Mother Earth Travel > Country Index > United States > Map Economy |
| Economy - overview: The United States has the largest and most
technologically powerful economy in the world, with a per capita GDP of $36,300. In this market-oriented economy, private individuals and business
firms make most of the decisions, and government buys needed goods and
services predominantly in the private marketplace. US business firms enjoy
considerably greater flexibility than their counterparts in Western Europe
and Japan in decisions to expand capital plant, lay off surplus workers,
and develop new products. At the same time, they face higher barriers to
entry in their rivals' home markets than the barriers to entry of foreign
firms in US markets. US firms are at or near the forefront in
technological advances, especially in computers and in medical, aerospace,
and military equipment, although their advantage has narrowed since the
end of World War II. The onrush of technology largely explains the gradual
development of a "two-tier labor market" in which those at the
bottom lack the education and the professional/technical skills of those
at the top and, more and more, fail to get comparable pay raises, health
insurance coverage, and other benefits. Since 1975, practically all the
gains in household income have gone to the top 20% of households. The years 1994-2000 witnessed solid increases in real output, low inflation rates, and a drop in unemployment to below 5%. The year 2001 witnessed the end of the boom psychology and performance, with output increasing only 0.3% and unemployment and business failures
rising substantially. The response to the terrorist attacks of September 11 showed the remarkable resilience of the economy. Moderate recovery is expected in 2002, with the GDP growth rate rising to 2.5% or more. A major short-term problem in first half 2002 was a sharp decline in the stock market, fueled in part by the exposure of
dubious accounting practices in some major corporations. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade deficits, and stagnation of family income in the lower economic groups.
GDP:
purchasing power parity - $10.082 trillion (2001 est.) SOURCE: The World Factbook (2002) |
Mother Earth Travel > Country Index > United States > Map Economy