THE AMERICAN ECONOMY

UNITED STATES OF AMERICA

GREAT SEAL

FLAG

UNITED STATES OF AMERICA

Independence from the Kingdom of Great Britain - Declared: July 4, 1776 - Recognized: September 3, 1783 - Current constitution: June 21, 1788 Motto: In God We Trust Anthem: The Star-Spangled Banner Capital: Washington, D.C. Largest state: Alaska Smallest State: Rhode Island Largest city: New York City

United States of America

Government: - President :Barack Obama (D) - Vice President :Joe Biden (D) - Speaker of the House: John Boehner (R) - Chief Justice :John Roberts National Bird: Bald Eagle National Flower: Rose National Population-312,711,425 Official languages: None at federal level National language: English (de facto) ***English is the de facto language of American government and the sole language spoken at home by 80% of Americans age five and older. Spanish is the second most commonly spoken language

HISTORY
Britain's American colonies broke with the mother country in 1776 and were recognized as the new nation of the United States of America following the Treaty of Paris in 1783. During the 19th and 20th centuries, 37 new states were added to the original 13 as the nation expanded across the North American continent and acquired a number of overseas possessions. The two most traumatic experiences in the nation's history were the Civil War (1861-65), in which a northern Union of states defeated a secessionist Confederacy of 11 southern slave states, and the Great Depression of the 1930s, an economic downturn during which about a quarter of the labor force lost its jobs. Buoyed by victories in World Wars I and II and the end of the Cold War in 1991, the US remains the world's most powerful nation state. Since the end of World War II, the economy has achieved relatively steady growth, low unemployment and inflation, and rapid advances in technology.

Political divisions
The United States is a federal union of fifty states. The original thirteen states were the successors of the thirteen colonies that rebelled against British rule. Early in the country's history, three new states were organized on territory separated from the claims of the existing states: Kentucky from Virginia; Tennessee from North Carolina; and Maine from Massachusetts. Most of the other states have been carved from territories obtained through war or purchase by the U.S. government. One set of exceptions comprises Vermont, Texas, and Hawaii: each was an independent republic before joining the union. During the American Civil War, West Virginia broke away from Virginia. The most recent stateHawaiiachieved statehood on August 21, 1959.

Geography
The United States is a country in the Western Hemisphere. It consists of forty-eight contiguous states in North America, Alaska, a peninsula which forms the northwestern most part of North America, and Hawaii, an archipelago in the Pacific Ocean. There are several United States territories in the Pacific and Caribbean. The term "United States", when used in the geographical sense, means the continental United States, Alaska, Hawaii, Puerto Rico, Guam, and the Virgin Islands of the United States. The country shares land borders with Canada and Mexico and maritime (water) borders with Russia, Cuba, and The Bahamas Latitude 380' N, Longitude 970'W Area-Total 3,717,813 sq mi, Land 3,536,294 sq mi, Land 3,536,294 sq mi Borders-Canada 5,526 miles, Mexico 2,067 miles, Coastlines 12,380 miles

Government &Politics
The United States is a federal constitutional republic, in which the President is the head of state and head of government . The government is regulated by the U.S. Constitution, which serves as the country's supreme legal document. Here citizens are usually subject to three levels of government, federal, state, and local; the local government's duties are commonly split between county and municipal governments. The federal government is composed of three branches:The executive branch is headed by the President and is independent of the legislature. Legislative power is vested in the two chambers of Congress, the Senate and the House of Representatives. The judicial branch composed of the Supreme Court and lower federal courts, exercises judicial power .

PARTIES & ELECTIONS

The United States has operated under a two-party system for most of its history. Democratic Party founded in 1824 is considered center-left or liberal, and the Republican Party founded in 1854 is considered center-right or conservative . The House of Representatives has 435 voting members. Each representing a congressional district for a two-year term .The Senate has 100 members with each state having two senators, elected at-large to six-year terms; one third of Senate seats are up for election every other year. The president serves a fouryear term and may be elected to the office no more than twice. The president is not elected by direct vote, but by an indirect electoral college system in which the determining votes are apportioned to the states and the District of Columbia. The Supreme Court, led by the Chief Justice of the United States, has nine members, who serve for life.

Foreign Relations
The United States is a permanent member of the United Nations Security Council and New York City hosts the United Nations Headquarters. It is a member of the G8, G20, and Organization for Economic Co-operation and Development. Almost all countries have embassies in Washington, D.C., and many have consulates around the country. Likewise, nearly all nations host American diplomatic missions. However Cuba, Iran, North Korea, Bhutan, and the Republic of China(Taiwan) do not have formal diplomatic relations with the United States. It works closely with fellow NATO members on military and security issues and with its neighbors through the Organization of American States and free trade agreements such as the trilateral North American Free Trade Agreement with Canada and Mexico. In 2008, the United States spent a net $25.4 billion on official development assistance, the most in the world. As a share of America's large gross national income (GNI), however, the U.S. contribution of 0.18% ranked last among twenty-two donor states. By contrast, private overseas giving by Americans is relatively generous.

Demographics
The United States is a multicultural nation. Aside from the now small Native American and Native Hawaiian populations, nearly all Americans or their ancestors immigrated within the past five centuries. Mainstream American culture is a Western culture largely derived from the traditions of European immigrants with influences from many other sources, such as traditions brought by slaves from Africa. More recent immigration from Asia and especially Latin America has added to a cultural mix that has been described as both a homogenizing melting pot, and a heterogeneous salad bowl in which immigrants and their descendants retain distinctive cultural characteristics

Demographics
In 20th century U.S Population was about 76 m and according to current U.S census the Population more than 300 m. America is the 3rd most Population country in the world after China, India. Among this Population around 72.4% are of white people and 12.6% are of Black/African American and rest of them from rest of the world. About 82% of Americans live in the Urban areas. Top four global cities have population over 2 m such as New York, Los Angeles, Chicago and Huston. The metro areas of Dallas, Houston, Atlantic and Phoenix having more than a million people. According to the basis of 2010 U.S census the top 4 cities having highest Population: New York, Los Angeles, Chicago ,Dallas

Demographics
LANGUAGE
English is the de facto national language. Although there is no official language at the federal level, In 2007, about 226 million, or 80% of the population aged five years and older, spoke only English at home.
English (only) Spanish, Chinese French 225.5 million 34.5 million 2.5 million million 1.5

Tagalog
Vietnamese German Korean

million 1.2
million 1.1 million 1.1 million

Demographics
RELIGION
According to first Amendment in U.S religion has the atmost priority. Around 60% of Americans says that religion plays a very important role in their lives. In 2007 it was around 79% of Christians but unfortunately about this is it come 10% down to 1990 census. According to 2007 census the total reporting of Non-Christian religions is 4.7% and it was fortunately up from 3.3%. The non-religion includes Judaism 1.7%, Buddhism 0.7%, Islam 0.6%, Hinduism 0.4% and Unitarian Universalism is around 0.3% and also 16.1% of Americans describes themselves as Atheists and fortunately this figure was raised from 8.2%.

INFRASTRUCTURE
Some important inventions from US Alexander Graham Bell (1876)-Telephone, Thomas Edisons (1879)Light Bulb, Wright brothers(1903)- Air Flight During World War II, development of nuclear weapons, which brings ideology to cold war. Albert Einstein warned the "extremely powerful bombs." Its use against Japan in August 1945 and the end of the Cold War. The United States developed the Internet, IBM and Apple Computer, and Microsoft. Light Emitted Diode (LED), the transistor, the C programming language, and the UNIX computer operating system. American Robert Goddard was one of the first scientists to experiment with rocket systems.(1st SPACE FLIGHT 1961) 1st man Yuri Gagarin(Russia) & 2nd man Alan Sheppard(USA). Global positioning 24 satellites were first done in1994 in US

SCIENCE AND TECHNOLOGY

INFRASTRUCTURE
TRANSPORTATION
The US department of transportation provides regulation, supervision, & funding for all aspects of transportation, except for customs, immigration and security. The world's second largest automobile market, the United States has the highest rate of per-capita vehicle ownership in the world, with 765 vehicles per 1,000 Americans. Mass transit accounts for 9% of total U.S. work trips, ranking last in a survey of 17 countries. While transport of goods by rail is extensive, relatively few people use rail to travel. The civil airline industry is entirely privately owned and has been largely deregulated since 1978, while most major airports are publicly owned. The four largest airlines in the world by passengers carried are American; Southwest Airlines is number one.

INFRASTRUCTURE
ENERGY
The United States is the 2nd largest energy consumer in terms of total use. The U.S. ranks seventh in energy consumption per-capita after Canada and a number of other countries. 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 renewable are included. Approximately 68.9% of the oil used in the United States in 2006,[109] and 55% of oil use worldwide as documented in the Hirsch report.

INFRASTRUCTURE
EDUCATION
The United States has many competitive private and public institutions of higher education According to prominent international rankings, 13 or 15 American colleges and universities are ranked among the top 20 in the world. American public education is operated by state and local governments, regulated by the United States Department of Education. The basic literacy rate is approximately 99%. The United Nations assigns the United States an Education Index of 0.97, tying it for 12th in the world. Of Americans twenty-five and older, 84.6% graduated from high school, 52.6% attended some college, 27.2% earned a bachelor's degree, and 9.6% earned graduate degrees.

INFRASTRUCTURE
The United States life expectancy of 78.4 years at birth ranks it 50th among 221 nations. The infant mortality rate of 6.06 per thousand places the United States 176th out of 222 countries, higher than all of Western Europe. The World Health Organization ranked the U.S. health care system in 2000 as first in responsiveness, but 37th in overall performance. Health care coverage in the United States is a combination of public and private efforts, and is not universal as in all other developed countries. Approximately one-third of the adult population is obese and an additional third is overweight Federal legislation passed in early 2010 will create a nearuniversal health insurance system around the country by 2014.

HEALTH

THE AMERICAN ECONOMY-INDICATORS

GDP (purchasing power parity): -country comparison to the world: 1 $ 15.0128 trillion(2011) ,$14.72 trillion (2010 est.),$14.33 trillion (2009 est.) $14.72 trillion (2008 est.) GDP - real growth rate: -country comparison to the world: 133 3.0% (2010), -2.6% (2009 est.) , 0% (2008 est.) GDP - per capita: -country comparison to the world: 7 $46,844 (2010 est.), $46,700 (2009 est.) , $48,300 (2008 est.) Population below poverty line: 15.1% (2010 est.), 12% (2004 est.) Inflation rate (consumer prices):- country comparison to the world: 33 3.9% (September 2011),1.4% (2010 est.) , -0.3% (2009 est.) Commercial bank prime lending rate:- country comparison to the world: 150 3.25% (31 December 2009 est.) ,5.09% (31 December 2008 est.)

THE AMERICAN ECONOMY-INDICATORS

Public debt: Stock of FDI - at home:- country comparison to the world: 1 $2.581 trillion (2010 est.) , $2.41 trillion (2009 est.) Stock of FDI- abroad:- country comparison to the world: 1 $3.597 trillion (2010 est.), $3.367 trillion (2009 est.) Foreign exchange reserve: $140.607 billion (May,2011 est.)

STRUCTURE
HISTORY OF US ECONOMY
The american colonies went from marginally successful colonial economies to a small,independent farming economy,which in 1776 became the united states of america. In180 years the united grew to a huge,integrated,industrialized economy that still makes up over a quarter of the world economy. Main reasons for development were large unified market ,a supportive political system,vast areas of highly productive farmlands,vast natural resources (especially timber,coal and oil,a cultural landscape that valued entrepreneurship,a commitment to investing in material and human capital&willingness to exploit labour. In the 19th century,recessions frequently coincided with financial crisis. The depression of 1893 was one of the worst in american history,with the unemployment rate exceeding 10%for half a decade.

STRUCTURE
HISTORY OF US ECONOMY
The u.s economy grew by 3.8% from 1946 to 1973,while real median household income surged 55%(or 1.6%a year). In 1980 u.s public debt was 909 billion$-or an amount equal to 33% of americas gross domestic product.by 1990 that number had tripled to 3.2trillion$-or 55.9% of gdp.in 2001 the national debt was 5.7 trillion$.debt levels rose quickly in the following decade ,and on january28,2010,the u.s debt was reaised to 14.3 trillion$. The white house estimates that will increase 700 billion$ a year in 2019,up from 202bllion$ in 2009. In 2008 the united states economy experienced a crisis led by derivative marketss market and subprimemortgage crisis, and a declining dollar value. Today united states is home to 29.6 million small businesses,30% of the worlds millionaires,40% of the worlds billionaires,as well as 139 of the worlds500 largest companies. From its emergence as an independent nation,the united states ,the united states is has encouraged science and innovation.as a result,the united states has been the birthplace of 161 of brittanicas 321s all time greats.

STRUCTURE
GEOGRAPHY OF US ECONOMY
As the worlds largest economy, many of the worlds key financial and economic institutions reside within the US. The US is home to the world's largest stock exchange, the world's largest gold depository and reserves, and 139 of the world's 500 largest companies, which is almost twice that of any other country. 29.6 million small businesses, 30% of the world's millionaires, 40% of the world's billionaires. As a result, the United States has been the birthplace of 161 of Britannica's 321 Great Inventions The US also has an abundance of natural resources. Apart from having the worlds largest proven reserves of coal, 22.6 percent of the worlds total, the US also possesses the 14th largest proven oil reserves and the 6th largest proven natural gas reserves. Other natural resources include copper, lead, molybdenum, phosphates, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, and timber..

STRUCTURE
POLITICS OF US ECONOMY
Budget: Total revenue: $2.27 trillion (est),Total expenditures: $3.83 trillion (est) Debt payment: $0.25 trillion (est), Deficit: $1.56 trillion (est) Obama announces US$3.8 trillion 2011 budget plan for US

STRUCTURE
POLITICS OF US ECONOMY
Budget: Total revenue: $2.27 trillion (est),Total expenditures: $3.83 trillion (est) Debt payment: $0.25 trillion (est), Deficit: $1.56 trillion (est) Obama announces US$3.8 trillion 2011 budget plan for US

STRUCTURE
POLITICS OF US ECONOMY
Budget: Total revenue: $2.27 trillion (est),Total expenditures: $3.83 trillion (est) Debt payment: $0.25 trillion (est), Deficit: $1.56 trillion (est) Obama announces US$3.8 trillion 2011 budget plan for US

STRUCTURE
CURRENCY & CENTRAL BANK
The U.S. dollar is the currency most used in international transactions. Several countries use it as their official currency, and in many others it is the de facto currency.The federal government attempts to use both monetary policy (control of the money supply through mechanisms such as changes in interestrates) and fiscal policy (taxes and spending) to maintain low inflation, high economic growth, and low unemployment. A relatively private central bank, known as the Federal Reserve, was formed in 1913 to provide a stable currency and monetary policy. Despite significant loss of value due to inflation, the U.S. dollar has been regarded as one of the more 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.

STRUCTURE
CURRENCY & CENTRAL BANK
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. 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. The dollar used gold standard and/or silver standard from 1785 until 1971, when it became a floating fiat currency because of problems experienced with attempting to fix prices of commodities. Exchange rates: Indian Rupees per US Dollar: 51.232 British pounds per US dollar: 0.641 Canadian dollars per US dollar: 1.019 Chinese Yuan per US dollar: 6.373 euros per US dollar: 0.746 Japanese yen per US dollar: 78.125

STRUCTURE
SECTORS
GDP - composition by sector: agriculture: 1.2%, industry: 22.2%, services: 76.7% (2010 est.) Agriculture - products: wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; fish; forest products The US is the third largest agricultural producer in the world behind China and India. Agriculture is a vital part of US economy and society. According to the last census of agriculture in 2007, there were 2.2 million farms in the US covering an area of 922 million acres. Farmers are also one of the major political lobbyists in the US as they are primarily responsible for the countrys food demands

STRUCTURE SECTORS
Industries: Industrial production growth rate: 3.3% (2010 est.) leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining Services:Finally, services constituted 76.7 percent of the US GDP. Since the 1970s, the US economy has gradually shifted from producing goods to providing services. The large majority of service-providing jobs are found in the group of trade, transportation, and utilities occupations. Other key service industries for the US include finance, tourism and information technology.

STRUCTURE EMPLOYEMENT
Labor force: -country comparison to the world: 4 154.198 millions (2011,oct) Includes 13.897 mil. Unemployed Unemployment rate:- country comparison to the world: 108 8.6% (Nov 2011 est.), 9.7% (2010 est.) ,9.3% (2009 est.) Labor force - by occupation: farming, forestry, and fishing: 0.7% manufacturing, extraction, transportation, and crafts: 20.3% managerial, professional, and technical: 37.3% sales and office: 24.2% ,other services: 17.6% The US population for 2010 was 310.282 million. Although the US population is significantly lower compared to India and China, the US has the highest labour force participation rate in the world with 139.396 million employed.

STRUCTURE EMPLOYEMENT
The majority (35.5 percent) of the labour forces occupations are managerial, professional or technical in nature. A further 24.8 percent hold sales or office jobs, 22.6 percent are in either manufacturing, extraction, transportation and crafts, 0.6 percent are in arming, forestry or fishing, and 16.5 percent have jobs in other services. Unfortunately, the labour force has yet to recover fully from the 2008 financial crisis. Unemployment rates in the US nearly doubled in 2009 from 5.817 percent to 9.275 percent while 2010 saw a further increase to 9.73 percent.

STRUCTURE
INCOME AND WEALTH
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. In 2007, the median real annual household income rose 1.3% to $50,233, according to the Census Bureau. 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. The overall financial position of the United States as of 2009 includes $50.7 trillion of debt owed by US households, businesses, and governments, representing more than 3.5 times the annual gross domestic product of the United States. As of the first quarter of 2010, domestic financial assetsA totaled $131 trillion and domestic financial liabilities $106 trillion. Tangible assets in 2008 (such as real estate and equipment) for selected sectorsB totaled an additional $56.3 trillion

STRUCTURE
INTERNATIONAL TRADE
Exports:- country comparison to the world: 4 $1.27 trillion (2010 est.) , $1.069 trillion (2009 est.) Exports - commodities: 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 15.0% Exports - partners: Canada 19.37%, Mexico 12.21%, China 6.58%, Japan 4.84%, UK 4.33%, Germany 4.1% (2009) Imports:- country comparison to the world: 1 $1.903 trillion (2010 est.) , $1.575 trillion (2009 est.) Imports - commodities: 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) Imports - partners: China 19.3%,Canada 14.24%,Mexico 11.12%,Japan 6.14%,Germany 4.53%

STRUCTURE
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. Large foreign economies like China, Japan and the member states of the European Union 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. China's reserves are more than $3 trillion, the world's largest. China owns an estimated $1.6 trillion of U.S. securities In 2010, the total U.S. trade deficit was $633 billion, which is $1.27 trillion in exports minus $1.903 trillion in imports. The deficit on petroleum products was $270 billion. The trade deficit with China was $273 billion, a new record and up from $304 million in 1983.The United States had a $168 billion surplus on trade in services, and $803 billion deficit on trade in goods in 2010.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.

INTERNATIONAL TRADE

THE AMERICAN ECONOMY-OVERVIEW

The US is a market-oriented economy, where private individuals and business firms make most of the decisions, and the federal and state governments purchase goods and services predominantly from the private marketplace. US business firms have more flexibility than their counterparts in Western Europe and Japan in decision making when it comes to expanding the capital plant, lay off surplus workers, and develop new products. At the same time, they face higher barriers to entry in competing overseas markets than foreign firms do in the US. US firms are at or near the vanguard in technological advances, especially in computers and in medical, aerospace, and military equipment. This advantage has narrowed since the end of World War II. The onrush of technology in the US can also explain the gradual development of a two-tier labour market where those at the bottom receive less training and benefits than those at the top.

THE AMERICAN ECONOMY-OVERVIEW

Although the US strongly advocates free market principles, the government still plays a major role in dictating the US economy. The US still relies on the government to address matters that the private sector overlooks, from education to protecting the environment. From time to time, the US government has also been tasked with nurturing new industries, and also protect American companies from foreign competition. This is clearly visible from the highly subsidized agriculture industry in the US The US economy is best described as a mixed economy where the economic structure is upheld through the interactions between the private, public and international sector. As the leading economy in the world, fluctuations in the US economy have had far reaching impact on other economies throughout the globe. Ever since the 1960s, the US economy has been primarily responsible for absorbing global savings. Despite the challenge from emerging economies, the US remains the most heavily invested-into country in the world.

PROBLEMS FACING BY US ECONOMY