The US possesses the most diverse economy among all countries in the world. The recent years have seen researchers develop interest and enthusiasm in studying the economy of the US, with findings showing US as the largest, and the most advanced in regards to technology. The GDP results also indicate that US accounts 26 percent of the overall output in the world’s economy, though the population of the country is as low as 4 percent of the total world population.We will write a custom Development of the United States Economy specifically for you
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A country’s economy is usually a crucial component in its placement in the global realms. It encompasses a country’s success in financial, political, resources as well as societal management. Most nations have the ruling government financial organ in control of the economy, and as a determinant of the country’s spending and financial gain.
Prerequisites to effectiveness in the management of a country’s finances include availability of sources of finance, projects that have to be catered for by the available finances, as well as appropriately set objectives and country’s mission. The United States is also known to be the largest nation within the American continent, a factor contributing majorly to the economy (JRank Encyclopedia, Para 1).
The history of the United States dates back in the Middle Ages, being accounted for by the rampant migrations to the country, increased enthusiasm by the Americans to grow and become the best economy, as well as the technological innovations in the proceeding ages. A variety of factors account for the economy, which are inclusive of abundance of natural resources, the intervention by the American government in the control of the economic realms, as well as the emphasis on free trade.
Rampancy of economic indicators has also taken pre-eminence in the economic control, including employment, education systems, and varieties of economic sectors as well as the involvement of the US government. The regulation of the economy by the US government as well as the Federal Reserve has also played a significant role in determining the direction of the economy in the recent years (Whalen 173).
The discussion in this paper is directed towards a critical analysis of the US economy, whose critical understanding will be accomplished via the establishment of a general overview. A historical context, factors accounting for the economy as well as the regulation of the US economy are also deemed crucial at this juncture.
A critical overview of the US economy
The US economy is characterized by economic freedom through enabling the private sector in the making most of the country’s economic decisions; the tradition and the modern status of the American economy have been given a credit of success by all other world continents. Despite some heavy economic depressions, a wave of economic success is said to be in the control of the great economy.Get your
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Over the last decades, economic growth contributors have been excellently managed by the concerned individuals and bodies, however, certain controversies have been in operation since time immemorial. Industrial growth that had its way in the late 18th century up to date has been duly in control of the economy. The wave of agrarian revolution that swept US early enough at the end of the Stone Age period was also vital in the economic control.
Technological advancements have the US ready for change at all times, hence contributing to the stabilization of the economy over the economic years. The optimistic residents of the United States’ attitude in wealth creation and accumulation are a rationale to the growth of the economy over the past years.
The regulation and control of the monetary and economic institutions by the governments and later the involvement of the Federal Reserve has also played a crucial role in the economy of US. Furthermore, the major economic controller in the world, the United States utilizes the U.S Dollar as its economic rate which is usually very high as compared to those in other continental nations (Langran $ Schnitzer 11).
On the other hand, the economic control realms are dominated by the US government via the application of economic control policies. The recent years have seen the change of economic control, where the government involves the Federal Reserve, a state-owned body. The body has been amply charged with the responsibility of seeing into the government receipts and spending and the control of the rate at which the state consumes and generates funds.
The supervision of the banking system is also their role, due to the long arising bank panics over the years as a result of the rampant recessions. Requirements for reserve variations are also a responsibility they have as well as in the regulation of the stock markets, which are identified as great markers of economic control (Orhangazi.24).
The historical context of the US economy
The US economy is deeply rooted in the 16th and 17th century European settlements. The periods saw the transformation to a minute farming economy that is independent from as a state of colonial control. The year 1776 was the period of reference to this section of America; however, the US was to later witness an improved development and economic growth, currently seen as the contributor to a quarter portion of the world economy.
The huge economic increment was attributed to the presence of a supportive legal system, productive farmlands that covered vast areas etc. The abundance of natural resources like coal, oil, and timber was also considered vital in driving economic growth in addition to the presence of a large market that was adversely unified in all ways (Task Force on the Future of American Innovation 7).We will write a custom
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The US is also famous in history in its regard and commitment to invest in material projects as well as human capital as a way of reserving the economic resources. It is also known for having a willing heart to exploit labour appropriately to enhance productivity, performance as well as to enhance economic sustenance. The recent years have also become crucial for the economy in terms of US attachment of value to their cultural landscape, which offers a ground for entrepreneurship.
The US is also identified with having a set of institutions that is unique in its design that is put forth to encourage utilization of available natural and artificial systems as well as to enable cheap exploitation of resources that are available as economic growth factors. This has also abundantly contributed to the known results of the US GDP per capital that has currently gone beyond that of the UK in the recent years.
Therefore, the economy of this giant has been able to maintain workers’ wages that are exceptionally high, resulting in the current attraction for immigrants into the country, and especially those from the Asian continent.
However, certain periods are termed as serious in regards to US economic recessions, sometimes overtaking the most important sectors such as employment, education as well as the products industries. The 18th century as well as the 1930’s recessions are ideally known in history and are coined with the recessions of the last two years. Nevertheless, the economy of the US remains the best among all other nations in the whole world (Thredgold 133).
An analysis of the US economic indicators and their rationale
The US economy is manned by the government, and a cluster of economic indicators is acknowledged. The rampancy of private sector enterprises has made it possible for them to become the largest employer, taking 53% of the US workers. Additionally, the presence of these private is crucial to the economy and are considered as a long term indicators of the economy.
The manufacturing sector in the US is the largest in regards to production of locally and internationally consumed goods all over the world. The relating sector is also a main emphasis of the US, making the country an all-round economist, leaving behind no factors of economic growth. The regulators of the economy encourage people to invest in private sectors, which are given the mandate to make the main economic decisions in regard to the economic directions (United States Economy Profile, Para 3)
The third indicator is education that id ideally emphasized in the US. The presence of a large number of tertiary institutions in the country provides a rationale to the growth of the economy. Government involvement in the control of the economy is also a long-term economic indicator. The US government and the Federal Reserve are in full control of the economy up to date, spearheading all realms of spending and receiving.Not sure if you can write
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This is accomplished via the application of macro-economic policies that regulate every sector of the economy. This provides a rationale for a centralized economic control system that is accountable for every answer behind the economy. The US largest population in the world attributes highly the growth of the economy as a crucial economic indicator (Frumkin 26).
An analysis of Factors accounting for the economy of the United States
The US economic success has been attributed to its high and enthusiastic population. The high population constitutes of scholars in their educational advancements, the employed and non-employed, academicians, researchers, industrial investors, agriculturalists etc. The second factor that makes the American economy the highest paced is the possession of a multicultural population. The history of the country has experienced rampant immigrations especially by the Asian community, the Japanese and the Chinese.
A multicultural population has better chances of selling and buying ample ideas from one another, which ultimately are a prerequisite to the growth of the economy. Thus, the Americans have long embraced a mixed culture for economic stabilization. The abundance of natural resources has been a very crucial factor driving the economic development since time immemorial.
The embracement of available labour force by the employers regardless of their origin has also been a crucial in the economic growth in the US. Moreover, the centralized economic control by the government and the Federal Reserve arm has played a pivotal role in the economic status determination especially in the last two years (Campbell 190).
Regulation of the US economy
The regulation and control of the monetary and economic institutions by the government and later the involvement of the Federal Reserve has played a crucial role in the economy of US. The economic control realms are dominated by the US government via the application of economic control policies.
The recent years have seen the change of economic control, where the government involves the Federal Reserve, a state-owned body. The body has been amply charged with the responsibility of seeing into the government receipts and spending and the control of the rate at which the state consumes and generates funds. The supervision of the banking system is also their role, due to the long arising bank panics over the years as a result of the rampant recessions.
Requirements for reserve variations are also a responsibility they have as well as in the regulation of the stock markets, which are identified as great markers of economic control. Two instruments are evident that facilitate such desired achievements, including the fiscal as well as the monetary policy, with the fiscal policy dealing with public spending and savings, while monetary policy dealing with national liquidity.
Notable failures have been experienced along the way in the efforts by the government to mingle the above two policies, proving such an integration a hard task. The impacts of economic control by the government and the Federal Reserve are inclusive of the enablement of strategic planning for a country’s projects with the application of economic control policies, change management, as well as economic stabilization (Atkinson 127).
The US is found in possession of the most huge, technologically advanced technology as compared to other world countries. The historical development of the economy is majorly attributed to the abundance of natural resources, labor force utilization, advancements in the private sector as well as the expansion of the education system.
Factors like government control, large population as well as the investments in a free market are attributed to the recent economical advancements. The regulation of the economy by the US government and the Federal Reserve has also played a pivotal role in the determination of economic direction. However, more research should be conducted for provision of concise information in regards to the US economy.
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Campbell, John, Hollingsworth, Joseph & Lindberg, Leon. Governance of the American economy. Cambridge: Cambridge University Press, 1991.
Frumkin, Norman. Tracking America’s economy. NY: M.E. Sharpe, 2004.
JRank Encyclopedia. United States of America – Overview of economy. NY. Advameg, Inc, 2011. Web.
Langran, Robert and Schnitzer, Martin. Government, business, and the American economy. NY: Rowman & Littlefield, 2007.
Orhangazi, Özgür. Financialization and the US economy. London: Edward Elgar Publishing, 2008.
Task Force on the Future of American Innovation. The knowledge economy: is the United States losing its competitive edge? Benchmarks of our innovation future, 2005. Web.
Thredgold, Jeff. EconAmerica: why the American economy is alive and well– and what that means to your wallet. NJ: John Wiley and Sons, 2007.
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Whalen, Edward. A guided tour of the United States economy: promises among the perils. CT: Greenwood Publishing Group, 2002.