- 1. A study of USA Economy Presented By: Fatima Mehwish Saima
YasminYusra Yousaf
2. United States of America:
- The U.S., the USA, or America is a federal Constitutional
Republic.
- Comprises of fifty states and a federal district.
- With an area of 3.79 million square miles (9.83 million km) and
with about 305 Million people.
- The United States is the third or fourth largest country by
total area, and third largest by land area and by population.
- The United States is one of the world's most ethnicallydiverse
and multicultural nations.
3. History regarding..
- This nation was founded by thirteen colonies of Great Britain
located along the Atlantic seaboard.
- Tensions between American colonials and the British during the
revolutionary period of the 1760s and early 1770s led to the
American Revolutionary War, fought from 1775 through 1781.
- On June 14, 1775, the Continental Congress, convening in
Philadelphia, established a Continental Army under the command of
George Washington.
INDEPENDENCE 4.
- The Congress adopted the Declaration of Independence, drafted
largely by Thomas Jefferson, on July 4, 1776. which is now
celebrated annually as AMERICA'S INDEPENDENCE DAY.
- Later on SpanishAmerican War and World War I confirmed the
country's status as a military power.
- In 1945, the United States emerged from World War II as the
first country with nuclear weapons.
contd.. INDEPENDENCE 5.
- The United States is the world's oldest surviving
federation.
- It is a constitutional republic, where majority rule is
tempered by minority rights protected by law.
- It is fundamentally structured as a representative democracy,
though U.S. citizens residing in the territories are excluded from
voting for federal officials.
- The government is regulated by a system of checks and balances
defined by the U.S. Constitution.
History regarding.. GOVERNMENT 6.
- The federal government is composed of three branches:
- LEGISLATIVE:The bicameral Congress, made up of the Senate and
the House of Representatives, makes federal law, declares war,
approves treaties, has the power of the purse, and has the power of
impeachment, by which it can remove sitting members of the
government.
- EXECUTIVE:The president is the commander-in-chief of the
military, can veto legislative bills before they become law, and
appoints the Cabinet and other officers, who administer and enforce
federal laws and policies.
- JUDICIAL:The Supreme Court and lower federal courts, whose
judges are appointed by the president with Senate approval,
appoints, interpret laws, and can overturn laws they deem
unconstitutional.
contd.. GOVERNMENT 7.
- The United States has operated under a two-party system for
most of its history.
- For elective offices at all levels, state-administered primary
elections choose the major party nominees for subsequent general
elections.
- The major parties have been the Democratic Party, founded in
1824, and the Republican Party, founded in 1854.
- The winner of the 2008 presidential election, Democrat Barack
Obama, is the 44th U.S. president and the first of mixed European
and African descent. All previous presidents had been men of
European descent.
History regarding.. POLITICS 8. Economy of USA
- The largest and the most important Market in the World
- The United States of Americas economy is driven by consumers
but is troubled by high debt levels.
- US is referred to as a Free Market Economy, this is not
entirely true, since there are government regulations protecting
certain sectors, notably energy and agriculture. It can be more
accurately described as a Consumer Economy.
9. 10. GDP
- The U.S. GDP of $14.3 trillion constitutes 23% of the gross
world product at market exchange rates and almost 21% of the gross
world product at purchasing power parity (PPP), this is according
to IMF.
- The average annual growth rate of GDP of the country was
2.9%
- According to the CIA World Factbook, 2008 GDP is believed to be
$13.84 trillion
- According to the rate of GDP economy is divided into three main
sectors i.e. Ariculture, Industry & Services.
- The GDP rate by sector of year 2008 is calculated as
agriculture (0.9%), industry (20.6%), services (78.5%).
11. PER CAPITA INCOME
- The Per Capita is $45,850 in 2007.
- The most common method for calculating with the PPP method is
to use the USA as the base for comparing the price of a basket of
goods and when this is done the USA's figures are the same for both
PPP and Atlas.
- The national Average Per Capita Income using PPP method of USA
is $37500.
12. CONSUMER PRICES
- The U.S. Consumer Price is the price level of consumer goods
and services. The Bureau of Labor Statistics, which started the
statistic in 1919, publishes the CPI (Consumer Price Index) to
measure the consumer prices on a monthly basis.
- The CPI is calculated by observing price changes among a wide
array of products in urban areas and weighing these price changes
by the share of income consumers spend purchasing them.
13. UNEMPLOYMENT
- In January 2008 the unemployment rate forYoung Men were 4.4%,
Young women 4.2%,& 18% for teenagers
- The unemployment rate rose to its highest level since 1994 in
October 2008, reaching 6.5%.
14. INDUSTRIAL PRODUCTION:
- US economy is postindustrial, with the service sector
contributing 67.8% of GDP.
- The leading business field by gross business receipts is
wholesale and retail trade; by net income it is finance and
insurance.
- United States remains an industrial power, with chemical
products the leading manufacturing field.
- The United States is the third largest producer of oil in the
world, as well as its largest importer.
- It is the world's number one producer of electrical and nuclear
energy, as well as liquid natural gas, sulfur, phosphates, and
salt.
- United States is the world's top producer of corn and
soybeans.
15. TOP TEN ORGANIZATIONS
- Following Private Sector organizations were enlisted among
- the top ten Business Organizations of USA in rankings.
- International Business Machines Corporation (IBM)
- Samsung Electronics Co., Ltd.
- Matsushita Electrical Industrial Co., Ltd.
- Mitsubishi. Denki Kabushiki Kaisha
- Fujitsu Limited , McDonalds, KFC & Coca-Cola are also among
the top US Business Organizations list
16. INDUSTRIES working as ENGINE TO ECONOMY
- It is one of the most important growth drivers in the current
U.S. economy.
- Contributing nearly 40% of the growth achieved by all U.S.
Private Industry and nearly 60% of the growth of U.S. exportable
products and services.
- Also included among the largest and highest-paying employers in
the country, representing 18 million workers who earn on average
40% more than all U.S. workers.
1. INTELLECTUAL PROPERTY INDUSTRY 17.
- The industry fuels the world economy by keeping trade in
motion, linking trading partners in 24 to 48 hours.
- The FedEx is among these global air express networks which
serve 95% of the world's GDP within 48 hours or less.
- Domestic air cargo moves 8% of US GDP as product and another 2%
as services, positioning 10% of US GDP to locations where the
products become useful.
- In the year 2000, the combined direct and indirect output
generated by FedEx activities totaled nearly US$53bn throughout the
US.
contd.. 2. AIR EXPRESS 18.
- Eating-and-drinking places support far more jobs, both directly
and indirectly, than most other industries.
- This Industry is indirectly responsible for the employment of
more than 366,000 people in related industries.
- The restaurant industry ranks first among the engine drivers
industries in U.S.
contd.. 3. RESTAURANT INDUSTRY 19. EXPORTSof US
- USA is the top export market for almost 60 trading nations
- worldwide. US Export goods includes:
- Production machinery and equipment, 31.4%;
- Industrial supplies, 27.5%;
- Non-auto consumer goods, 12.7%;
- Motor vehicles and parts, 10.5%;
- Aircraft and parts, 7.6%;
- Food, feed and beverages, 7.3%;
20. 21. IMPORTSof US USA has led the world in imports while
simultaneously remaining as one of the top three exporters of the
world. US Import goods includes: Non-auto consumer goods 24.3%;
Production machinery and equipment, 20.7%; Fuels, 19.0%; Non-fuel
industrial supplies, 13.5%; Motor vehicles and parts, 13.2%; Food,
feed and beverages, 4.1%; Aircraft and parts, 1.9%; Other 3.3%.
(2007) 22. 23. TRADING PARTNERS55.48% 5.26% 77,236 GERMANY 55.79%
3.84% 31,381 GERMANY 50.22% 8.82% 129,595 JAPAN 43.31% 6.65% 54,400
JAPAN 41.40% 10.60% 155,843 MEXICO 36.66% 13.54% 110,775 MEXICO
30.80% 13.38% 196,699 CHINA 51.95% 4.24% 34,721 CHINA 17.41% 17.41%
255,928 CANADA 23.12% 23.12% 189,101 CANADA Cumulative Percentage
Percentage Millions of dollars Nation Cumulative Percentage
Percentage Millions of dollars Nation IMPORTS EXPORTS 24. US
BUSINESS CYCLE
- The worst recession in recent decades, in terms of lost output,
occurred in the 1973-75 period of oil shocks, when GDP fell by 3.1
percent, followed by the 1981-82 recession, when GDP dropped by 2.9
percent. Output fell by 1.3 percent in the 1990-91 downturn, and a
tiny 0.3 percent in the 2001 recession. The 2001 downturn lasted
just eight months.
- After an expansion that lasted just over six years, the U.S.
economy has been in recession since December 2007.
- Nowadays there is Contractions (recessions) started at the peak
of a business cycle and end at the trough .
25. Inflation Rate & Interest Rate
- In the United States, interest rates are decided by the Federal
Reserve. The Federal Reserve meets eight times a year to set
short-term interest rate targets
- Interest rates directly affect the credit market (loans)
because higher interest rates make borrowing more costly.
- By changing interest rates, the Federal Reserve tries to
achieve maximum employment, stable prices and a good level growth.
As interest rates drop, consumer spending increases and this in
turn stimulates economic growth.
26.
- During these meetings, the Consumer Price Index (CPI) which
measures inflation at the retail level, and Producers Price Index
(PPI) which measures inflation at the wholesale level and therefore
may also predict future retail prices are significant factors in
the Federal Reserve 's decision.
- It's the Federal Reserve 's job to maintain that delicate
balance. A tightening, or rate increase, attempts to head off
future inflation. An easing, or rate decrease, aims to prompt on
economicgrowth.
contd.. Percent Changes in Inflation 27. MONETARY ORFISCAL
POLICY
- 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.
28. WARS
- The wars in Iraq and Afghanistan have already cost taxpayers
$314 billion, and the Congressional Budget Office projects
additional expenses of perhaps $450 billion over the next 10
years.
- That could make the combined campaigns, especially the war in
Iraq, the most expensive military effort in the last 60 years,
causing even some conservative experts to criticize the open-ended
commitment to an elusive goal.
- The Center for Strategic and Budgetary Assessments, a
nonpartisan Washington think tank, has estimated that the Korean
War cost about $430 billion and the Vietnam War cost about $600
billion, in current dollars. According to the latest estimates, the
cost of the war in Iraq could exceed $700 billion.
- Just for the current fiscal year, the administration has
received $107 billion in special appropriations, about $87 billion
of which is directly related to military operations, according to
the Center for Strategic and Budgetary Assessments.