Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,11/7/2009,#,TheUnitedStates,ofAmerica,TheUnitedStates,ofAmerica,Unit13,Economy,Warming-upActivities,Thinkaboutthesequestionsbeforewestart:,1.Howdoyouunderstandthiseconomists,proverb“WhentheUnitedStatessneezes,the,restoftheworldcatchesacold.”?,2.WhatistheU.S.economicsystemlike?Can,youlistanyadvantagesanddisadvantagesof,thissystem?,3.WhatroledoestheUSAgovernmentplayin,theU.S.economy?,Contents,General,Introduction,IncomeInequality,U.S.EconomicSystem,TheRoleofGovernment,WhattheEconomy,ForeignTrade,Produces,Unemployment,CreativeDestruction,GeneralIntroduction,GrossDomesticProduct2011,RankingCountry,millionsof,Dollars,15,094,025,1,United,States,2China7,298,147,3Japan5,869,471,4,Germany,3,577,031,5France2,776,324,2011GDPpercapita,Rankin,Country,millions,6Denmark56,147,g,ofDollars,1Luxembourg108,832,7Australia55,590,2Norway84,444,8Sweden48,875,3Qatar76,168,9TheUnited,47,284,States,4Switzerland67,246,10theNetherlands47,172,5UnitedArab,59,717,93China4,382,Emirates,GeneralIntroduction,USthecurrentindustrial,economicand,technologicalgiant,rankingfirstincomputertechnology,space,technology,nuclearenergy,andelectronics,etc.;,producingamajorportionoftheworldsmachinery,automobiles,oil,electricalenergy,andchemicals.,Mixedeconomy,emphasizingprivateownership,federalgovernmentregulatingbusinesses,anti-trustlaws,GeneralIntroduction,Privatebusinessesproducemostgoodsand,services.,Twothirdsoftheoutputgoestoindividuals;,Onethirdisboughtbygovernmentandbusiness.,“Consumereconomy”,GeneralIntroduction,Questionfordiscussion,WhyistheUnitedStatesofAmericasoaffluent?,1.thevastdimensionsandamplenatural,resources,2.aremarkablemobilityintheAmerican,population-amobilitythatcontributesa,usefulflexibilitytobusinesslife.,3.entrepreneurialspirit:twocontraryviews:,pleasingGod;materialacquisitiveness,GeneralIntroduction,3.avarietyofinstitutionalfactors:thefoundersof,Americaspoliticalinstitutionssoughttolimit,governmentalpowerswhilewideningopportunities,forindividualinitiative;Therelativereluctanceof,Americanpoliticalleaderstointervenein,economicactivitiesgavegreatfreedomtomarket,forces.,Oneresult,wasarapidaccumulationofcapital,whichcouldthenbeusedtoproducefurther,growth.,IIU.S.EconomicSystem,Questionsfordiscussion:,Whatdoesaneconomicsystemreferto,?,DoestheU.S.A.haveamarketorplannedor,mixedeconomy,?,IIU.S.EconomicSystem,Aneconomicsystemreferstothelawsand,institutionsinanationthatdeterminewhoowns,economicresources,howpeoplebuyandsellthose,resources,andhowtheproductionprocessmakes,useofresourcesinprovidinggoodsandservices.,IIU.S.EconomicSystem,TheUnitedStateshasamixedeconomy.Thatis,it,doesnothaveapuremarketeconomy,andthe,governmentplaysanimportantroleinthenational,economy.,IIIWhattheEconomyProduces,PleasenamethefollowingU.S.-madeproducts.,IIIWhattheEconomyProduces,AgriculturesshareoftheU.S.economyhas,droppedsteadilyforcenturies.,TheUnitedStatesremainstheworldssecond,biggestproducerofcropsandlivestock,behind,ChinaandaheadofIndia,BrazilandRussia.,IIIWhattheEconomyProduces,In2008thefourlargestU.S.industries,chemicals,computersandelectronicproducts,fabricatedmetalproductsandfoodaccounted,for44percentofU.S.factoryoutput.,U.S.manufacturinghaslongfacedstrong,competitionfromindustrializedEuropean,economiesandJapanandnowfacesevenmore,challengesfromrapidlyemergingeconomies.,IIIWhattheEconomyProduces,Sincethe1950s,theservicessectorhasdominated,theU.S.economy.Evenafterthe2008-2009,financialcrisis,finance,insuranceandrealestate,accountedformorethan21percentofGDP.,IVUnemployment,unemployment:notbeingabletofindajobdespiteactively,lookingforworkforatleast30consecutivedays.,ThehighestU.S.unemploymentrateofthe20thcentury,occurredin1933,whentheGreatDepressionleftalmost25,percentofthelaborforcewithoutwork.,Threemajorkindsofunemployment:frictional,cyclical,andstructural.,IVUnemployment,Frictionalunemploymentoccursasaresultoflabormobility,when,workerschangejobsorwaittobeginanewjob.,Cyclicalunemploymentoccurswhentheeconomygoesintoarecession.,Thebasiccausesofcyclicalunemploymentaredecreasesinthelevelsof,consumption,investment,orgovernmentspendingintheeconomy,ora,decreaseinthedemandforgoodsandservicesexportedtoother,countries.,Structuralunemploymentoccurswhenpeoplewhoarelookingforjobsdo,nothavetheeducationorskillstofillthejobsthatarecurrentlyavailable.,IVUnemployment,PleasedescribethetrendofU.S.unemploymentaccordingtothechartbelow:,Jan,2010toAugust,2012,VIncomeInequality,WhatfactorscontributetotheincomeequalityintheU.S.?,Wagesforskilledworkers,thosewithmoreeducationandtraining,haveincreasedquicklybecausethesupplyoftheseworkersinthe,U.S.hasnotrisenasquicklyasdemandfortheseworkers.,Inaddition,wagesforunskilledlaborintheUnitedStateshave,beenhelddownmorethaninothernationsasaresultofU.S.,immigrationpolicies.,Finally,governmentassistanceprogramsforlow-incomefamilies,tendtobemoreextensiveandgenerousinotherindustrialized,marketeconomiesthantheyareintheUnitedStates.,VIncom