…emphasis on private ownership … most decisions made by private individuals and business firms...
TRANSCRIPT
THE USA : A MARKET…
…emphasis on private ownership… most decisions made by private
individuals and business firms…limited government’s authority over
individuals, inc. economy… BUT Federal Gov. Regulates private
enterprise (eg prices, health, pollution, etc)
US ECONOMY BY 2007
Improved standard of living 10% of the adult population possessed
69.8% of household wealth 12.5% of Americans below the poverty
line Belief that the market can do no wrong
and the government no right
WALL STREET= NY STOCK EXCHANGE
WALL STREET= NY STOCK EXCHANGE
THE BULL = stock market prosperity
= many investors buy stocks
1980s and 90s Dominant financial
services sector
THE BEAR = stock market decline
= drop in stock prices makes investors sell
2007-8 Financial crisis
FINANCIAL CRISIS =>FALL OF THE IDEOLOGY OF UNREGULATED CAPITALISM
High unemployment rate Steady decline in the value of market Bursting of Dot-com bubble (2002) Bursting of housing bubble (2005-6) Subprime mortgage crisis (2007-7)
Fall of banks and investment houses => need for tighter regulations
Sharp slowing down of consumer spending
US AGRICULTURE
Fruit
Forests
fishing
MINING AND ENERGY
Fossil fuelsOIL +GAS = Alaska, California, Gulf of
MexicoCOAL = Appalachians
MineralsCopper, uranium, gold, silver = Rocky
mountainsIron = Minnesota, Michigan
MINING AND ENERGY
Coal used to produce 49% of US electricity
USA energy generated from…
coalnatural gasnuclear power19%hydroelectricity8%other sources
MANUFACTURING
North East + Mid-westGreat lakes region => The
Rust belt in 1970s because of decline in industrial heartland
1980s-90s: recoveryDetroit = Motown > “the Big
three” : Ford, General Motors, Chrysler
New York: book publishing industry
Ohio= rubber (tyre) and plastics
The West CoastSeattle: aircrafts (Boeing)California, Silicon valley (n.
San francisco) => computer industry
Texas + Louisiana: petro-chemicals, pharmaceuticals
Food processing: Illinois (Chicago) = meat Winsconsin = dairy
processing Central valley, California =
fruit and veg.
US SERVICES TRANSPORT TRADE ¾ OF EMPLOYEES
Transport: Road =>
highways;greyhound buses
Air => Boeing Waterways
Finance => Wall street NYSE + Chicago
Tourism => California, Hawaii, Florida, + national parks + cities
Entertainment industry
Design of software Health care
USA TRADE (IMBALANCE)
Imports (exceed exports by
about 70%) Petroleum Cars Consumer goods Raw materials Food
Exports (12%) Machinery Arircrafts Computers High-tech Chemicals Crops (corn+
soybeans)