Economy of the United States

英美概况中关于美国经济的多方面介绍。History and Growth；Commercial and Non-profit Firms；Government and the economyHouseholds；International trade；Problems and challenges for the U.S. ecnonmy

Economy of the United States

• History and Growth
  • a mixed economy
    • privately-owned sector
    • government-owned or public sector
    • capitalism prevails
  • The US GDP has progressed at a rate of 3.4% per year between 1959 and 2006
    • recessions
  • service industry workers increased
  • manufacturing workers declined
  • 1970-1990
• Commercial and Non-profit Firms
  • Business organization
    • The sole proprietorship
      • accounts for 3/4 of all American firms
      • quickest and easiest way to form and begin a business
      • expansion is limited by the owner's ability to borrow money
    • The partnership
      • The firm is owned by 2 or more partners combining their resources
      • Liability is a major issue
    • The corporation
      • 1/5 of Amriican busnisses but produce 90% of the private sector output
      • has many owners
      • corporations must pay income taxes
      • the shareholders are never responsible for liability or bankruptcy losses
  • The stock and bond markets
    • Stock
      • Stock owners earn dividends
      • the largest and most famous stock market is the New York Stock Exchange(NYSE)-wall street
    • Bonds
      • Abond is a security in which the seller,or issuer,agrees to pay the owner of the bond a stated amount of money at a stated time in the future
      • bonds are loans from investors to corporations or gvt
  • Non-profit firms
    • these firms have charitable goals
    • they spend all the money they earn
    • The gvt exempt them form paying most taxes
    • to keep their costs down, they rely on volunteers
  • Banking
    • The easiest method for saving and borrowing money
    • The federal gvt regulates banking
    • <<checking accounts>>
      • allowing the owner to deposit money in banks and write checks as payment for goods and services
    • credit cards are issued when the bank determines that aperson is financially able to repay loans
• Households
  • Income distribution
    • Americans earn $60,000(2018)
    • 73% of adult males and 69%of adult females have jobs
    • almost 40 millions of people live in poverty in the US
    • Poverty is concentrated in Southern states
  • Saving rates and methods
    • Americans currently save about 1% of their income/year
    • way to save for the future
      • Saving account
      • investment
      • retirement pensions
        • a defined benefit pension
        • Defined contribution pensions
    • Home ownership
      • 2/3 of Americans own a home
• Problems and challenges for the U.S. ecnonmy
  • The slowing of the ecnonmy's growth rate
  • more difficult for young generations to improve their standards of conditions
  • The unemployment rate was decreasing but jumped up with covid 19
  • many Americans are poor
  • Inflation
    • more difficult for Americans to save money
• International trade
  • quantity of trade
    • since 1970,exports have gone from 6% of GDP to about 11% of GDP
    • Canada and mexico remain in the top 3 argest exporters and importers,in addition to China
  • Trade policies
    • for tariffs on Chinese or SouthKorean products,it's up to 25%
    • The north American Free Trade Agreement
    • WTO
• Government and the economy
  • The federal government
    • a budget of about 20% of the country's GDP
    • A major purchaser of good and services.
    • Federal taxation,deficit and debt
      • major receipts
        • income taxes paid by households(45%)
        • income taxes paid by corporations(15%)
        • payroll taxespaid by workers(35%)
      • Individuals pay income based on a percentage of their total income
      • since 1969,the federal gvt has had a budget deficit-spending more money than it receives
    • Welfare and help to the poor
      • The largest welfare program is Temporary Assistance for Needy Families(FANT),cash given to poor families ($300-400/month)
      • Supplemental Security Income(SSI)---disabled or elderly
      • Food Stamp Program
        • $100/month.Store owners redeem the food stamp money from the federal government
      • a welfare recipient's income may be to high for Medicare but too low to pay for private health system
    • Government regulation
      • protect the consumer's health and safety
      • minimum wage
      • For any time that exceeds 40h/week,employers are required to pay 50% extra per hour
    • The money supply
      • 1913 creation ofthe Federal Reserve System
        • since then the US government has controlled the supply of money
    • Social security and medicare
      • federal gvt developed a comprehennsive program of payments and benefits for retired workers and their spoues
        • social Security pays cash to retired workers
        • Medicare provides them with medical care
  • The State and local governments
    • Taxation
      • Income taxation of workers and corporations represents 15% of the state and local revenues
    • State and local government expenditures
      • education
        • 1/3 of the state and local government spending
      • welfares
      • Road construction/maintenance