1、The Economy Of The United States,.History and Growth .Commercial and Nonprofit Firms .Households .Government and the Economy .International Trade .Problems and Challenges for the U.S. Economy,The economy of the US is best defined as a mixed economy.,The growth was 3.4% per year between 1959 and 2006
2、.,American businesses fall primarily into three methods of organzation,sole proprietorshipthe quickest and easiest way partnershipowned by two or more “partners“ corporationmose of the largest firms choose this organzation,Corporations issue and sell shares of stock to investorsstock markets. Bonds
3、are another important type of security traded in financial markets. Stock and bond markets are important for corporations,governments and investors.,The Stock And Bond Market,Nonprofit Firms,Some American firms are specifically designed to not earn profits“nonprofit“ firms.,Banking is an important i
4、ndustry in the American economy.,Banking,On average,American earn 45.790 for every person in the US the five and a half of the world average. One half of families earn more and one half of families earn less. Americas high levels of average income,37 million of Americas 299 million residents live in
5、 poverty. The poverty and wealth of the US is not distributed evenly by race,geography or age. poor people are most concentrated in the suothern states.,Americans currently save about 1% of their income eac year. “saving account“the traditional method. Trillions of dollars of savings are invested in
6、 the stock market at any given time. Defined benefit persions,defined contribution persions and home ownershipused for many families,The Federal Government,The federal gvernment plays many roles in the American economy.,major purchaser of goods and services,transfers money and other resources to nee
7、dy American,produce currency,controls the supply of money,regulates the work environment,Federal Taxation,Deficits Debt,In order to finance its many activities,the federal government taxes both firms and households. Since 1969,the federal government has had a bdget deficit. The national debt,or the
8、accumulation of all bedt owed by the federal government,was over $10 trillion or a little less than two-thirds of the GDP.,Welfare and Aid to the Poor,Although the US is a very rich country,there are many poor people who have low income.The government take some programs to benefit the unemployedcall
9、ed welfare,Regulations define how legislation is to be implemented. Regulations protect the health and safety of the consumer. The regulation of product design is meant to reduce the amount of pollution that the use of the product imposes on other people.,Some welfare programs involve cash payments
10、to he poor. Poor American can entitled to receive “in-kind“ benefit from the federal government. Another important in-kind program for the poor is about $100 per recipient per month.,Government Regulation,The government also regulates the methods of production of almost all goods. In addition to the
11、 design and production of goods,the federal government regulates the disposal of solid waste created by both consumera and peoducers.,The Money Supply,The federal government began to control the supply of money after the FRS created. The money supply in America can be measured in several ways:M1、M2.
12、 The Federal Reserve can also increase the supply of money by buying bonds held by the public.,The State And Local Government,Like the federal government,many state and local governments tax the incomes of workers and corporations. The sales tax is anther important form of tax revenue for state and
13、local government. State and local governments spend the majority of their money on three types of spending:education,welfare for the poor,and road construction.,Quantity Of Trade,Large size of the American economy puts the US at or near the top of world trade for the absolute dollar value of exports
14、 and imports. Geography places an important role in international trade.,Trade Policies,The US has has become an advocate of freer trade and has lowered tariffs to a current average leverl of less than 3%. A second important component to US trade policy is partcipation in multi-country trade treatie
15、s.,Current generations are improving their standards of livig at a much slower pace than earlier generations of Americans. Per capita incomes have never been higher than they currently are,despite the slowdown in growth. Anther area of concern is the persistent hudget deficit that the federal government has been running. A future challenge that is related to federal budget deficits involves the generation. In addition to the current suffering of the poor,there is a tendency for povrety to pass through generations. Many fear that inflation will cause problems in the future.,Thank You,Bai Bai,
