The Economy of the USA

GDP

The USA has the largest economy in the world today, it's total GDP was $15.09 trillion in 2011, this is roughly equivalent to 23.52% of the World's economy. From 1960 until 2010, the USA's GDP had averaged $5.33 trillion, reaching it's all time high of $14.58 trillion in December 2010 and since then has been exceeded in 2011. The USA's record low was in December 1960 where GDP totaled only $520.5 billion.

The USA's growth rate expanded by 1.9% in the first quarter of 2012. This has given a positive signal to economists that the USA's economy is beginning to recover at a steady rate from effects of the banking crisis and property in 2007 and 2008. This had severely damaged the USA's economy causing a  massive economic contraction of around 9%. This has been the biggest contraction in growth since March 1958 where the economy of the USA shrank by 10.4%. The average growth rate in the USA sine 1847 has been 3.25%, reaching an all time high of 17.2% in  March 1950.

This is a graph showing how the GDP in the USA has changed over the past 65 years where you can see that overall America has sustained high rates of growth. However in recent years we can that the economy has begun to slow down in it's rate of growth  where the general positive trend has  begun to reduce in size.

Population

The population of the USA has averaged 243.4 million, reaching an all time high of 311.6 million in December 2011. The total population in the USA was last reported at 311 million in 2010. The United States has 4.51% of the world´s total population meaning one in every 22 people on the planet is a resident of the United States.Recent studies have shown that the United States government have fears that the population of America will shortly begin to decline if proper action is not taken. 

The US Government has the most sophisticated forms population control which is done through a series of different programs that most know about. These programs are the click it or ticket campaign which is done by the law enforcement which controls the death rate of the country by enforcing people to have their seat belts on. However it is carried out only at certain times of the year in order to ensure that some people die to keep the death rate at a sustainablr level otherwise if laws like this were enforced all of the time, there would be many more people alive., causing the population to be mch higher. This same policy also includes the drinking and driving campaigns as cannot be enforced at all times, because it would have a negative effect on society. It is a necessity that people die in traffic accidents. That is also the reason that there is not a tax on alcohol as there is on tobacco. When a person gets cancer it takes time for them to die, and that cost money. But if a person gets drunk and dies in a car accident, they die almost instantly.

The failure of the government to allow the import of pharmaceuticals from other nations is designed to prevent the use of affordable medications. Without affordable medications, those who cannot afford them will end up dying early. This doesn't just affect the elderly, there are many children and young adults that rely on medicines everyday that cannot afford them. Twenty caplets of medication, that cost only a couple of dollars to manufacture may cost as much as eighty to one hundred dollars. The same medication would cost only a tenth of that in Canada. However, the American Government does not want to import medication from other nations. If they did so, it would save countless lives and endangering the control that the government has over the population.

To control the birth rate in America, the government have made it easier for women to have abortions, which at one point were illegal but have now become a routine medical procedure in America, which has helped to control the population. 

Type of Economy

It's economy is market orientated, i.e. mixed economic structure, where private individuals and business make most of the decisions. The federal and state governments buy needed goods and services mostly in the private market which helps to boost their economy. However there are some aspects of the economy which are under government regulation, such as the banking system which control some the activities that certain businesses do, in order to prevent these companies from making reckless decisions that could damage the whole economy of America.

Imports and Exports

The United States imports were worth $227.9 Billion in June of 2012. Historically, from 1992 until 2012, the United States Imports averaged $131,058.8 Million reaching an all time high of $237,061.0 Million in March of 2012 and a record low of $52,277.0 Million in January of 1992.
United States is the world's second larger importer whose main imports are: non-auto consumer goods, fuels, production machinery and equipment, non-fuel industrial supplies, motor vehicles and parts, food, feed and beverages.
It's main import partners are: European Union, China, Canada, Mexico and Japan.

The United States exports were worth $185 Billion in June of 2012. Historically, from 1992 until 2012, the United States Exports averaged $99,439.1 Million reaching an all time high of $184,443.0 Million in March of 2012 and a record low of $50,044.0 Million in May of 1992.
United States is the world's third largest exporter whose main exports are: machinery and equipment, industrial supplies, non-auto consumer goods, motor vehicles and parts, aircraft and parts, food, feed and beverages. It's main exports partners are: Canada, European Union, Mexico, China and Japan.

50 Facts about the USA's economy

Information as of Dec 2011

• A staggering 48 percent of all Americans are either considered to be “low income” or are living in poverty. 
• Approximately 57 percent of all children in the United States are living in homes that are either considered to be “low income” or impoverished.
• If the number of Americans that “wanted jobs” was the same today as it was back in 2007, the “official” unemployment rate put out by the U.S. government would be up to 11 percent.
• The average amount of time that a worker stays unemployed in the United States is now over 40 weeks.
• One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers.
• There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million extra people to the population since then.
• Since December 2007, median household income in the United States has declined by a total of 6.8 percent once you account for inflation.
• According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006. Today, that number has shrunk to 14.5 million.
• A Gallup poll from earlier this year found that approximately one out of every five Americans that do have a job consider themselves to be underemployed.
• According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.
• Back in 1980, less than 30 percent of all jobs in the United States were low income jobs. Today, more than 40 percent of all jobs in the United States are low income jobs.
• Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job. In July, only 81.2 percent of men in that age group had a job.
• One recent survey found that one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.
• The Federal Reserve recently announced that the total net worth of U.S. households declined by 4.1 percent in the 3rd quarter of 2011 alone.
• According to a recent study conducted by the BlackRock Investment Institute, the ratio of household debt to personal income in the United States is now 154 percent.
• As the economy has slowed down, so has the number of marriages. According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married. Back in 1960, 72 percent of all U.S. adults were married.
• The U.S. Postal Service has lost more than 5 billion dollars over the past year.
• In Stockton, California home prices have declined 64 percent from where they were at when the housing market peaked.
• Nevada has had the highest foreclosure rate in the nation for 59 months in a row.
• If you can believe it, the median price of a home in Detroit is now just $6000.
• According to the U.S. Census Bureau, 18 percent of all homes in the state of Florida are sitting vacant. That figure is 63 percent larger than it was just ten years ago.
• New home construction in the United States is on pace to set a brand new all-time record low in 2011.
• 19% of all American men between the ages of 25 and 34 are now living with their parents.
• Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
• According to the Bureau of Economic Analysis, health care costs accounted for just 9.5 percent of all personal consumption back in 1980. Today they account for approximately 16.3 percent.
• One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
• If you can believe it, one out of every seven Americans has at least 10 credit cards.
• The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.
• It is being projected that the U.S. trade deficit for 2011 will be 558.2 billion dollars.
• The retirement crisis in the United States just continues to get worse. According to the Employee Benefit Research Institute, 46% of all American workers have less than $10,000 saved for retirement, and 29% of all American workers have less than $1,000 saved for retirement.
• Today, one out of every six elderly Americans lives below the federal poverty line.
• According to a study that was just released, CEO pay at America’s biggest companies rose by 36.5% in just one recent 12 month period.
• Today, the “too big to fail” banks are larger than ever.  The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.
• The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.
• According to an analysis of Census Bureau data done by the Pew Research Center, the median net worth for households led by someone 65 years of age or older is 47 times greater than the median net worth for households led by someone under the age of 35.
• If you can believe it, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.
• A higher percentage of Americans is living in extreme poverty (6.7 percent) than has ever been measured before.
• Child homelessness in the United States is now 33 percent higher than it was back in 2007.
• Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.
• Sadly, child poverty is absolutely exploding all over America.  According to the National Center for Children in Poverty, 36.4% of all children that live in Philadelphia are living in poverty, 40.1% of all children that live in Atlanta are living in poverty, 52.6% of all children that live in Cleveland are living in poverty and 53.6% of all children that live in Detroit are living in poverty.
• Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.
• In 1980, government transfer payments accounted for just 11.7% of all income. Today, government transfer payments account for more than 18% of all income.
• A staggering 48.5% of all Americans live in a household that receives some form of government benefits. Back in 1983, that number was below 30%.
• 44. Right now, spending by the federal government accounts for about 24% of GDP. Back in 2001, it accounted for just 18%.
• For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars. That was the third year in a row that our budget deficit has topped one trillion dollars.
• If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.
• Amazingly, the U.S. government has now accumulated a total debt of 15 trillion dollars. When Barack Obama first took office the national debt was just 10.6 trillion dollars.
• If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
• The U.S. national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.
• During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.

Government rules and legislation

Joint Venture


Worthington Industries, Inc. (NYSE:WOR) and Gestamp Renewables group have created a 50-50 joint venture for wind turbine towers in the US  The joint venture, called Gestamp Worthington Wind Steel, LLC, focuses on producing towers for wind turbines which are being constructed in the North American market. The joint venture partners has covered 30 acres in Cheyenne, Wyo. as the site of the initial production facility.
From this joint venture the new facility built has been estimated to have created 150 wind jobs when fully operational.

Another big joint venture for America has been  through IM Flash Technologies where Micron Technology and Intel have formed to manufacture NAND Flash memory for use in consumer electronics, removable storage, and handheld communication devices. The company was founded in January 2006.

Sony BMG Music Entertainment was a recorded music company, which was a 50–50 joint venture between the Sony Corporation of America and Bertelsmann AG that formed in March 2004. The venture’s successor, the again-active Sony Music Entertainment, is 100% owned by the Sony Corporation of America  since Sony Corp. agreed to buy Bertelsmann AG's 50 percent stake in the music company for $1.2 billion to get full control which occurred and went through in October 2008.

Economic Factors

The inflation rate in the United States was recorded at 1.4 percent in July of 2012. Historically, from 1914 until 2012, the United States Inflation Rate averaged 3.4 Percent reaching an all time high of 23.7 Percent in June of 1920 and a record low of -15.8 Percent in June of 1921.

The unemployment rate in the United States has increased to 8.3% in July of 2012. Historically, from 1948 until 2012, the United States Unemployment Rate averaged 5.8% reaching an all time high of 10.8% in November of 1982 and a record low of 2.5 Percent in May of 1953.

The benchmark interest rate in the United States was last reported at 0.25 percent. Historically, from 1971 until 2012, the United States Interest Rate averaged 6.2 % reaching an all time high of 20.0 % in March of 1980 and a record low of 0.3 % in January of 2011.
In the United States, the Board of Governors of the Federal Reserve (Board) and the Federal Open Market Committee (FOMC) are responsible for setting the base interest rate in the US. The Board decides on changes in discount rates after recommendations submitted by one or more of the regional Federal Reserve Banks. The FOMC decides on open market operations, including the desired levels of central bank money or the desired federal funds market rate.