The Future of America's Economy, Politics, and Social Policies: Chris Hedges (2006)

• published: 02 Nov 2013
• views: 884

The economy of the United States is the world's largest national economy and the world's second largest overall economy, the GDP of the European Union being approximately $2 trillion larger. The United States' nominal GDP was estimated to be $15.7 trillion in 2012, approximately a quarter of nominal global GDP. Its GDP at purchasing power parity is also the largest in the world, approximately a fifth of global GDP at purchasing power parity. The United States has a mixed economy and has maintained a stable overall GDP growth rate, a moderate unemployment rate, and high levels of research and capital investment. Its five largest trading partners are the European Union, Canada, China, Mexico and Japan. The US is one of the world's wealthiest nations, with abundant natural resources, a well-developed infrastructure, and high productivity. It has 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 second-largest trading nation in the world behind China. It has been the world's largest national economy (not including colonial empires) since at least the 1890s. As of 2010, the country remains the world's largest manufacturer, representing a fifth of the global manufacturing output. Of the world's 500 largest companies, 132 are headquartered in the US, twice that of any other country. The country is one of the world's largest and most influential financial markets. About 60% of the global currency reserves have been invested in the US dollar, while 24% have been invested in the Euro. The New York Stock Exchange is the world's largest stock exchange by market capitalization. Foreign investments made in the US total almost $2.4 trillion, which is more than twice that of any other country. American investments in foreign countries total over $3.3 trillion, which is almost twice that of any other country.[29] Consumer spending comprises 71% of the US economy in 2013. The labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world. The U.S. is one of the top-performing economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report, and others. The US is ranked first globally in the IT industry competitiveness index. The US economy is currently embroiled in the economic downturn which followed the Financial crisis of 2007--2008, with output still below potential according to the CBO and unemployment still above historic trends. As of March 2013, the unemployment rate was 7.6% or 11.7 million people, while the government's broader U-6 unemployment rate, which includes the part-time underemployed, was 13.9%. With a record proportion of long term unemployed, continued decreasing household income, and new federal budget cuts, the US economy remained in a jobless recovery. At 11.3%, the U.S. has one of the lowest labor union participation rates in the OECD world. Extreme poverty, meaning households living on less than $2 per day before government benefits, doubled from 1996 levels to 1.5 million households in 2011, including 2.8 million children. In 2013, child poverty reached record high levels, with 16.7 million children living in food insecure households, about 35% more than 2007 levels. There were about 643,000 homeless persons in the US in January 2009, about two thirds of whom stayed in an emergency shelter or transitional housing program and the other third were living on the street, in an abandoned building, or another place not meant for human habitation. In 2008, the US spent more on health care per capita ($7,146), and as percentage of GDP (15.2%), than any other nation. But in 2013, life expectancy was less than 17 other high-income countries. In 2010, 49.9 million residents or 16.3% of the population did not carry health insurance, the lack of which causes roughly 48,000 unnecessary deaths per year.[43] In 2007, 62.1% of filers for bankruptcy blamed medical expenses. About 25% of all senior citizens declare bankruptcy due to medical expenses, and 43% are forced to mortgage or sell their primary residence. Total public and private debt was $50.2 trillion at the end of the first quarter of 2010, or 3.5 times GDP. In October 2012, the proportion of public debt was about 1.0043 times the GDP. Domestic financial assets totaled $131 trillion and domestic financial liabilities totaled $106 trillion. The US economy is regularly reviewed with comprehensive economic data analysis in the Beige Book of the Federal Reserve System, the Bureau of Economic Analysis of the Department of Commerce, the Bureau of Labor Statistics of the Labor Department and economic indicators of the US Census. http://en.wikipedia.org/wiki/Economy_of_the_United_States