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)