economy of u.s.a
DESCRIPTION
Economics of usaTRANSCRIPT
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