economy of u.s.a

U.S.A. Facts

• Washington is the capital of the USA .

• New York is the biggest city.

• The official language in USA is American

English.

• The president of the USA is Barack Obama.

• The surface of USA is 9.8 million km2

• 307.000.000 people live in the USA.

• It’s the 3rd most populated and 3rd largest

country by size.

U.S.A. money-dollar

Back to the RENAISSANCE

Europe came out of the Middle Ages with

the “re-birth” of learning…

The desire for Asian goods led to the Age

of Discovery

Exploration led to the “discovery” of the

New World – the Americas

The Declaration of

Independence• Approved on July 4,

1776

• 1776 – Agricultural

economy

• 1787-1850s –

Constitution economy

and Industrial revolution

• 1865-1929 – Post-war

consumerism

The 1920s was known as a

prosperous time, but not for everyone

Installment buying, using credit and

paying back in small amounts, was

introduced which allowed people to buy cars, radios and other new products of the

1920s.

Farmers, however, were in a depression throughout the whole

decade.

October 29, 1929

Sell!! Sell!!

Sell!! Sell!!

Sell!! Sell!!

Sell!! Sell!!

The 1929 Stock Market Crash!

• Analysts warn of an end to the ‘bull market’ (in which prices are constantly rising)

• Investors begin to sell

stock prices fall

companies reduced production

• Fortunes lost in a day– Investors lose $4B on

the 28th and $16B on the 29th

Banking Industry Collapse

• Families lose savings in crash; banks have little cash left on reserve

• Banks lose money loaned to ‘buy on the margin’ (even people who did not invest lost out!)

• People default on mortgages due to unemployment

Overproduction of Industrial and Agricultural Goods

Overproduction of Industrial Goods• Technological advances change how

Americans live and work

• In the Roaring 1920s:

– Consumer demand is very high

– Machine produce quality products

quickly

– Unrestricted capitalism

• By 1929, supply greatly exceeds

demand!

Overproduction of Agricultural Goods

• American farmers had prospered during WWI

• Use profits to buy machines to produce more

• After WWI, demand drops surplus!– Huge supply + Low demand = Low prices

Farming Industry Decline

• Farmers borrowed from bank to buy machinery

• Foreclosed on mortgages and other debts

• Banks closed due to defaults and stock market

• Between 1929 and 1933 farmers’ income 50%

• One million families lose their farms by 1934

Unequal Distribution of Wealth

• Gap between the rich and poor widens in the 20s

• By 1929 1% of Americans have 59% of the wealth

• In the 1920s average American’s wages 9%

• In the 1920s income of rich 75%!

• Wealth DOES NOT ‘trickle down’

• Consumers in debt ; Cannot afford products

Demand drops

Companies fail!

Unemployment!

POWER OF GOV’T

• Executive: Power

to carry out laws

– Council of

Economic

Advisers

– Department of the

Treasury

• Legislative:

Power to make

laws

• Judicial: Power to

interpret laws

U.S.A. Economy

REFERENCES

http://useconomy.about.com/od/people/p/President-Barack-Obama-Economic-Policies.htm

http://www.ustravel.org/government-affairs/travel-industry-economic-impact

http://www.valuewalk.com/2014/08/argentina-economy/

http://www.usa.gov/Agencies/federal.shtml

http://www.tradingeconomics.com/united-states/wages

REFERENCES

http://www.tradingeconomics.com/united-states/inflation-cpi

http://www.tradingeconomics.com/united-states/gdp

http://www.tradingeconomics.com/united-states/gdp-per-capita

http://www.tradingeconomics.com/united-states/unemployment-rate

http://www.tradingeconomics.com/united-states/population

http://www.tradingeconomics.com/united-states/personal-income-tax-rate

REFERENCES

http://mashable.com/2014/05/21/industries-available-jobs/

http://www.marketingcharts.com/online/top-10-fastest-growing-us-industries-the-internet-makes-its-mark-28968/

http://www.businessinsider.com/americas-fastest-growing-industries-2013-6?op=1

http://www.learner.org/interactives/renaissance/exploration_sub.html