Economy of the US

1. Economy of the US

2. Introduction General: Currency United States Dollar (USD) Fiscal year (财政年度) 1 October - 30 September Trade organizationsNAFTA (North American Free Trade Agreement ), WTO (World Trade Organization), OECD (Organization for Economic Co-operation and Development) and others

3. Introduction General Statistics: GDP (PPP) $14.26 trillion (2008)[ GDP growth 1.1% (2008) / -6.2% (Q4 2008) GDP per capita $46,800 (2008) (10th) GDP by sector agriculture (0.9%), industry (20.6%), services (78.5%) Inflation (CPI) 0.0% (Jan 2008 to Jan 2009) Population below poverty line 12.5% (2007) Labor force 154.5 million (includes unemployed) (May 2008) Labor force by occupation managerial and professional (35.5%), technical, sales and administrative support (24.8%), services (16.5%), manufacturing, mining, transportation, and crafts (24%), farming, forestry, and fishing (0.6%) (excludes unemployed) (2007) Unemployment 8.1% (February 2009)) Main industries petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining, defense

4. Introduction External Statistics Exports $1.3 trillion (2008) Export goods industrial supplies, 29.8%; production machinery and equipment, 29.5%; non-auto consumer goods, 2.4%; motor vehicles and parts, 9.3%; food, feed and beverages, 8.3%; aircraft and parts, 6.6%; others, 4.1%. (2008) Main export partners Canada, Mexico, China, Japan, United Kingdom, Germany *Capital goods refer to plant and machinery used to manufacture goods.

5. US Export Partners

6. Introduction External Statistics Imports $2.1trillion (2008) Import goods non-auto consumer goods 23.0%; fuels, 22.1%; production machinery and equipment, 19.9%; non-fuel industrial supplies, 14.8%; motor vehicles and parts, 11.1%; food, feed and beverages, 4.2%; aircraft and parts, 1.7%; others 3.2%. (2008)Main import partners Import partners China, Canada, Mexico, Japan, Germany Gross External Debt$13.77 trillion (30 June 2008) ($40000 per capita)

8. Introduction Public finances statistics Public Debt $10.88 trillion (Feb. 2009) 77% of GDP Revenues $2.523 trillion (2008) Expenses $3.150 trillion (2008) Economic aid ODA $19 billion, 0.2% of GDP (2004) (Official Development Assistance)

9. US Monetary Systems Federal Reserve Bank: The US central bank

10. US Monetary Systems Central bank: Federal Reserve Bank • The Federal Reserve Banks — more commonly known as the Federal Reserve or simply the Fed — is the United States' central bank, charged with ensuring the stability and flexibility of the nation's monetary and financial systems. • The Federal Reserve is structured to be independent within the federal government.  The Federal Reserve System follows its Congressional charter; the Chairman of the Board of Governors reports to Congress; but the Fed's decisions are independent of both the Congress and the President of the United States. • The Federal Reserve Banks is made up of the Board of Governors, the Federal Open Market Committee, and 12 regional banks. • Since the Fed was established by the Federal Reserve Act in 1913, its roles and responsibilities are as follows: To guide monetary policy for economic stability. To regulate and supervise banking institutions in the U.S. To provide financial services to banking institutions, the U.S. government, and foreign official institutions; as well as to play a major role in operating the nation's payment system.

11. US Dollar Coins Coins

12. US Dollar Notes 1 dollar: George Washington (1st) 2 dollars: Thomas Jefferson (3rd) 5 dollars: Abraham Lincoln (16th) 10 dollars: Alexander Hamilton (One of founders) 20 dollars: Andrew Jackson (7th) 50 dollars: Ulysses S. Grant (18th) 100 dollars: Benjamin Franklin 500 dollars: William McKinley (25th) 1000 dollars: Grover Cleveland (22nd) 5000 dollars: James Madison (4th) 10000 dollars: Salmon P. Chase (U.S. Treasury Secretary under President Abraham Lincoln; Chief Justice of the United States)

13. Introduction • The economy of the United States is the largest national economy in the world. • Its gross domestic product (GDP) was estimated as $13.8 trillion in 2007. • It is a mixed economy in that private firms make the majority of the microeconomic decisions while being regulated by the government. • The U.S. economy maintains a high level of output per person (GDP per capita, $46,000 in 2007, ranked at around number ten in the world). • 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 2008, 72% of the economic activity in the U.S. came from consumers.

14. Introduction • The economic history of the United States has its roots in European settlements in the 16th, 17th, and 18th centuries. The American colonies progressed from marginally successful colonial economies to a small, independent farming economy, which in 1776 became the United States of America. In 230 years the United States grew to a huge, integrated, industrialized economy that 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), • and an entrepreneurial spirit and commitment to investing in material and human capital. • The economy has maintained high wages, attracting immigrants by the millions from all over the world.

15. Year-on-Year change in new worth of US households and nonprofit organizations

16. Government intervention • Government intervention  mixed economy • The U.S. federal government regulates private enterprise in numerous ways. Regulation falls into two general categories: economic and social regulations. • Economic Regulations. • One effort of economic regulations seeks, 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 reasonable profits. • Another form of economic regulation, antitrust law, seeks to strengthen market forces. The government have used antitrust law to prohibit practices or mergers that would unduly limit competition. • A third effort is made by the federal government which attempts to use both monetary policy and fiscal policy to maintain low inflation, high economic growth, and low unemployment. A relatively independent central bank, known as the Federal Reserve is 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.

17. Government intervention US Historical Inflation Rate

18. Social regulations • Social regulations • Since the 1970s, government has also exercised control over private companies to achieve social goals. For example, 1. the Occupational Safety and Health Administration provides and enforces standards for workplace safety, 2. the United States Environmental Protection Agency provides standards and regulations to maintain air, water, and land resources, and 3. the U.S. Food and Drug Administration regulates what drugs may reach the market, and also provides standards of disclosure for food products.

19. Social regulations • Two means to achieve social regulations • Direct services • Each level of government provides many direct services. The federal government 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. Government spending has a significant effect on local and regional economies—and even on the overall pace of economic activity. • 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.

20. Social regulations • Direct assistance • Government provides many kinds of help to businesses and individuals. It offers low-interest loans and technical assistance to small businesses, provides loans to help students attend college. Government actively promotes exports and seeks to prevent foreign countries from maintaining trade barriers that restrict imports. • Government supports individuals who cannot or will not adequately care for themselves. • Social Security accounts for the largest portion of Americans' retirement income. The Medicare program pays for many of the medical costs of the elderly. The Medicaid program finances medical care for low-income families. In many states, government maintains institutions for the mentally ill or people with severe disabilities. The federal government provides food stamps to help poor families obtain food, and the federal and state governments jointly provide welfare grants to support low-income parents with children. • Although some of these programs encountered financial difficulties in the 1990s and various reforms were proposed, they continued to have strong support from both of the United States' major political parties.

21. Economic Sectors Sales per sector compared to employees per sector in the United States economy in the year 2002

22. Economic Sectors Sector Establishments Sales, receipts, Annual payroll Paid employees or shipments ($1,000)($1,000) Mining 24,087 182,911,093 21,173,895 477,840 Utilities 17,103 398,907,044 42,417,830 663,044 Construction 710,307 1,196,555,587 254,292,144 7,193,069 Manufacturing350,828 3,916,136,712 576,170,541 14,699,536 Wholesale trade435,521 4,634,755,112 259,653,080 5,878,405 Retail trade 1,114,637 3,056,421,997 302,113,581 14,647,675 Transportation & warehousing 199,618 382,152,040 115,988,733 3,650,859 Information 137,678 891,845,956 194,670,163 3,736,061 Finance & insurance 440,268 2,803,854,868 377,790,172 6,578,817 Real estate & rental & leasing 322,815 335,587,706 60,222,584 1,948,657 Professional, scientific, & technical services 771,305 886,801,038 376,090,052 7,243,505 Management of companies & enterprises 49,308 107,064,264 178,996,060 2,605,292 Administrative & support & waste management & remediation service 350,583 432,577,580 206,439,329 8,741,854 Educational services 49,319 30,690,707 10,164,378 430,164 Health care & social assistance 704,526 1,207,299,734 495,845,829 15,052,255 Arts, entertainment, & recreation 110,313 141,904,109 45,169,117 1,848,674 Accommodation & food services 565,590 449,498,718 127,554,483 10,120,951 Other services (except public administration) 537,576 307,049,461 82,954,939 3,475,310 Totals 6,891,382 21,362,013,726 3,727,706,910 108,991,968

23. Primary industry • American agriculture

24. Agriculture: natural advantages • The United States is blessed with fertile soil, and a good climate for its agriculture. • About one-fifth of the land area is farmed. Some 394 million acres are harvested cropland, and about 890 million acres are permanent pastureland. • Most of the important crop-growing areas in the United States are in the central plain region between the Appalachians and the Rockies. • Others are in the Atlantic coast plain and the great basins west of the Rockies. • Agriculture is a major industry in the United States and the country is a net exporter of food.

25. Agriculture: natural advantages

26. Agriculture: historical development • In the U.S., farms spread from the colonies westward along with the settlers. In cooler regions, wheat was often the crop of choice when lands were newly settled, leading to a “wheat frontier” that moved westward over the course of years. • Also very common in the antebellum Midwest was farming corn while raising hogs, complementing each other especially since it was difficult to get grain to market before the canals and railroads. • After the “wheat frontier” had passed through an area, more diversified farms including dairy cattle generally took its place. • Warmer regions saw plantings of cotton and herds of beef cattle. • In the early colonial south, raising tobacco and cotton was common, especially through the use of slave labor until the Civil War. In the northeast, slaves were used in agriculture until the early 19th century. In the Midwest, slavery was prohibited by the Freedom Ordinance of 1787.

27. Agriculture: historical development Slave labor in the southern plantations

28. Agriculture: development • The introduction and broad adoption of scientific agriculture since the mid nineteenth century has made a large improvement in the USA’s economic growth. • US established in each state a land-grant university (with a mission to teach and study agriculture) and a federally-funded system of agricultural experiment stations and cooperative extension networks which place extension agents in each state.

29. Agriculture Crop duster

30. Agriculture: productsTop twenty agricultural products by production Rank product mass (tonnes) 1. Corn 256,904,992 2. Cattle meat 11,736,300 3. Cow's milk, whole, fresh 78,155,000 4. Chicken meat 15,006,000 5. Soybeans 65,795,300 6. Pig meat 8,574,290 7. Wheat 63,589,820 8. Cotton lint 3,967,810 9. Hen eggs 5,141,000 10. Turkey meat 2,584,200 Rank product mass (tonnes) 11. Tomatoes 12,275,000 12. Potatoes 20,821,930 13. Grapes 6,125,670 14. Oranges 10,473,450 15. Rice, paddy 9,033,610 16. Apples 4,241,810 17. Sorghum 10,445,900 18. Lettuce 4,490,000 19. Cottonseed 6,072,690 20. Sugar beets 27,764,390

31. Agriculture: crops Top ten crops by value (1 billion dollars) 1. Corn $24.4 2. Soybean $17.7 3. Wheat $8.6 4. Alfalfa (苜蓿) $8.3 5. Cotton $6.1 6. Hay, other than alfalfa $5.1 7. Tobacco $3.0 8. Rice $1.7 9. Sorghum $1.4 10. Barley $.9

32. Agriculture: livestocks Top five livestock industries in the United States 1. Dairy Cattle 2. Beef Cattle 3. Swine (also called hogs or pigs) 4. Poultry 5. Sheep Inventories in the United States (1997) chickens 403,000,000 cattle 99,500,000 hogs 59,900,000 sheep 7,600,000

33. Agriculture: supports • Agriculture in the United States is primarily governed by periodically-renewed U.S. farm bills. • Pro-agriculture Americans form an extremely powerful interest group in American politics and have since the founding of the United States. • Government aid includes research into crop types and regional suitability as well as many kinds of subsidies, some price supports and loan programs. • A large part of the U.S. farm workforce is made up of migrant and seasonal workers, many of them recent immigrants from Latin America or aliens working under work permits. • In 1870, half of the US population was employed in agriculture. As of 2006, less than 1.5% of the population is directly employed in agriculture. • In 2004, of the 145 million employed workers in the US, 834,000 of them held jobs as agricultural workers. 83% of these jobs were as farm workers.

34. Secondary Industry US industrial output in comparison with other countries (2005)

35. Industry: an introduction • USA is a leading manufacturing power in the world with a yearly industrial output 2,696,880 millions of US Dollars (data for January 2008). • The US manufacturing is highly diversified and technologically advanced. • Main industries are petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining.

36. Forestry: the history • When European settlers first arrived in North America, half of the land on the continent was covered with forests. • Beginning with the early colonists, the natural vegetation was altered drastically as farmers cleared land for crops and pastures, and cut trees for firewood and lumber. • Only 10 percent of the original virgin timber remains. • Beginning in the 1990s the forest products industry underwent a transformation. New environmental requirements, designed to protect wildlife habitat and water resources, were changing forest practices, particularly in the West. • The amount of timber cut on federal land declined.

37. Forestry: today • At the beginning of the 21st century, • less than 1 percent of the country’s workforce was involved in the lumber industry, and • forestry accounted for less than 0.5 percent of the GDP. • Nevertheless, forests represent a crucial resource for U.S. industry. • Forest resources are used in producing housing, fuel, foodstuffs, and manufactured goods. • The United States leads the world in lumber production and is second in the production of wood for pulp and paper manufacture. • These high production levels, however, do not satisfy all of the U.S. demand for forest products. • The United States is the world’s largest importer of lumber, most of which comes from Canada.

38. Forestry: distribution • Forests in the South supply about one-third of the lumber, nearly three-fifths of the pulpwood, and almost all the turpentine (松节油), resin (松脂), and wood tar (木焦油) produced in the United States. • Longleaf, shortleaf, loblolly(一种松树), and slash pine (沼泽松) are the most important commercial trees of the southern coastal plain. • Commercially valuable hardwood trees, such as gum (树胶树) , ash (光腊树), pecan (美洲山核桃 ), and oak, grow in the lowlands along the rivers of the South. • The Appalachian Highland and parts of the Great Lakes area have excellent hardwood forests. • Hickory (山核桃木), maple, oak, and other hardwoods removed from these forests provide fine woods for the manufacture of furniture and other products.

39. Fishing • The U.S. waters off the coast of North America provide a rich marine harvest. • Humans consume approximately 80 percent of the catch as food. The remaining 20 percent goes into the manufacturing of products such as fish oil, fertilizers, and animal food. • In most years, the United States ranks fifth among the nations of the world in weight of total catch, behind China, Peru, Chile, and Japan. • Marine species dominate U.S. commercial catches, with freshwater fish representing only a small portion of the total catch. • Much of the annual U.S. tonnage of commercial freshwater fish comes from aquatic farms along the lower Mississippi River. • Mississippi leads all states in the production of catfish on farms.

40. Fishing • Marine catch for commercial purposes • Shellfish (贝) account for only one-sixth of the weight of the total catch but nearly one-half of the value; • Finfish (长须鲸) represent the remaining share of weight and value. • Alaskan pollock (鳕鱼类) and menhaden (鲱鱼), a species used in the manufacture of oil and fertilizer, are the largest catches by tonnage. • The most valuable seafood harvests are crabs, salmon, and shrimp, each representing about one-sixth of the total value. • Other important species include lobsters, clams, flounders (比目鱼), scallops (扇贝), Pacific cod (鳕鱼), and oysters (牡蛎). • Alaska leads all states in both volume and value of the catch. • Other leading fishing states, ranked by value, are Louisiana, Massachusetts, Texas, Maine, California, Florida, Washington, and Virginia.

41. Mining • As a country of continental proportions, the United States has within its borders substantial mineral deposits. • America leads the world in the production of phosphate (磷酸盐), an important ingredient in fertilizers, and • America ranks second in gold, silver, copper, lead, natural gas, and coal. • Petroleum production is third in the world, after Russia and Saudi Arabia.

42. Mining • Mining contributes less than 2 percent of annual GDP and employs less than 0.5 percent of all U.S. workers. • Although mining accounts for only a small share of the nation’s economic output, it was historically essential to U.S. industrial development and remains important today.

43. Mining • The nation’s three chief mineral products are fuels. • In order of value, they are natural gas, petroleum, and coal. In 2003 the United States produced 20 percent of the world’s natural gas, 20 percent of its coal, and 11 percent of its crude oil. • Natural gas and oil: Texas and Oklahoma, the Gulf Coast region of Texas and Louisiana, and the North Slope of Alaska. • Offshore deposits account for 13 percent of total production. • Coal production, important for industry and for the generation of electric power, comes primarily from Wyoming, West Virginia, and Kentucky.

44. Manufacturing • The United States leads all nations in the value of its yearly manufacturing output. • Manufacturing employs about 12 percent of the nation’s workers and accounts for 14 percent of annual GDP. • Although manufacturing remains a key component of the U.S. economy, it has declined in relative importance since the late 1960s. From 1970 to 2004 the number of employees in manufacturing declined from 20.7 million to 14.3 million.

45. Manufacturing • The nation’s industrial core first developed in the Northeast. This area still has the greatest number of industrial firms, but its share of these firms is smaller than in the past. • Located in this area are five of the top seven manufacturing states—New York, Ohio, Illinois, Pennsylvania, and Michigan —which together were responsible for approximately 27 percent of the value added by manufacturing in all states. Important products in this region include motor vehicles, fabricated metal products, and industrial equipment. • New York, New Jersey, and Pennsylvania specialize in the production of machinery and chemicals. This area bore the pressure of the decline in manufacturing’s value of national output, losing a total of 800,000 jobs from the early 1980s to the early 1990s.

46. Manufacturing • In the South the greatest gains in manufacturing have been in Texas. • The most abnormal growth in the West has been in California, which in the late 1990s was the leading manufacturing state, accounting for more than one-tenth of the annual value added by U.S. manufacturing. • California dominates the Pacific region, which specializes in the production of transportation equipment, food products, and electrical and electronic equipment.

47. Energy • The United States consumes 25 percent of the world’s energy, far more than any other country, despite having less than 5 percent of the world’s population. • The United States also produces a disproportionate share of the world’s total output of goods and services, which is the main reason the nation consumes so much energy. • In addition, the U.S. population is spread over a larger area than are the populations in many other industrialized nations, such as Japan and the countries of Western Europe. • This lower population density in the United States results in a greater consumption of energy for transportation, as truck, trains, and planes are needed to move goods and people to the far-flung American citizenry. • As a result of the nation’s high energy consumption, the United States accounts for nearly 20 percent of the global emissions of greenhouse gases. These gases—carbon dioxide, methane (甲烷), and oxides of nitrogen—result from the burning of fossil fuels, and they can have a harmful effect on the environment.

48. Tertiary industry:Service and Commerce Sector • By far the 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 20th century, creating many new jobs and more than offsetting the slight loss of jobs in manufacturing industries. • In 1998 commerce and service industries generated 72 percent of the GDP and employed 75 percent of the U.S. workforce. • Most of these jobs are classified as white collar, and many require advanced education. • They include many high-paying jobs in financing, banking, education, and health services, as well as lower-paying positions that require little educational background, such as retail store clerks, janitors, and fast-food restaurant workers.

49. Tertiary industry:Service and Commerce Sector • In 1995 the U.S. financial market had a total of • 628,500 institutions, 7.0 million employees. • These institutions included: • investment, commercial, and savings banks; • credit unions; • mortgage banks; • insurance companies; • mutual funds; • real estate agencies; • and various holdings and trusts.

50. Tertiary industry:Service and Commerce Sector • Banking services: “banks + SLA + insurance companies” 1. Banks play a central role in any economy • In 1998 the United States had 10,481 insured banks and savings institutions with a total of 84,123 banking offices.. • Large banks in the United States, in terms of assets, include • Citibank (花旗银行) headquartered in New York City; • J.P. Morgan Chase & Co. (摩根大通集团 ), headquartered in New York City; • Bank of America (美国银行)headquartered in Charlotte, North Carolina; • Wachovia/First Union[美联银行(瓦乔维亚银行) ], headquartered in Charlotte, North Carolina; and • Wells Fargo (富国银行 ), headquartered in San Francisco, California.