THE ECONOMY OF THE UNIT ED STATES OF AMERICA

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The US economy is immense. In 2001 it included more than 270 million consumers and 20 million businesses. In total, the annual value of all goods and services produced in the United States, known as the gross domestic product (GDP), exceeded $9.25 trillion in 2001. Over 80 percent of the goods and services purchased by US consumers each year are made in the United States, the rest is imported from other nations.

The United States has a mixed economy, in which some industries are owned by the state and others are owned by individuals and groups of people. It is a dynamic, free-market system that is constantly developing the choices and decisions made by millions of citizens who play multiple roles as consumers, producers, investors and voters. It is individual producers and consumers who determine the kinds of goods and services produced and the prices of those products. But though a great majority of productive resources are privately owned, the federal government does play an important part in the national economy. It provides services and goods that the market cannot provide effectively, such as national defense, public goods and services, assistance programs for low-income families, and interstate highways and airports. The government also provides incentives to encourage the production and consumption of certain types of products, and discourage the production and consumption of others, establishes guidelines regulating environmental protection.

The United States is the largest trading nation in the world, exporting and importing more goods and services than any other country. The international trade and the policies that encourage or restrict the growth of imports and exports have a wide-ranging effect on the US economy. It increases the total level of production and consumption in the world, lowers the cost of production and prices, that consumers pay, and increases the living standard. The total value of US imports and exports has amounted to 25 percent of the country's GDP.

The US economy, the largest in the world, produces many different goods and services. We can see it more easily dividing economic activities into four sectors that produce different kinds of goods and services. The first sector provides goods that come directly from natural resources: agriculture, forestry, fishing, and mining. The second sector includes manufacturing and the generation of electricity. The third sector, made up of commerce and services, is now the largest part of the US economy. It comprises financial services, wholesaling and retailing, government services, transportation, entertainment, tourism, and other businesses that provide a wide variety of services to individuals and businesses. The fourth major economic sector deals with recording, processing, and transmission of information, and includes the communication industry.

THE ECONOMY OF THE UNITED STATES OF AMERICA

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Manufacturing and Energy Sectors.The United States leads all nations in the value of its yearly manufacturing output. Manufacturing employs about one-sixth of nation's workers and accounts for 17 percent of annual gross domestic product. Although manufacturing remains a key component of the US economy, it has decreased in relative importance. From 1957 to 1995 the number of employees in manufacturing industry declined slightly while the total labor force grew.

The leading categories of the US manufactured goods are chemicals, industrial machinery, electronic equipment, processed foods, and transportation equipment. Transportation equipment includes passenger cars, trucks, air planes, space vehicles, ships and boats, and railroad equipment, and various kinds of construction machinery, refrigeration equipment and computers. Factories in the United States build millions of computers, and the country occupies second place in the world in the production of electronic components and exercises the world leadership in the development and production of computer software.

The manufacture of metal is concentrated in the nation’s industrial core region. Iron ore from the Lake Superior district, plus that imported from Canada and other countries and Appalachian coal are the basis for a large iron and steel industry. Different branches of industry such as textile, clothing, leather goods, food processing, precision instruments, lumber, furniture, tobacco and many other are highly developed too.

The energy to power the nation's economy– providing fuels for its vehicles and electricity for its machinery and appliances – is derived primarily from petroleum, natural gas, and coal. Petroleum provides 39 percent and coal - 22 percent of the total energy consumed in the USA.

Service and Commerce Sector. By farthe largest sector of the economy in terms of output and employment is the service and commerce sector. This sector grew rapidly during the last part of the 20^th century and now it employs 75 percent of the US workforce. The growth of the sector has resulted in creating many new jobs in financing, banking, education and health services requiring advanced education. There are also low-paidpositions that require less educational background. They are store clerks, carriers, fast-food restaurant workers and others.

Transportation-related businesses are an important part of the service industry. Trucks, railroads, and ships transport goods to the markets across the country. Commercial airlines, railroads, bus companies, and taxis move tourists and commuters to their destinations. The US transportation network spreads into all sections of the country, but the network of railroads and highways is much denser in the eastern half of the United States, where it serves the nation's largest urban, industrial, and population concentrations.

Large and small airports across the nation have formed a network providing air transportation to individual travelers. The nation has more than 5 thousand public and more than 13 thousand private airports.

One of the largest service industries in the United States is travel and tourism. In recent decades, visitors from overseas have become an increasingly important part of the US tourism business. Domestic and foreign travelers visit theme parks, natural wonders, and points of interest in major cities. Tourism is mainstay of the economies of California, Florida and Hawaii.

The entertainment business plays a vital part in the nation's life. Motion picture production has been centered in Hollywood, California, since the early decades of the 20th century. Other entertainment industries include theatre, which tends to be located in larger urban areas, particularly in New York City, (ever since the 1890s Broadway has reigned as the “Great White Way”, the major theatrical centre of the country); television, with major networks operating out of the New York City area. Atlanta is the hometown of the most famous TV-company CNN (Cable News Network). CNN is a 24-hour news station launched on cable television in 1980. It reaches over 75 million homes in 150 countries.

Information and Technology Sector. By the end of the 20th century many technological innovations had been introduced in the United States. One of the most far-reaching technological advances of the late 20th century took place in the field of computer science. The development of the personal computer allowed many individuals to own computers as well as small businesses to use computer technologies in their operations.

The Internet began in the 1960s as a small network of academic and government computers primarily involved in research for the US military. Beginning with a few researches ata handful of universities and government facilities, the Internet quickly became a worldwide network providing users with information on a range of subjects and allowing them to pay bills, order airline tickets, purchase goods via computer over the Internet.

The communication systems in the United States are among the most developed in the world. Television, newspapers, and other publications, provide most of the country's news and entertainment. On the average there are two radios and one television for every person in the United States. Although the economic output of the communications industry is relatively small, the industry has enormous importance to the political, social, and intellectual activity of the nation. Most communication media in the USA are privately owned and operate independently of government control.

Date: 2015-12-11; view: 803