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Resource FormSharePoint Contact Information PCV Contact Name: Karin N. Jones Group Number: 38 Email: knjoneslaw@hotmail.com Resource Information Title: Author(s): Karin N. Jones Topic: The United States Economy guest lecture Description: This is the presentation for the guest lecture I gave on the U.S. Economy to university students. It has a MS Word document with notes that goes along with it. Document Type: Presentation Date Developed: March 2011 Please review the documents you intend to submit and certify that they do not include any of the following by indicating “NO”: Overt remarks about the political affairs of the host country No Disparaging remarks about the host country no Comments that are culturally insensitive no Information that could pose a security risk for a PCV no Remarks of matters of concern to PC or US foreign policy no Comments on matters that may impair the effectiveness of PC or PCVs no

The United States Economy Karin N. Jones Community Development Volunteer Peace Corps Ukraine

Introduction • U.S. as capitalist economy? • Is there such a thing as “pure” capitalism? • U.S. as mixed economy. • U.S. economy undergoing conversion.

Early Days • Agricultural economy. • Disagreement over how to run the economy. • Constitution – powers granted to federal government • Issue money • Impose tax on imports • Protect intellectual property

Land and Slavery • Land granted to governors sold cheap. • South’s reliance on slave labor. • Importance of cotton. • Opportunities during Civil War to expand government.

Invention • Post-Civil War inventions. • Eli Whitney • Telegraph, telephone, electricity, transcontinental railroad.

The Industrial Revolution • Limited primarily to the Northeast. • Immigrant workers. • Depression of 1890s. • Growth of electricity.

The Great Depression and The New Deal • The Great Depression • Stock market crash of 1929. • Battle over trade. • Drought and poor planting practices. • Banking Crisis. • The New Deal

World War II

Post-World War II • Growth: • Automobile industry • Housing industry • Middle class • Population (Baby Boom Generation) • Marshall Plan • IMF and World Bank • Business consolidation • Change in workforce

Civil Rights and the 1970s • Equal rights movements for Blacks, women. • Nixon’s wage and price control program. • Oil shocks and inflation.

Reaganomics • Cut taxes to stimulate the economy • Criticisms • Supply-side economics • Increased budget deficit

Deregulation

Technology • Changes so fast the government cannot keep up • Old computers • Apple • The Internet

The New Economy

The Real Estate Bubble • Home ownership encouraged • Low interest rates • Subprime mortgages • Refinances • Lack of regulation • Securitization

GDP

Manufacturing • Moving operations offshore • Purchasing foreign parts and components • Concentrating on higher-value products • Manufacturing jobs • Today – 10% of workforce • 1980 – more than 20% • 2006 U.S. produced $1.5 trillion in products • ¼ of total worldwide population

Top 5 Manufacturers in 2007 (after the U.S.) $1,106 billion USD $926 billion USD $670 billion USD $362 billion USD $345 billion USD

Agriculture • Early 20th century versus today • Size of average farm • Changes in exports

Unions/Organized Labor • When and why they came into being • Taft-Hartley Act • Auto workers unions after WWII • Unions today

Trade • U.S. has world’s most open borders • What the U.S. exports • Who are the top customers

Small Business • Small enterprises account for • 52 percent of all U.S. workers • Majority of job growth • Represent entry point into economy for new groups • Failure rate

Where Americans Work

Distribution of Wealth • Ratio of CEO pay to factory worker pay • Who has what • The top 5% richest Americans own more than half the wealth in America. • The top 20% own over 80% of the wealth. • The lowest 20% have zero wealth (no assets).

U.S. Economy Today • Still the world’s largest and most diverse • High productivity • Fortune 500 companies • Challenges

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