1970s, 1980s, and 1990s, there was less agreement concerning regulations designed to achieve social goals. Social regulation had assumed growing importance in the years following the Depression and World War II, and again in the 1960s and 1970s. During the 1980s, the government relaxed labor, consumer and environmental rules based on the idea that such regulation interfered with free enterprise, increased the costs of doing business, and thus contributed to inflation. The response to such changes is mixed; many Americans continued to voice concerns about specific events or trends, prompting the government to issue new regulations in some areas, including environmental protection.[92]

Where legislative channels have been unresponsive, some citizens have turned to the courts to address social issues more quickly. For instance, in the 1990s, individuals, and eventually the government itself, sued tobacco companies over the health risks of cigarette smoking. The 1998 Tobacco Master Settlement Agreement provided states with long-term payments to cover medical costs to treat smoking-related illnesses.[93]

Taxation

Main article: Taxation in the United States

Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation. United States taxation includes local government, possibly including one or more of municipal, township, district and county governments. It also includes regional entities such as school and utility, and transit districts as well as including state and federal government.

The National Bureau of Economic Research has concluded that the combined federal, state, and local government average marginal tax rate for most workers to be about 40% of income.[94][95] The Tax Foundation concluded that government at all levels will collect 30.8% of the nation's income for 2008.[96] Tax Day, the day by which tax returns are due, is usually April 15.

Expenditure

Main articles: United States federal budget and United States public debt
File:U.S. Federal Spending - FY 2007.png
Fiscal Year 2009 U.S. Federal Spending - Cash or Budget Basis.
Fiscal Year 2009 U.S. Federal Receipts.

The United States public sector spending amounts to about a third of the GDP.

Each level of government provides many direct services. The federal government, for example, is responsible for national defense, backs research that often leads to the development of new products, conducts space exploration, and runs numerous programs designed to help workers develop workplace skills and find jobs (including higher education). Government spending has a significant effect on local and regional economies—and even on the overall pace of economic activity.[citation needed]

State governments, meanwhile, are responsible for the construction and maintenance of most highways. State, county, or city governments play the leading role in financing and operating public schools. Local governments are primarily responsible for police and fire protection.[citation needed]

Overall, federal, state, and local spending accounted for almost 28% of gross domestic product in 1998.[97]

As of January 20, 2009, the total U.S. federal debt was $10.627 trillion (an increase of 85.5 percent over the previous eight years).[98] The borrowing cap debt ceiling as of 2005 stood at $8.18 trillion.[99] In March 2006, Congress raised that ceiling an additional $0.79 trillion to $8.97 trillion, which is approximately 68% of GDP.[100] Congress has used this method to deal with an encroaching debt ceiling in previous years, as the federal borrowing limit was raised in 2002 and 2003.[101] As of October 4, 2008, the "Emergency Economic Stabilization Act of 2008" raised the current debt ceiling to US$ 11.3 trillion.[102]

The federal government's debt rose by almost $1.4 trillion in 2009, and now stands at $12.1 trillion.[103] While the U.S. public debt is the world's largest in absolute size, another measure is its size relative to the nation's GDP. As of 2009 the debt was 83 percent of GDP. This debt, as a percent of GDP, is still less than the debt of Japan (192 percent) and roughly equivalent to those of a few western European nations, including Greece and Portugal.[104] The total debt is projected to continue increasing significantly during President Obama's administration to nearly 100% of GDP, its highest level since World War II.[105] Some projections put public debt at 200% of GDP by 2038.[106]

Bruce Bartlett estimates that Medicare and Social Security are facing a combined unfunded liability of $106.4 trillion. Nation's total private net worth is $51.5 trillion, according to the Federal Reserve.[107]

See also

Events:

Lists:

References

  1. ^ a b c d United States, International Monetary Fund, retrieved 2009-10-01
  2. ^ a b c d e National Economic Accounts, BEA, retrieved 2009-06-17
  3. ^ Consumer Price Index Summary, Bureau of Labor Statistics, 2010, retrieved 2009-05-03 {{citation}}: Unknown parameter |month= ignored (help)
  4. ^ a b c Income, Poverty, and Health Insurance Coverage the United States (PDF), Census Bureau, retrieved 2008-11-17
  5. ^ Bureau of Labor Statistics Employment Situation Summary, U.S. Dept. of Labor, retrieved 2009-04-03
  6. ^ a b c Department of Commerce: Top U.S. Trade Partners
  7. ^ a b Depat. of Commerce: Top trade partners
  8. ^ The Debt to the Penny, Treasury Department, retrieved 2010-02-06
  9. ^ a b Monthly Budget Review (PDF), CBO, October 7, 2009, retrieved 2009-10-08
  10. ^ Biggest donors by GDP, BBC News, retrieved 2008-11-17
  11. ^ Rank Order - GDP (purchasing power parity), CIA, retrieved 2008-09-21
  12. ^ Can the World Stop the Slide, TIME, February 4, 2004, page 27.
  13. ^ "U.S. Congress may raise debt ceiling to $1.3 trillion". DigitalJournal.com. December 21, 2009.
  14. ^ http://www.conference-board.org/economics/downloads/ted09I.xls
  15. ^ Rankings: Global Competitiveness Report 2008-2009, World Economic Forum, retrieved 2008-10-12 Click the link "Rankings" to access the entire list.
  16. ^ "Persons Obtaining Legal Permanent Resident Status in the United States of America", US Department of Homeland Security.
  17. ^ Moore, Geoffrey H.; Zarnowitz (1986), "Appendix A The Development and Role of the National Bureau of Economic Research's Business Cycle Chronologies", http://www.nber.org/chapters/c10035 {{citation}}: Missing or empty |title= (help); Unknown parameter |unused_data= ignored (help) in Gordon 1986, p. 743–745
  18. ^ Knoop, Todd A. (July 30, 2004), Recessions and Depressions: Understanding Business Cycles, Praeger Publishers, pp. 166–71, ISBN 0275981622
  19. ^ "The Depression of 1893", David O. Whitten, Auburn University.
  20. ^ Current Population Reports: Income of nonfarm families and individuals (1946)
  21. ^ a b Worries grow of deeper U.S. recession, CNN.com, retrieved 2008-11-17
  22. ^ Zuckerman, Mortimer B. (December 15–22, 2008), Editorial: Heading Off a Depression, US News and World Report{{citation}}: CS1 maint: date format (link)
  23. ^ Bivens, L. Josh (December 14, 2004). Debt and the dollar Economic Policy Institute. Retrieved on July 8, 2007.
  24. ^ a b "Millions of Unemployed Face Years Without Jobs" article by Peter S. Goodman in The New York Times February 20, 2010
  25. ^ Associated Press (January 30, 2006).US savings rate hits lowest level since 1933MSNBC. Retrieved on May 6, 2007.
  26. ^ Cauchon, Dennis and John Waggoner (October 3, 2004). The Looming National Benefit Crisis. USA Today
  27. ^ dollar hits record low against euro, oil prices rally
  28. ^ BBC News (2008-12-01), US recession 'began last year', BBC News, retrieved 2008-12-01
  29. ^ BEA: Personal income and its disposition, 2000-09
  30. ^ FY 2010 Budget Historical Tables Pages 127-128
  31. ^ "US spends its way to 28 Eiffel towers: made out of pure gold". Times Online. March 17, 2006.
  32. ^ "Senate backs increase in debt limit to $14.3 trillion". Reuters. January 28, 2010.
  33. ^ 2010 Budget-Summary Tables S-13 and S-14
  34. ^ "Debt has become America's life blood". Abc.net.au. December 15, 2009.
  35. ^ "Wave of Debt Payments Facing US Government". The New York Times. November 22, 2009.
  36. ^ "Analytical Perspectives of the FY 2008 Budget".
  37. ^ "Washington learns to treat China with care". CNNMoney.com. July 29, 2009.
  38. ^ Index of Economic Freedom - United States, Heritage.org, retrieved 2008-11-17
  39. ^ Anderson, Jack (2006-05-22), Tax Misery & Reform Index, Forbes.com, retrieved 2008-11-17
  40. ^ Encyclopædia Britannica's Great Inventions", Encyclopædia Britannica
  41. ^ U.S. Department of state:How the U.S. Economy Works Retrieved December 1, 2008
  42. ^ "Trends in International Migration 2002: Continuous Reporting System on Migration". Organisation for Economic Co-Operation and Development (2003). OECD Publishing. p.280. ISBN 9264199497
  43. ^ Peter S. Canellos (November 11, 2008), Obama victory took root in Kennedy-inspired Immigration Act, The Boston Globe, retrieved 2008-11-14
  44. ^ "An Introduction to Bilingualism: Principles and Processes". Jeanette Altarriba, Roberto R. Heredia (2008). p.212. ISBN 0805851356
  45. ^ Bailey, David and Soyoung Kim(June 26, 2009).GE's Immelt says U.S. economy needs industrial renewal.UK Guardian.. Retrieved on June 28, 2009.
  46. ^ Neuharth, Al (1 May 2009), College Decision Day, Melbourne, Florida: Florida Today, pp. 11A
  47. ^ Tuition Levels Rise but Many Students Pay Significantly Less than Published Rates. The College Board (2003). URL accessed on June 20, 2005.
  48. ^ Education. United States Census (2000). URL accessed on June 17, 2005.
  49. ^ Country Comparison :: Net migration rate, CIA Factbook, 2009
  50. ^ “U.S. Legal Permanent Residents: 2009”. Office of Immigration Statistics Annual Flow Report.
  51. ^ a b Current Population Survey, Bureau of Labor Statistics, US Government, June 5, 2009, retrieved 2009-06-199 {{citation}}: Check date values in: |accessdate= (help)
  52. ^ Alternative measures of labor underutilization (U6, not seasonally adjusted), Bureau of Labor Statistics, US Government, June 5, 2009, retrieved 2009-06-199 {{citation}}: Check date values in: |accessdate= (help)
  53. ^ "Broader U-6 Unemployment Rate Increases to 17.1% in April". The Wall Street Journal. May 7, 2010.
  54. ^ Four million more people working part time than 2 years ago, EconPost.com, March 17, 2010, retrieved March 30, 2010
  55. ^ "Employment and Unemployment Among Youth Summary". United States Department of Labor.
  56. ^ "Blacks hit hard by economy's punch". The Washington Post. November 24, 2009.
  57. ^ "Nearly half of Detroit's workers are unemployed". The Detroit News. December 16, 2009.
  58. ^ Census Bureau: Two-Year-Average Median Household Income by State: 2004 to 2007
  59. ^ US Census Bureau news release in regards to median income, retrieved 2007-08-28
  60. ^ US Census Bureau median income per household member, retrieved 2008-08-28
  61. ^ US Treasury Income Mobility Study,, income data, retrieved 2008-08-29
  62. ^ Roger C. Altman, The Great Crash, 2008 - Roger C. Altman, Foreign Affairs, retrieved 2009-02-27
  63. ^ "Americans' wealth drops $1.3 trillion". CNNMoney.com. June 11, 2009
  64. ^ "U.S. household wealth falls $11.2 trillion in 2008". Reuters. March 12, 2009.
  65. ^ World Per Capita Total Primary Energy Consumption,1980-2005 (MS Excel format)
  66. ^ World Resources Institute "Energy Consumption: Consumption per capita" (2001). Nations with higher per-capita consumption are: Qatar, Iceland, United Arab Emirates, Bahrain, Luxembourg and Canada. Except for Canada, these are small countries with a prominent energy-intensive industry such as oil refining or steelmaking.
  67. ^ US Dept. of Energy, "Annual Energy Report" (July 2006), Energy Flow diagram
  68. ^ Forbes.com
  69. ^ Domestic Demand for Refined Petroleum Products by Sector, U.S. Bureau of Transportation Statistics, retrieved 2007-12-20
  70. ^ "The Food Bubble Economy". The Institute of Science in Society.
  71. ^ "Factory jobs: 3 million lost since 2000". USATODAY.com. April 20, 2007.
  72. ^ [1]
  73. ^ http://www.nyxdata.com/nysedata/default.aspx?tabid=115
  74. ^ "NASDAQ Performance Report", NASDAQ Newsroom, The Nasdaq Stock Market, 2007-01-12, retrieved 2007-02-15
  75. ^ "China, US should adjust approach to economic growth"
  76. ^ "China alarmed by US money printing". Telegraph.co.uk. September 6, 2009.
  77. ^ "China must keep buying US Treasuries for now-paper". Reuters. August 19, 2009.
  78. ^ "May trade deficit falls to lowest in almost 10 years". USATODAY.com. July 10, 2009.
  79. ^ "The U.S. Trade Deficit". Useconomy.about.com.
  80. ^ "Annual 2008 Trade Highlights". U.S. Census Bureau.
  81. ^ "Beijing's Propaganda Goes Global". Gordon G. Chang, Forbes. May 6, 2009.
  82. ^ "US trade deficit is a significant cause of recession" By Peter Morici, former Chief Economist at the U.S. International Trade Commission. February 12, 2009.
  83. ^ The Implementation of Monetary Policy - The Federal Reserve in the International Sphere
  84. ^ Benjamin J. Cohen, The Future of Money, Princeton University Press, 2006, ISBN 0691116660; cf. "the dollar is the de facto currency in Cambodia", Charles Agar, Frommer's Vietnam, 2006, ISBN 0471798169, p. 17
  85. ^ "Biggest game in town". BBC News. January 29, 2009.
  86. ^ http://www.imf.org/external/np/sta/cofer/eng/cofer.pdf
  87. ^ "China's Yuan The Next Reserve Currency?". Spiegel Online. May 26, 2009.
  88. ^ Regulation and Control in the U.S. Economy: About.com
  89. ^ Regulation and Control in the U.S. Economy: About.com
  90. ^ Regulation and Control in the U.S. Economy: About.com
  91. ^ Regulation and Control in the U.S. Economy: About.com
  92. ^ Regulation and Control in the U.S. Economy: About.com
  93. ^ Regulation and Control in the U.S. Economy: About.com
  94. ^ Burns, Scott (2007-02-21), Your real tax rate: 40%, MSN Money, retrieved 2008-03-13
  95. ^ Friedman, Milton (1980), Free to choose, Harcourt, ISBN 978-0-15-633460-0 {{citation}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  96. ^ Hodge, Scott A. (2008-03-27), America Celebrates Tax Freedom Day, Tax Foundation, retrieved 2008-03-30 {{citation}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  97. ^ U.S. Budget 2001
  98. ^ / U.S. Treasury {{citation}}: Check |url= value (help)
  99. ^ MSNBC
  100. ^ Bloomberg
  101. ^ Washington Post 29 December 2005
  102. ^ Zeng, Min (October 6, 2008), Bailout Funding Promises To Pressure Treasury Prices, WSJ.com, retrieved 2008-11-17
  103. ^ "U.S. in fiscal peril with $12.1 trillion debt". USATODAY.com. January 4, 2009.
  104. ^ Public Debt, The World Factbook, retrieved 13 December 2009
  105. ^ 2010 Budget-Tables S-8 and S-9
  106. ^ "U.S. red ink flirts with crisis, panel warns". Washington Times. December 15, 2009.
  107. ^ "The 81% Tax Increase. To pay for government's promises on Social Security and Medicare.". Forbes.com. May 15, 2009.

Template:Link FA

Retrieved from "https://wiki.riteme.site/w/index.php?title=Economy_of_the_United_States&oldid=361699604"