American-Economy

ChapterIVAmericanEconomyI.Introduction1.TheeconomyoftheUnitedStatesishighlydeveloped.2.TheU.S.A.enjoysextraordinarydominanceintheworldeconomy.TheUSdollarisusedasaninternationalcurrency.3.ThedevelopmentoftheAmericaneconomyhasexperiencedthreestages:commercialcapitalism,industrialcapitalismandcorporatecapitalism.II.Reasonsforitsdevelopment1.Geographically,natureofferedAmericarichnaturalresourcesandfertilefarmlandaswellassuitableclimateforfarming.2.Historically,theAmericanIndependentWarandCivilWarclearedtheroadfortheAmericancapitalisticdevelopment.TheU.S.A.gotagreatamountofbenefitsfromthetwoworldwars.3.Socially,Americansocietyhasattachedcloseattentiontoindividualcreativity,capabilityandperseverance.Apopulationofmorethan300millionpeopleprovidesbothworkersandconsumersforAmericanbusiness.4.InvolvementofAmericanGovernmentThefederalgovernmentactsasaregulatorinAmericaneconomydevelopment.III.Agriculture1.OneofthebiggestagriculturalcountryandleadingexporterofagriculturalproductsA.FertilesoilandfavorableclimateB.ProductiveAmericanfarmers2.Stagesofitsdevelopment:A.Middle19thC.:mechanizationB.20thC.:corporationhavedominatedagriculturewithextensiveuseoftechnologyandadvancedscientificmethods.Benefits•BothAmericanandforeignconsumersbenefitfromtheAmericanfarmers,low-costoutput.•ThestandardoflivingofAmericanfarmersisgenerallyhigh.•ThereadinessofmanyfarmerstoadoptnewtechnologyhasbeenoneofthestrengthsofAmericanagriculture.TheCornBelt•AregionoftheMidwesternUnitedStateswherecornhastraditionallybeenthepredominantcrop.Geographicdefinitionsoftheregionvary.TypicallyitisdefinedtoincludeIowa,Indiana,Illinois,andOhio—approximately50%ofallcorngrownintheU.S.isfromthesefourstates.IV.Industry1.Conditions:A.Itisintheleadingposition.B.Thefirstthree:rawmaterial,automobiles,radiosandTVsets2.Stagesofitsdevelopment:A.OntheeveofWWI,1/3oftheworld’sindustrialproduction,worldwidemarkets.Majorindustries:aircraft,computers,chemicals,electronics,motorvehicles,paperandpulp,textiles,telecommunicationequipmentetc.B.Postwar:highlyeconomicaldevelopmenta.innuclearenergyindustry,electronics,aircraftb.SouthernandWesternAmericadevelopquickly.c.BigcorporationsarethemosteasilyrecognizableandhighlypublicizedfeatureofAmericaneconomy.d.Smallenterprisesareveryimportantandessential.V.RecentDevelopment1.In1997,theAmericaneconomyisenteringitsseventhconsecutiveyearofgrowth.2.Since1980s,theU.S.A.hasspedupitsprocessofimportingandexporting.3.Itisthefirstcountrytorecognizetheimportanceofcomputerandinformationtechnology.4.AnimportantaspectofmodernAmericaneconomyisthestockmarket.VI.Potentialproblems1.Bankswillrefusetoloaninordernottoriskanydangerofnotgettingbackmoney,whichfurtherrestrictsconsumingandinvesting2.Inordertofacenewinternationaleconomicsituation,Americaneconomyhastomakeadjustment.TheEndInvolvementofAmericanGovernment•ThemodernAmericaneconomyisdescribedas“freemarket”system,butnevercompletelyfree.•TraditionallyU.S.governmenthasbeenreluctanttointercedeineconomicdevelopment.•Withthedevelopmentofindustrialization,federalbecamemoreandmoreinvolvedinregulatingeconomy.•TheGreatDepressionhelpedincreasethegovernmentinterference.•Inthepostwaryearsthegovernmentfunctionincreasedinrunningeconomy.•1980-1988“freemarketprinciples”•NowtheAmericaneconomyischaracterizedbymonopolywithhighdegree.BackThethreeindustrialrevolutions•ThefirstIndustrialRevolutionbroughtgreatchangestoEnglandfromthemiddleofthe18thcenturytothemiddleofthe19thcentury.Thefirstindustrialrevolution:mechanizationofproductionsystemsresultsinashiftfromhome-basedhandmanufacturingtolarge-scalefactoryproduction.•ThesecondIndustrialRevolution(1871–1914)involvedsignificantchangestoWesternsocietyandtotherestoftheworld.Thesecondphaseoftheindustrialrevolutionhadtheinternalcombustionengineandelectricalmotorsandgeneratorsatitscore.•ThethirdIndustrialRevolution(1940s-50s)isnowmakingitsappearanceintheUnitedStatesandotherindustrialcountries.Itisaninformationrevolution“,aperiodofrapidtechnologicaladvanceassociatedwiththeintroductionofinformationtechnologies.Back