U.S. Economy



U.S. Economy

Introduction

The United States of America is one of the powerful economies in the world as compared to Europe which once was superior in terms of Gross domestic product. USA now has a GDP of 14266 billion in 2009 representing about one fifth of the global GDP. The U.S. had in 2002 a GDP per capita (calculated in purchasing power parities) which was 39% higher than that of the average of the EU-15 (32% higher than that of the France, 39% to that of Germany). The U.S. has 50% of the global pool of financial returns including 51 firms. It can be said that among the one hundred largest listed companies in the world are American and the potential growth in the U.S.A is greater than 3.5% against 2% in Europe (Clinton, 2011).

Discussion

Current Economic Situation of U.S

U.S is one of the vast countries, which has provided many natural resources. The U.S. has a GDP per capita among the highest in the world. Their economic power, due to productivity, a rate of employment and working time important, and more than 150 million workers, allows them to maintain the most powerful army in the world and be in a strong position in trade negotiations and diplomatic (Clinton, 2011). The American universities drain the country's brightest students, and place the country at the forefront of technological progress, especially for "future technologies" (biotechnology, information technology and communication, etc) (Clinton, 2011). The developed infrastructure, the level of low taxation , the spirit of free enterprise that results from economic liberalism , make the economy of the United States one of the most competitive in the world (Clinton, 2011). In this market economy, the sectors most dynamic are the electronics, aerospace, biotechnology and defense industries. In 2010, the U.S. remains the largest recipient of Foreign Direct Investments (FDI) with $ 110 billion (Clinton, 2011).

The dollar serves as a reference currency in the world, the United States can experience current account deficits are significant, representing up to 6% of GDP, which allow to satisfy the thirst for consumption by American households, but the debt vis-à-vis other countries. This situation is not sustainable will not be resolved by a lower exchange rate of the dollar, or a decline in household consumption, which may cause a decline in business worldwide. While developed countries are generally the least unequal, the United States are more than equivalent, although poverty is low. They are also to blame for high oil consumption, the non-ratification of the Kyoto Protocol, or the liberty they take with certain rules of international trade (Clinton, 2011).

Fiver Year Economic performance

The economic crisis of 2008-2012 has been initiated in the early months of 2008 around the world following a financial crisis erupted in the summer of 2007 (which originated in the United States with the subprime crisis). Among the main factors of the crisis include the high prices of raw materials (oil in particular), a food crisis global, high inflation globally, the threat of a recession around the world and to end a crisis in credit leading to a collapse of trust of stock markets.

The financial crisis erupted in August 2007 followed ...