This presentation is focused to analysis how the largest economy in the world by 2013 has been achieved their giant development through many admirable successful contribution as a democratic nation in the world.

1. Economic History of USA
238 years history
ECO422(E)
Lecture 08
By W.A Senathissa

2. Salient features of USA
• Independence: 4 July 1776 (declared); 3 September 1783
(recognized by Great Britain)
• Area: total: 9,826,675 sq km
• land: 9,161,966 sq km
• water: 664,709 sq km
• note: includes only the 50 states and District of Columbia
• Population 313,847,465 (July 2012 est.)
• Life expectancy at birth: total population: 78.49 years
– male: 76.05 years
– female: 81.05 years (2012 est.)
–Government type: Constitution-based federal republic; strong
democratic tradition

3. Economic history of the USA
• Ithalian Citizen Amerigo Vesputchi found
America Continent in 1507
• In 1776, 13 small, independent farming
economies joined together to form the United
States of America.
• In 237 years the United States grew to a huge,
integrated, industrialized economy
• Nearly a quarter of the world economy.

4. Secret behind the successfulness early USA
• A large unified market
• A supportive political-legal system
• Vast areas of highly productive farmlands
• vast natural resources (timber, coal, iron & oil)
• An entrepreneurial spirit
• commitment to investing in material & H: capital
• Maintained high wages, attracting immigrants by
the millions from all over the world.
• Technological and industrial factors played a
major role

5. American Revolution
• Americans in the 13 Colonies demanded
their rights as Englishmen.
• they saw it, to select their own representatives to
govern and tax them– which Britain refused.
• struggle through refusing British manufactured
items.
• British responded with a rejection of American
rights
• War against the British and to independence for
the new United States of America

6. Gains from The American Revolution (1775–1783)
• brought a dedication to unalienable rights to
"life, liberty, and the pursuit of happiness,"
• emphasize individual liberty and economic
entrepreneurship
• simultaneously a commitment to the political
values of republicanism, which emphasize civil
virtue(benefit) and duty, and promotion of the
general welfare.

7. Early period of America
• Britain's war against the Americans, French and Spanish cost
about £100 million.
• The British imposed a tight blockade on every American port to
cut off all imports & exports.
• The American states had no end of difficulty financing the war
• In 1775 there was at most 12 mn dollars in gold in the colonies,
not nearly enough to cover current transactions, let alone on a
major war.
• Only solution : support from militiamen, and donations from
patriotic citizens

8. • Due to the depreciated currency, delay actual
payments for soldiers and suppliers on the
promises it to be made good a after the war
• in 1783 the soldiers and officers were given land
grants to cover the wages they had earned
• But had not been paid during the war.
• 1781, Robert Morris(Superintendent of Finance of the United States)
established a private Bank of North America
through France loan to finance the war
Early period of America

9. Main methods to cover the cost of the war
• 01st Issues of paper money(242 mn $)
• This paper money were cashed in through the
state taxes
• By 1780, the paper money was "not worth a
Continental“ just only paid 01 cent for holders
• 02nd Issues of paper money
• paid 100 cents on the dollar for holders
• the paper money was a hidden tax on the
people

10. War stressed
• The skyrocketing inflation just for a few
people, Being 90% as farmers they were not
been much suffered from the huge inflation
• The greatest burden was borne by the
soldiers, whose wages in value every month.
• 1776, the French secretly supplied the
Americans with money, gunpowder and
weaponries in order to weaken its arch enemy

12. New nation
• Direct government involvement in the
economy
• Strong central government able to promote
science, invention, industry and commerce,
was seen as an essential means of promoting
the general welfare
• made the economy of the United States
strong enough for them to determine their
own destiny

13. • Americans were motivated by specific beliefs that
only a republican form of government could ensure
political and economic freedom
• Goal of any good government was to promote the
general welfare
• Usefulness of the society depended on govt
responsibility,
– for individuals to “choose for themselves” how they will
apply their labor and their intelligence in production.
New nation Cont’d

14. • The U.S. Constitution in 1787, established that
the entire nation was a unified, or common
market, with no internal tariffs or taxes on
interstate commerce.
• Alexander Hamilton(The 01st secretary of the
treasury during the presidential administration of
George Washington) believed that the United
States should pursue economic growth through
diversified shipping, manufacturing, and banking
New nation Cont’d

15. • Hamilton wanted and achieved Congressional
authority to create the First Bank of the
United States in 1791
• Alexander Hamilton, who proposed the
creation of a government-sponsored bank and
increased tariffs to encourage industrial
development
New nation Cont’d

16. The differences between the American
and British systems of political
economy
• One looks to increasing the necessity of
commerce; the other to increasing the power
to maintain it
• One looks to underworking the Hindoo, and
sinking the rest of the world to his level; the
other to raising the standard of man
throughout the world to our level.

17. • One looks to pauperism(poverty), ignorance,
depopulation, and barbarism; the other to increasing
wealth, comfort, intelligence, combination of action,
and civilization.
• One looks towards universal war; the other towards
universal peace.
• One is the English system; the other we may be proud
to call the American system, for it is the only one ever
devised the tendency of which was that of elevating
while equalizing the condition of man throughout the
world
The American and British systems of
political economy Cont’d

18. The roles of Army
• establishment of the Patent Office in 1802
• in 1807 and other measures to improve river
and harbor navigation
• the various Army exploring to the west
• Corps of Discovery in 1804 always under the
direction of an officer from the Army Corps of
Topographical Engineers

19. The assignment of Army Engineer
officers
• surveying and construction of the early
railroads and canals
• Second Bank of the United States established
in 1816,
• The War of 1812, by cutting off almost all
foreign trade, created a home market for
goods made in the U.S toward free trade into
a protectionism

20. Mass production
• The requirement for substitutable parts forced
forward the development of modern metal-
working machine tools, including milling
machines, grinders, shapers and planers.
• The development of these modern machine
tools made possible the development of
modern industry capable of mass production

21. From the 1830s to 1860
• policies of Economic nationalism & higher
tariffs
– included increased state control, regulation and
macroeconomic development of infrastructure

22. Expansion and growth
• Cotton, at first a small-scale crop
• The raw cotton was shipped to textile mills in
Britain, France and New England
• built roads and waterways/ Canal, opening up
markets for western farm products

23. Scene of Lockport on the Erie Canal (W. H. Bartlett 1839)

24. Railroads made a decisive impact on
the U.S. economy 1850–1873 era
• the railroad became the first large-scale
business enterprise and the model for most
large corporations
• made cities such as Atlanta, Billings, Chicago,
and Dallas
• They created career tracks that took 18 year
old boys and turned them into brakemen,
conductors and engineers

25. Development of transportation sector
• As transportation improved, new markets
continuously opened
• The steamboat made river traffic faster and
cheaper, but development of railroads had an
even greater effect, opening up vast stretches
of new territory for development.
• enabled the nation to develop a large-scale
railroad system, establishing the base for the
country's industrialization

26. Rail rods and industry
Country 1850 1870 1890
New England 2,507 4,494 6,831km
TOTAL USA 9,021 52,914 129,774km
early in the history of the American oil industry

27. By 1860, on the eve of Civil War
• one third of the nation's income came from
manufacturing.
• cotton cloth production was the leading
industry, with the manufacture of shoes,
woolen clothing, and machinery also
expanding
• Between 1845 and 1855, some 300,000
European immigrant arrived annually

28. Government income
• The largest tax sum by far came from new
excise taxes
• a sort of value added tax—that was imposed
on every sort of manufactured item
• Second came much higher tariffs
• Third came the nation's first income tax

29. Second major source of govt income
• Apart from taxes, the second major source
was government bonds
• For the first time bonds in small
denominations were sold directly to the
people
• national bank involved buying and holding
federal bonds

30. Agriculture
• Agriculture was the largest single industry and it
prospered during the war
• encouraged the rapid adoption of horse-drawn
machinery and other implements
• Many wives took their place, and often consulted by
mail on what to do
• The 1862 opened up the public domain lands for free.
Land grants to the railroads meant they could sell areas
for family farms (80 to 200 acres) at low prices with
extended credit
• the government sponsored fresh information, scientific
methods and the latest techniques

31. A wheat harvest in Idaho

32. The Gilded Age: 1865–1900
• Industrial economy
• By 1890, the USA leaped ahead of Britain for first place
in manufacturing output
• Second Industrial Revolution." Railroads greatly
expanded the mileage and built stronger tracks and
bridges that handled heavier cars and tank engine,
carrying far more goods and people at lower rates.
• Cooling railroad cars came into use.
• The telephone, phonograph, typewriter and electric
light were invented. By the dawn of the 20th century,
cars had begun to replace horse-drawn carriages.

33. Resource abundancy
• Coal was found in abundance in the
Appalachian Mountains from Pennsylvania
• Oil was discovered in western Pennsylvania
• Large iron ore mines opened in upper
Midwest
• Large copper and silver mines opened,
followed by lead mines and cement factories

34. Power of human capital
• In 1913 Henry Ford introduced the assembly
line, a step in the process that became known
as mass-production.
• Frederick W. Taylor pioneered the field of
scientific management
• After 1910 mass production was sped by the
electrification of factories, which replaced
water power

35. Depicting Standard Oil as a ruthless
octopus

36. Pre condition for a take off
• The Gilded Age saw the greatest period of
economic growth in American history
• From 1869 to 1879, grew at a rate of 6.8% for
real GDP and 4.5% for real GDP per capita
• Capital investment also increased
tremendously during the 1880s nearly 500%, ,
increasing.
• Capital formation doubled during the decade

37. The power of labour union
• the first significant labor union, the Knights of
Labor in 1869.
• The Knights collapsed in the 1880s and were
displaced by strong international unions that
banded
• grew to a peak during World War I

38. A series of recessions happened(1873-1897)
• Fear of 1873 had New York Stock Exchange closed
for ten days,
• of the country's 364 railroads, 89 went bankrupt,
• a total of 18,000 businesses failed between 1873
and 1875,
• Unemployment reached 14% by 1876, during a
time which became known as the Long
Depression.
• The end of the Gilded Age coincided with the
Panic of 1893,

39. Progressive Era: 1890–1920
1900 panoramic image of the Chicago slaughter houses
 radical political movements of business elite and
farmers/laborers in the Midwest and West
 these people favored government regulation of
business practices to, in their minds, ensure
competition and free enterprise.
 preventing large firms from controlling a single
industry in 1890

40. Ford Assembly line
• In 1913, Henry Ford, adopted the moving
assembly line, with each worker doing one
simple task in the production of automobiles
• Ford offered a very generous wage—$5 a
day—to his workers, arguing that a mass
production enterprise could not survive if
average workers could not buy the goods

41. Electrification in the U.S
• 1900 and by 1930 about 80% of power used in
industry was electric.
• Electric utilities with steam turbines greatly
lowered the cost of power with businesses and
houses in cities.
• Electric street railways developed into a major
mode of transportation
• electric inter-urban service connected many cities
in the northeast and mid-west.
• Tractors began being mass-produced.

42. Waves/Roaring twenties: 1920–1929
• The rapid growth of the automobile industry stimulated
industries such as oil, glass, and road-building.
• Tourism soared and consumers with cars had a much wider
radius for their shopping.
• Small cities prospered, and large cities had their best
decade ever, with a boom in construction of offices,
factories and homes.
• The new electric power industry transformed both business
and everyday life.
• Telephones and electricity spread to the countryside,
• but farmers never recovered from the wartime bubble in
land prices.
• Millions migrated to nearby cities.

43. Great Depression: 1929–1941
• in October 1929, the Stock market crashed
and banks began to fail
• The Federal Reserve worsened conditions in
the U.S. when by allowing the money supply
to contract by one-third
• Congress in 1932 worried about the rapidly
growing deficit and national debt, and raised
income tax rates

44. Great Depression By 1932,
• The unemployment rate was 25%.
• Conditions were worse in heavy industry,
lumbering(hardly maintain/wood), export
agriculture (cotton, wheat, tobacco), and
mining.
• Conditions were not quite as bad in white
collar sectors and in light manufacturing

45. Spending
• Government spending increased from 8.0% of
GNP under Hoover in 1932 to 10.2% of GNP in
1936.
• Roosevelt met Keynes but did not pay
attention to his recommendations. After a
meeting with Keynes, who kept drawing
diagrams, Roosevelt remarked that "He must
be a mathematician rather than a political
economist

46. Banking crisis
• losses in investment banking
• Between 1929 and 1933 40% of all banks (9.490
out of 23.697 banks) went bankrupt
• Hoover had already considered a bank holiday to
prevent further bank runs
• Roosevelt acted as soon as he took office; he
closed all the banks in the country and kept them
all closed until he could pass new legislation
• provided for a system of reopening sound banks
under Treasury supervision, with federal loans
available if needed

47. End of the depressions
• By the end of 1933, 4,004 small local banks
were permanently closed and merged into
larger banks
• the U.S. had gotten back on track by 1934 and
made a full recovery by 1936
Table 2:
Depression
Data[86]
1929 1931 1933 1937 1938 1940
Real Gross
National Product
(GNP) 1
101.4 84.3 68.3 103.9 103.7 113.0
Consumer Price
Index 2
122.5 108.7 92.4 102.7 99.4 100.2

48. Recovery waves
• but as Roosevelt said, one third of the nation
was ill fed, ill-housed and ill-clothed.
• GNP was 34% higher in 1936 than 1932, and
58% higher in 1940 on the eve of war.
• The economy grew 58% from 1932 to 1940 in
8 years of peacetime, and then grew another
56% from 1940 to 1945 in 5 years of wartime.
• The unemployment rate fell from 25.2% in
1932 to 13.9% in 1940 when the draft started

49. Severely of Great depression
Table 2: Depression Data 1929 1931 1933 1937 1938 1940
Real Gross National
Product (GNP)
101.4 84.3 68.3 103.9 103.7 113.0
Consumer Price Index 122.5 108.7 92.4 102.7 99.4 100.2
Index of Industrial
Production
109 75 69 112 89 126
Money Supply M2 ($
billions)
46.6 42.7 32.2 45.7 49.3 55.2
Exports ($ billions) 5.24 2.42 1.67 3.35 3.18 4.02
Unemployment (% of
civilian work force)
3.1 16.1 25.2 13.8 16.5 13.9

50. Wartime controls: 1941–1945
• Converted consumer-products plants filled many
military orders.
• Automakers built tanks and aircraft
• Six million women took jobs in manufacturing
and production; most were newly created
temporary jobs in munitions.
• Some were replacing men away in the military.
• After the war many women returned to
household work as men returned from military
service.

51. Postwar prosperity: 1945–1973
• the early 1970s was a golden era of American
capitalism.
• $200 billion in war bonds matured, and theG.I.
Bill financed a well-educated work force
• The middle class swelled, as did GDP and
productivity
• labor union membership peaked historically in
the U.S. during the 1950s
• Congress advised to promote high employment,
high profits and low inflation

52. Keynesian policies
• The Eisenhower administration (1953–1961) establish
Keynesianism as a dual-party economic policy for the
nation.
• accelerating public works programs, easing credit, and
reducing taxes
• Republican President Richard Nixon in 1969
proclaimed as “I am now a Keynesian in economics,"
• Although this period brought economic expanding to
the country as whole, it was not recession proof. The
recessions of 1945, 1949, 1953, 1958, and 1960 saw a
drastic decline in GDP.

53. Baby Boom (1942–1957)
• The "Baby Boom" saw a dramatic increase in
fertility in the period 1942–1957
• caused by delayed marriages and childbearing
during depression years,
• a surge in prosperity, a demand for suburban
single-family homes (as opposed to inner city
apartments)
• new optimism about the future.
• The boom crested about 1957, then slowly
declined

54. Liberal programs
• Congress cut tax rates in 1964.
• President Lyndon B. Johnson (1963–69) dreamed
of creating a "Great Society", and began many
new social programs to that end, such as
Medicaid and Medicare.
• The government financed some of private
industry's research and development throughout
these decades,
• most notably ARPANET (which would become the
Internet)

55. Inflation woes: 1970s
• the collapse of the Bretton Woods system in 1971
• the growing influx of imported manufacturing goods,
such as automobiles and electronics
• the 1973 oil crisis,
• the 1973–1974 stock market crash,
• and the ensuing displacement of Keynesian economics
by monetarist economics,
• especially by the free-market Chicago School of
Economics, led by theorist Milton Friedman. At the
same time, the consensus among experts moved
against New-Deal-style regulation, in favor of
deregulation.

56. Bretton Woods Agreement collapsed
• The United States grew increasingly
dependent on oil importation from OPEC
• Stagflation gripped the nation, and the
government under President Nixon tested
with wage and price controls
• The Bretton Woods Agreement collapsed in
1971–1972. United States entirely off the gold
standard.

57. New regulations & regulatory agencies
• Productivity growth was small, when not
negative. Interest rates remained high, with the
prime reaching 20% in January 1981
• the increased rise of the environmental and
consumer movements, and the government
established new regulations and regulatory
agencies
– Occupational Safety and Health Administration,
– the Consumer Product Safety Commission,
– the Nuclear Regulatory Commission

58. Deregulation and Reaganomics: 1976–1992
• Deregulation spurred by
– slow productivity growth
– increasing operation and capital costs in several key sectors.
• Transportation deregulation accelerated in
1980:deregulation of railroads and trucking
• Deregulation of interstate buses followed in 1982
• banks were partially deregulated
• 1973–75 recession president Jimmy Carter instituted large
fiscal stimulus package in 1977
• Inflation rose by double digits following the 1979 energy
crisis

59. Strategies to reduce inflation
• In order to combat inflation, Carter raised interest rates
and caused a sharp recession in the first six months of 1980
• Carter introduced his own policies for reducing inflation,
and the Federal Reserve brought down interest rates to
cooperate with the initiatives
• During the 1980 recession, manufacturing shed 1.1 million
jobs, while service industries remained intact. Employment
in automotive manufacturing in particular suffered,
experiencing a 33% reduction by the end of the recession.
• Collectively these factors contributed to the election of
Ronald Reagan in 1980

60. Federal intervention & Unemployment
• The Federal Reserve once again began to raise
interest rates in 1981,
• which plunged the economy back into
recession. Unemployment rose to a peak of
10.8% in December 1982

61. Reaganomics
• In 1981, Ronald Reagan introduced
Reaganomics.
• fiscally-expansive economic policies, cutting
marginal federal income tax rates by 25%
• Inflation dropped dramatically from 13.5%
annually in 1980 to just 3% annually in 1983
due to a short recession
• the Federal's tighter control of the money
supply and interest rates

62. Economic growth vs inequality
• Real GDP began to grow
• peak unemployment of 10.8% by late 1982,
dropped well under 6% unemployment at the
end of Reagan's presidency by 1989
• The gap between those in the upper
socioeconomic levels and those in the lower
socioeconomic levels increased during
Reagan's presidency

63. Failure government policies
• the federal debt spawned by his policies
tripled (from $930 billion in 1981 to $2.6
trillion in 1988), reaching record levels
• In addition to the fiscal deficits, the U.S.
started to have large trade deficits
• Vice President George H. W. Bush was elected
to succeed Reagan in 1988.

64. Bush Presidency
• The early Bush Presidency's economic policies
seen as a continuation of Reagan's policies,
• but in the early 1990s, Bush went back on a
promise and increased taxes
• In 1992, Bush lost to Democrat Bill Clinton

65. The advent of deindustrialization(1960-1970)
• income inequality increase dramatically.
• But at the same time, most mainstream
economists, and most policy makers, pointed
that consumers could buy so many goods,
even with the inflation of the 1970s,
• due to the widespread prosperity of shifting
away from manufacturing and into services.

66. Increasing inequality with oppenens
• increasing free trade, globalization and high corporate
taxes, and the desire to escape more severe
environmental and workplace safety regulations in the
U.S., have caused U.S. companies to begin to shift their
manufacturing and heavy industrial operations to
second- and third-world countries with lower labor
costs.
• One result has been that rising income
• In 2005, the American Gini coefficient had reached
0.469, similar to that of Malaysia and the Philippines,
both at .461, and well-ahead of China (.440).

67. The Rise of Globalization and a World
Superpower: 1990s-late 2000s
• During the 1990s, the national debt increased
by 75%, GDP rose by 69%, and the stock
market as measured by the S&P 500 grew
more than threefold
• From 1994 to 2000 real output increased,
inflation was manageable and unemployment
dropped to below 5%, resulting in a soaring
stock market known as the Dot-com boom.

68. Triggering a recession by
September 11 attacks
• The economy worsened in 2001 with output
increasing only 0.3% and unemployment and
business failures rising substantially
• triggering a recession that is often blamed on the
September 11 attacks
• the fall of the US markets and in investor
confidence included numerous corporate
dishonors
• Through 2001 to 2007, the red-hot housing
market across the United.

69. The roots of Great recision-2007

70. Great Recession
• The most serious began with the collapse of
housing bubbles in California and Florida
• Millions of mortgages (averaging about $200,000
each) had been bundled into securities that were
resold worldwide
• A series of the largest banks in the U.S. and
Europe collapsed
– Lehman Brothers with $690 billion in assets;
– the leading insurance company AIG
– The leading bank Citigroup, and the two largest
mortgage companies
were bailed out by the government.

71. • Banks drastically tightened their lending policies,
despite infusions of federal money
• The stock market plunged 40%, wiping out tens of
trillions of dollars in wealth
• housing prices fell 20% nationwide wiping out trillions
more
• as the "Big Three" of the automobile industry (General
Motors, Ford and Chrysler) were on the verge of
bankruptcy, and the retail sector showed major
weaknesses
• lower-paying jobs constituted about 58% of the jobs
regained
Great Recession Cont’d

72. Obama accomplishes Keynes policy
• President Barack Obama signed the American
Recovery and Reinvestment Act of 2009 in
February 2009;
• Bailout package $787 billion in stimulus
through a combination of spending and tax
cuts
The plan is largely based on the
Keynesian theory that government
spending should offset the fall in
private spending during an
economic downturn;

73. Crowding out
• Critics claim that government spending cannot
offset a fall in private spending because
government must borrow money from the
private sector in order to add money to it.
• However, most economists do not think such
"crowding out" is an issue when interest rates are
near zero and the economy is stagnant.
• also point to problems of possible future inflation
and government debt caused by such a large
expenditure

74. leader in scientific research and
technological innovation
• In 1876, Alexander Graham Bell was awarded the first
U.S. patent for the telephone.
• Thomas Edison's laboratory developed
the phonograph, the first long-lasting light bulb, and
the first viable movie camera.
• Nikola Tesla pioneered the AC induction motor and
high frequency power transmission used in radio.
• In the early 20th century, the automobile companies
of Ransom E. Olds and Henry Ford popularized
the assembly line.
• The Wright brothers, in 1903, made the first sustained
and controlled heavier-than-air powered flight.

75. Technological and industrial development of US

76. Giant economy in the World
GDP $15.676 trillion (2012)
GDP growth 2.3% (2012)
GDP per capita $49,601 (2012)
(14th–2011, nominal; 6th–2011, PPP)
GDP by sector agriculture: 1.2%, industry: 19.2%, services: 79.6% (2011 est.)
Inflation (CPI) 1.7% (December 2011-December 2012)
The economy of the United States is the world's largest
national economy since at least the 1920s and the
world's second largest overall economy,

77. American businesses raise investments
• In 2010 healthcare/medical accounted for the
largest share of angel investments, with 30%
of total angel investments (vs. 17% in 2009)
• followed by software (16% vs. 19% in 2007)
• Biotech (15% vs. 8% in 2009)
• Industrial/energy (8% vs. 17% in 2009)
• Retail (5% vs. 8% in 2009)
• IT services (5%).

78. • world's wealthiest nations, with abundant natural
resources,
• a well-developed infrastructure, and high productivity
• the world's sixth-highest per capita GDP (PPP).
• The U.S. is the world's third-largest producer of oil and
second-largest producer of natural gas
• It is the largest trading nation in the world
– export trading partners are as of 2011: Canada, China, Mexico
and Japan.
 Of the world's 500 largest companies, 132 are headquartered in
the United States
 Highest net migration rate in the world.
 American investments in foreign countries total over $3.3 trillion,
Giant economy in the World

79. Wealth
• Domestic financial assets totaled $131 trillion
and domestic financial liabilities totaled $106
trillion
• the government has extended economic
control to other kinds of industries as well. In
the years following the Great Depression

80. Demograpghy factors
Population
below poverty line
15.0% (2011)
Gini coefficient 0.477 (2011)
Labor force 155.654 million (includes 12.332 mil.
unemployed, January 2013)
Labor force by
occupation
farming, forestry, and fishing: 0.7%
manufacturing, extraction, transportation,
and crafts: 20.3%
managerial, professional, and technical:
37.3%
sales and office: 24.2%
other services: 17.6% (2009)

81. Unemployment and Employment
Unemployment 7.9% (January 2013) (+0.1%)
Average gross salary $45,230 (May 2011)
Main industries Highly diversified, world leading,
high-technology innovator, second
largest industrial output in world;
petroleum, steel, motor
vehicles, aerospace,telecommunica
tions, chemicals, electronics, food
processing, consumer goods,
lumber, mining
Ease of Doing Business Rank 4th

82. In 2011, the ten largest U.S. employers
• Walmart, U.S. Postal Service, IBM, UPS,
McDonald's, Target Corporation, Kroger, Home
Depot, General Electric, and Sears Holdings
• World's five most valuable brands
–Apple, Google, IBM, McDonald's, and Microsoft

83. Port of Houston in the United States

84. Exports
Exports $1.564 trillion (2012)
Export goods capital goods, 27.9%; industrial supplies
and materials (except oil fuels), 24.8%;
consumer goods (except automotive),
11.8%; automotive vehicles and
components, 9.4%; food, feed, and
beverages, 8.6%; fuel oil and petroleum
products, 7.6%; aircraft and components,
6.1%; other, 3.8%.
Main export partners Canada 18.9%; Mexico 14.0%; China, 7.1%;
Japan, 4.5%; United Kingdom, 3.5% (2012)

85. Imports
Imports $2.299 trillion (2012)
Import goods Consumer goods (except automotive),
22.7%; capital goods (except computing),
18.7; industrial supplies (except crude oil),
18.4%; crude oil, 13.7%; automotive
vehicles and components, 13.1%;
computers and accesories, 5.4%; food,
feed, and beverages, 4.8%; other, 3.1%.
Main import partners China, 18.7%; Canada, 14.2%; Mexico,
12.2%; Japan, 6.4%; Germany, 4.8% (2012)
FDI stock $227.9 billion (2011)
Gross external debt $14.71 trillion / 98% of GDP (as of June
2011)

86. Government financials
Public debt $16.588 trillion/ 107.18% of GDP
Budget deficit $1.09 trillion (2012)
Revenues $2.45 trillion (individual income tax, 46.1%;
social insurance, 34.7%; corporate taxes, 9.9%;
other, 9.3% - 2012)
Expenses $3.54 trillion (Social Security, 21.5%; defense,
18.4%; Medicare, 13.2%; interest, 7.3%;
Medicaid, 7.1%; other, 32.4% - 2012)
Economic aid ODA $19 billion, 0.2% of GDP (2004)
Foreign reserves $151.866 billion (Dec. 2012)

87. New York City, financial center of the United States