The United States is a highly developed mixed-market economy It is the world's largest economy by nominal GDP, and the second-largest by purchasing power parity (PPP) behind China. It has the world's seventh-highest per capita GDP (nominal) and the eighth-highest per capita GDP (PPP) as of 2022. U.S. accounted for 15.5% of global economy in 2022 in PPP terms, and around 24.7% in nominal terms in 2022. Its firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment. The U.S. dollar is the currency of record most used in international transactions and is the world's foremost reserve currency, backed by the nation’s massive economy, stable government and legal framework, large U.S. treasuries market, extensive natural resources, highly advanced military, its role as the reference standard for the petrodollar system, and its linked Eurodollar. Several countries use it as their official currency and in others it is the de facto currency
The nation's economy is fueled by abundant natural resources, a well-developed transportation infrastructure, and high productivity. It has the second-highest total-estimated value of natural resources, valued at US$ 44.98 trillion in 2019, although sources differ on their estimates. Americans have the highest average household and employee income among OECD member states. In 2013, they had the sixth-highest median household income, down from fourth-highest in 2010. The largest U.S. trading partners are China, the European Union, Canada, Mexico, India, Japan, South Korea, the United Kingdom, and Taiwan.]The U.S. is the world's largest importer and second-largest exporter. It has free trade agreements with several countries, including the USMCA, Australia, South Korea, Switzerland, Israel, and several others that are in effect or under negotiation.
By 1890, the United States had overtaken the British Empire as the world's most productive economy. It is the world's largest producer of petroleum and natural gas.In 2016, it was the world's largest trading country as well as its third-largest manufacturer, representing a fifth of the global manufacturing output. The U.S. not only has the largest internal market for goods, but also dominates the services trade. U.S. total trade amounted to $4.2 trillion in 2018. Of the world's 500 largest companies, 121 are headquartered in the U.S. The U.S. has the world's highest number of billionaires, with a total wealth of $3.0 trillionUS commercial banks had $20 trillion in assets as of August 2020.[61] U.S. global assets under management had more than $30 trillion in assets.
The New York Stock Exchange and Nasdaq are the world's largest stock exchanges by market capitalization and trade volumeForeign investments made in the U.S. total almost $4.0 trillion, while American investments in foreign countries total over $5.6 trillion. The U.S. economy is ranked first in international ranking on venture capital and global research and development funding Consumer spending comprised 68% of the U.S. economy in 2018,[70] while its labor share of income was 43% in 2017. The U.S. has the world's largest consumer market.The nation's labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world.] The U.S. is one of the top-performing economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report, and others
The U.S. economy experienced a serious economic downturn during the Great Recession, defined as lasting from December 2007 to June 2009. However, real GDP regained its pre-crisis (late 2007) peak by 2011 household net worth by Q2 2012 non-farm payroll jobs by May 2014,] and the unemployment rate by September 2015. Each of these variables continued into post-recession record territory following those dates, with the U.S. recovery becoming the second-longest on record by April 2018.[79] The U.S. ranked 41st in income inequality among 156 countries in 2017, the highest in the Western world
History
Main article: Economic history of the United States
Colonial era and 18th century
Further information: Mercantilism and American Revolution
The economic history of the United States began with British settlements along the Eastern seaboard in the 17th and 18th centuries. America after 1700 gained population rapidly and imports, as well as exports, grew along with it. Africa, Asia, and most frequently Europe, contributed to the trade of the colonies.[83] These 13 colonies gained independence from the British Empire in the late 18th century[84] and quickly grew from colonial economies towards an economy focused on agriculture.[85]
19th century
Further information: Industrial Revolution in the United States
See also: List of tariffs in the United States, Protectionism in the United States, Tariff in United States history, and American System (economic plan)
Washburn and Moen Manufacturing Company in Worcester, Massachusetts, 1876
In 180 years, the U.S. grew to become a huge, integrated, and industrialized economy that made up around one-fifth of the world economy. As a result, the U.S. GDP per capita converged on and eventually surpassed that of the British Empire, as well as other countries that it previously trailed economically. The economy maintained high wages, attracting immigrants by the millions from all over the world.[86] In the 1820s and 1830s, mass production replaced artisans with factories. New government regulations strengthened patents.
In the early 1800s, the United States was largely agricultural, with more than 80 percent of the population engaged in farming. Most of the manufacturing centered on the first stages of the transformation of raw materials, with lumber and sawmills, textiles, and boots and shoes leading the way. The rich resource endowments contributed to the rapid economic expansion of the nineteenth century. Ample land availability allowed the number of farmers to keep growing, but activity in manufacturing, services, transportation, and other sectors grew at a much faster pace. Thus, by 1860, the share of the rural population in the U.S. had fallen from over 80 percent to roughly 50 percent. In the 19th century, recessions frequently coincided with financial crises. The 1837 Panic was followed by a five-year depression marked by bank failures and then-record-high unemployment levels. Because of the great changes in the economy over the centuries, it is difficult to compare the severity of modern recessions to early recessions. Recessions after World War II appear to have been less severe than earlier recessions, but the reasons for this are unclear.
[8:34 AM, 2/18/2023] ITEANS: The United States is a highly developed mixed-market economy It is the world's largest economy by nominal GDP, and the second-largest by purchasing power parity (PPP) behind China. It has the world's seventh-highest per capita GDP (nominal) and the eighth-highest per capita GDP (PPP) as of 2022. U.S. accounted for 15.5% of global economy in 2022 in PPP terms, and around 24.7% in nominal terms in 2022. Its firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment. The U.S. dollar is the currency of record most used in international transactions and is the world's foremost reserve currency, backed by the nation’s massive economy, stable government and legal framework, large U.S. treasuries market, extensive natural resources, highly advanced military, its role as the reference standard for the petrodollar system, and its linked Eurodollar. Several countries use it as their official currency and in others it is the de facto currency. The largest U.S. trading partners are China, the European Union, Canada, Mexico, India, Japan, South Korea, the United Kingdom, and Taiwan The U.S. is the world's largest importer and second-largest exporter It has free trade agreements with several countries, including the USMCA, Australia, South Korea, Switzerland, Israel, and several others that are in effect or under negotiation.
By 1890, the United States had overtaken the British Empire as the world's most productive economy. It is the world's largest producer of petroleum and natural gas. In 2016, it was the world's largest trading country as well as its third-largest manufacturer, representing a fifth of the global manufacturing output. The U.S. not only has the largest internal market for goods, but also dominates the services trade. U.S. total trade amounted to $4.2 trillion in 2018.[57] Of the world's 500 largest companies, 121 are headquartered in the U.S The U.S. has the world's highest number of billionaires, with a total wealth of $3.0 trillion US commercial banks had $20 trillion in assets as of August 2020.[61] U.S. global assets under management had more than $30 trillion in assets
The New York Stock Exchange and Nasdaq are the world's largest stock exchanges by market capitalization and trade volume. Foreign investments made in the U.S. total almost $4.0 trillion, while American investments in foreign countries total over $5.6 trillion. The U.S. economy is ranked first in international ranking on venture capital and global research and development funding. Consumer spending comprised 68% of the U.S. economy in 2018, while its labor share of income was 43% in 2017. The U.S. has the world's largest consumer market. The nation's labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world. The U.S. is one of the top-performing economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report, and others.
The U.S. economy experienced a serious economic downturn during the Great Recession, defined as lasting from December 2007 to June 2009. However, real GDP regained its pre-crisis (late 2007) peak by 2011 household net worth by Q2 2012 non-farm payroll jobs by May 2014, and the unemployment rate by September 2015 Each of these variables continued into post-recession record territory following those dates, with the U.S. recovery becoming the second-longest on record by April 2018. The U.S. ranked 41st in income inequality among 156 countries in 2017, the highest in the Western world.
History
Main article: Economic history of the United States
Colonial era and 18th century
Further information: Mercantilism and American Revolution
The economic history of the United States began with British settlements along the Eastern seaboard in the 17th and 18th centuries. America after 1700 gained population rapidly and imports, as well as exports, grew along with it. Africa, Asia, and most frequently Europe, contributed to the trade of the colonies. These 13 colonies gained independence from the British Empire in the late 18th century and quickly grew from colonial economies towards an economy focused on agriculture
19th century
Further information: Industrial Revolution in the United States
See also: List of tariffs in the United States, Protectionism in the United States, Tariff in United States history, and American System (economic plan)
Washburn and Moen Manufacturing Company in Worcester, Massachusetts, 1876
In 180 years, the U.S. grew to become a huge, integrated, and industrialized economy that made up around one-fifth of the world economy. As a result, the U.S. GDP per capita converged on and eventually surpassed that of the British Empire, as well as other countries that it previously trailed economically. The economy maintained high wages, attracting immigrants by the millions from all over the world In the 1820s and 1830s, mass production replaced artisans with factories. New government regulations strengthened patents.
In the early 1800s, the United States was largely agricultural, with more than 80 percent of the population engaged in farming. Most of the manufacturing centered on the first stages of the transformation of raw materials, with lumber and sawmills, textiles, and boots and shoes leading the way. The rich resource endowments contributed to the rapid economic expansion of the nineteenth century. Ample land availability allowed the number of farmers to keep growing, but activity in manufacturing, services, transportation, and other sectors grew at a much faster pace. Thus, by 1860, the share of the rural population in the U.S. had fallen from over 80 percent to roughly 50 percent. In the 19th century, recessions frequently coincided with financial crises. The 1837 Panic was followed by a five-year depression marked by bank failures and then-record-high unemployment levels. Because of the great changes in the economy over the centuries, it is difficult to compare the severity of modern recessions to early recessions. Recessions after World War II appear to have been less severe than earlier recessions, but the reasons for this are unclear.
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