Economy of the United States

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Economy of the United States

New York City, the financial center of the United States

and second largest center in the world. [1]
Currency United States dollar (USD) = $ 1
Dollar Index
Fiscal year October 1, 2016 September 30, 2017
Trade WTO, OECD, NAFTA and others
organizatio
ns
Statistics
GDP $18.56 trillion (2016, Nominal), $18.56
trillion (2016, PPP)
GDP rank 1st (nominal); 2nd (PPP)
GDP 1.9% (2016)[2]
growth 2.6% (2015)[3]
GDP per $57,300 (2016, nominal), $57,300 (2016,
capita PPP)[4]
GDP per 5th (nominal); 10th (PPP)
capita rank
GDP by Agriculture: 1.1%
sector Industry: 19.4%
Services: 79.5%
(2016)[5]
Inflation (CP 1.3% (Sep 2016)[6]
I)
Population 13.66% (2015),[7]
belowpover
ty line
Gini 0.482 (2015 est.)[8]
coefficient
Labor 158.6 million (August 2016)[9]
force 7.8 million unemployed (August 2016)[10]
Labor Farming, Forestry, and Fishing: 0.7%
force by Manufacturing, Extraction,Transportation,
occupation and Crafts: 12%
Managerial, Professional, andTechnical:
38%
Sales and Office: 23%
Installation and Maintenance: 3.3%
Other Services: 23%
(June 2014)
[note: figures exclude the unemployed][11]
Unemploy 4.7% (May 2016)[12]
ment
Average $49,000, annual,(2015)[13]
gross
salary
Average net $40,000, annual,(2015)[14]
salary
Main Highly diversified, world leading, high-
industries technology innovator, second-largest
industrial output in the
world;petroleum, steel, motor
vehicles,aerospace, telecommunication,ch
emicals, arms industry, electronics,food
processing, consumer
goods,lumber, mining
Ease-of- 8th (2017)[15]
doing-
business
rank
External
Exports $1.47 trillion (2016 est.)
Export machines, 33.9%
goods industrial supplies, 31.2%
consumer goods (except automotive),
12.3%
motor vehicles and components, 9.8%
food, feed, and beverages, 8.9%
other, 3.9%. (2014)[16]
Main Canada 18.6%
export
partners Mexico 15.7%
China 7.7%
Japan 4.2%
(2015)[17]
Imports $2.21 trillion (2016 est.)
Import capital goods 25.2%, consumer goods
goods (except automotive) 23.8%, industrial
supplies (except crude oil) 17.8%, motor
vehicles and components 14.0%,crude
oil 10.5%, food, feed, and beverages 5.4%,
other 3.3%. (2014)[18]
Main China 21.5%
import Canada 13.2%
partners Mexico 13.2%
Japan 5.9%
Germany 5.5%
(2015)[19]
FDI stock $3.65 trillion (2016)[20]
Gross exter $17.91 trillion (31 December 2016 est.)
nal debt note: approximately 4/5ths of US external
debt is denominated in US dollars
Public finances
Public debt 73.8% of GDP (2016 est.)
Budget -2.9 of GDP (2016)
deficit note: for the US, revenues exclude social
contributions of approximately $1.0 trillion;
expenditures exclude social benefits of
approximately $2.3 trillion (2015 est.)
Revenues $3.0 trillion (individual income tax, 46.2%;
social insurance, 33.9%; corporate taxes,
10.6%; other, 9.3% FY2014)[21]
Expenses $3.5 trillion (Social Security, 24.3%;
defense, 17.2%; Medicare, 14.6%;
unemployment and other income security,
14.6%; Medicaid, 11.7%; interest, 6.5%;
veterans, 4.3%; education and training,
2.6%; other, 4.2% FY2014)[22]
Economic a ODA $48 billion, 0.03% of GDP (2012)[23]
id
Credit rating Standard & Poor's:[24]
AA+ (Domestic)
 AA+ (Foreign)
AAA (T&C Assessment)
Outlook: Stable[25]
Moody's:[25]
AAA
Outlook: Stable[26]
Fitch:[27]
AAA
Outlook: Stable
Foreign $0.14 trillion (May 16, 2014)[28]
reserves
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

Historical US GDP per capita, 19292011

US per capita income distribution by county, 2009-2013 American Community

Survey Estimates.
US household income distribution by county, 2009
The United States is the world's largest national economy in nominal terms and
second largest according to purchasing power parity (PPP), representing 22%
of nominal global GDP and 17% of gross world product (GWP).[4] The United
States' GDP was estimated to be $17.914 trillion as of Q2 2015. [4][29] The U.S.
dollar is the currencymost used in international transactions and is the world's
foremost reserve currency, backed by its science and technology, its
military, the full faith of the US government to reimburse its debts, its central
role in a range of international institutions since World War II and
the petrodollar system.[30][31] Several countries use it as their official currency,
and in many others it is the de facto currency.[32] The United States has amixed
economy[33][34] and has maintained a stable overall GDP growth rate, a
moderate unemployment rate, and high levels of research and
capital investment.[35]Its seven largest trading
partners are Canada, China, Mexico, Japan, Germany, South Korea, and
the United Kingdom.[36]
The US has abundant natural resources, a well-developed infrastructure, and
high productivity.[37] It has the world's ninth-highest per capita GDP
(nominal) and tenth-highest per capita GDP (PPP) as of 2013.[38][39] Americans
have the highest averagehousehold and employee income
among OECD nations, and in 2010 had the fourth highest median household
income, down from second highest in 2007.[40][41] It has been the world's largest
national economy (not including colonial empires) since at least the 1890s.[42]
The U.S. is the world's third largest producer of oil[43] and natural gas.[44] It is
one of the largest trading nations in the world [45] as well as the world's second
largest manufacturer, representing a fifth of the global manufacturing output.
[46]
The US not only has the largest internal market for goods, but also
dominates the trade in services. US total trade amounted to $4.93T in 2012. Of
the world's 500 largest companies, 128 are headquartered in the US. [47]
The United States has one of the world's largest and most influential financial
markets. The New York Stock Exchange is by far the world's largest stock
exchange by market capitalization.[48] Foreign investments made in the US total
almost $2.4 trillion,[49] while American investments in foreign countries total
over $3.3 trillion.[50] The economy of the U.S. leads in international ranking
on venture capital[51] and Global Research and Development funding.
[52]
Consumer spending comprises 71% of the US economy in 2013.[53] The
United States has the largest consumer market in the world, with ahousehold
final consumption expenditure five times larger than Japan's.[54] The labor
market has attracted immigrants from all over the world and its net migration
rate is among the highest in the world.[55] 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.[56]
The US economy went through an economic downturn following the financial
crisis of 200708, with output as late as 2013 still below potential according to
theCongressional Budget Office.[57] The economy, however, began to recover in
the second half of 2009, and as of November 2015, unemployment had
declined from a high of 10% to 5%.
In December 2014, public debt was slightly more than 100% of GDP.
[58]
Domestic financial assets totaled $131 trillion and domestic
financial liabilities totaled $106 trillion.[59]
Contents
[hide]
1History

o 1.1Colonial era and 18th century

o 1.219th century

o 1.320th century

o 1.421st century

2Business culture

3Demographic shift

4GDP

o 4.1GDP growth

o 4.2GDP by industry

5Employment

o 5.1Unemployment

o 5.2Employment by sector

6Research, development, and entrepreneurship

7Income and wealth

 o 7.1Home ownership

o 7.2Profits and wages

o 7.3Poverty

8Financial position

9Composition of economic sectors

10Notable companies and markets

o 10.1Forbes top 10 U.S. corporations by revenue

11Energy, transportation, and telecommunications

12Finance

13Health care

14International trade

15Currency and central bank

16Law and government

o 16.1Regulations

o 16.2Taxation

o 16.3Expenditure

o 16.4Budget

17List of state economies

18See also

19Sources

20References

21External links

History[edit]
Main article: Economic history of the United States
Colonial era and 18th century[edit]
The economic history of the United States began with American settlements in
the 17th and 18th centuries. The American colonies went from marginally
successful colonial economies to a small, independent farming economy, which
in 1776 became the United States of America.
19th century[edit]
In 180 years, the US grew to a huge, integrated, industrialized economy that
made up around one fifth of the world economy. As a result, the US GDP per
capita converged on and eventually surpassed that of the UK, as well as other
nations that it previously trailed economically. The economy maintained high
wages, attracting immigrants by the millions from all over the world. [citation needed]
In the early 1800s the United States were largely agricultural with more than
80 per cent of the population in farming. Most of the manufacturing centred on
the first stages of transformation of raw materials with lumber and saw mills,
textiles and boots and shoes leading the way. The rich resource endowments
contributed to the rapid economic expansion during the nineteenth century.
Ample land availability allowed the number of farmers to keep growing, but
activity in manufacturing, services, transportation and other sectors grew at a
much faster pace. Thus, by 1860 the share of the farm population in the US had
fallen from over 80 per cent to roughly 50 per cent. [60]
In the 19th century, recessions frequently coincided with financial crises.
The Panic of 1837 was followed by a five-year depression, with the failure of
banks and then-record-high unemployment levels. [61] Because of the great
changes in the economy over the centuries, it is difficult to compare the
severity of modern recessions to early recessions. [62] Recessions after World
War II appear to have been less severe than earlier recessions, but the reasons
for this are unclear.[63]
20th century[edit]
At the beginning of the century new innovations and improvements in existing
innovations opened the door for improvements in the standard of living among
American consumers. Many firms grew large by taking advantage of economies
of scale and better communication to run nationwide operations. Concentration
in these industries raised fears of monopoly that would drive prices higher and
output lower, but many of these firms were cutting costs so fast that trends
were towards lower price and more output in these industries. Lots of workers
shared the success of these large firms, which typically offered the highest
wages in the world.[64]
The United States has been the world's largest national economy in terms of
GDP since at least the 1920s.[42] For many years following the Great
Depression of the 1930s, when danger of recession appeared most serious, the
government strengthened the economy by spending heavily itself or cutting
taxes so that consumers would spend more, and by fostering rapid growth in
the money supply, which also encouraged more spending. Ideas about the best
tools for stabilizing the economy changed substantially between the 1930s and
the 1980s. From the New Deal era that began in 1933, to theGreat
Society initiatives of the 1960s, national policy makers relied principally
on fiscal policy to influence the economy.[citation needed]
During the world wars of the twentieth century the United States fared better
than the rest of the combatants because - aside from the attack at Pearl Harbor
on 7 December 1941 - neither world war was fought on American territory. Yet,
even in the United States, the wars meant sacrifice. During the peak of Second
World War activity, nearly 40 per cent of US GDP was devoted to war
production. Decisions about large swaths of the economy were largely made for
military purposes and nearly all relevant inputs were allocated to the war
effort. Many goods were rationed, prices and wages controlled and many
durable consumer goods were no longer produced. Large segments of the
workforce were inducted into the military, paid half wages, and roughly half of
those were sent into harms way. [65]
The approach, advanced by British economist John Maynard Keynes, gave
elected officials a leading role in directing the economy, since spending and
taxes are controlled by the U.S. President and the Congress. The "Baby
Boom" saw a dramatic increase in fertility in the period 19421957; it was
caused by delayed marriages and childbearing during depression years, a
surge in prosperity, a demand for suburban single-family homes (as opposed to
inner city apartments) and new optimism about the future. The boom crested
about 1957, then slowly declined.[66] A period of high inflation, interest rates
and unemployment after 1973 weakened confidence in fiscal policy as a tool
for regulating the overall pace of economic activity. [67]
The U.S. economy grew by an average of 3.8% from 1946 to 1973, while
real median household income surged 74% (or 2.1% a year).[68][69] The economy
since 1973, however, has been characterized by both slower growth (averaging
2.7%), and nearly stagnant living standards, with household incomes
increasing by 10%, or only 0.2% annually. [70]
The worst recession in recent decades, in terms of lost output, occurred during
the financial crisis of 200708, when GDP fell by 5.0% from the spring of 2008
to the spring of 2009. Other significant recessions took place in 195758, when
GDP fell 3.7%, following the 1973 oil crisis, with a 3.1% fall from late 1973 to
early 1975, and in the 198182 recession, when GDP dropped by 2.9%. [71]
[72]
Recent, mild recessions have included the 199091 downturn, when output
fell by 1.3%, and the 2001 recession, in which GDP slid by 0.3%; the 2001
downturn lasted just eight months. [72] The most vigorous, sustained periods of
growth, on the other hand, took place from early 1961 to mid-1969, with an
expansion of 53% (5.1% a year), from mid-1991 to late in 2000, at 43% (3.8% a
year), and from late 1982 to mid-1990, at 37% (4% a year). [71]
In the 1970s and 1980s, it was popular in the U.S. to believe that Japan's
economy would surpass that of the U.S., but this did not happen. [73]
Since the 1970s, several emerging countries have begun to close the economic
gap with the United States. In most cases, this has been due to moving the
manufacture of goods formerly made in the U.S. to countries where they could
be made for sufficiently less money to cover the cost of shipping plus a higher
profit. In other cases, some countries have gradually learned to produce the
same products and services that previously only the U.S. and a few other
countries could produce. Real income growth in the U.S. has slowed.
The North American Free Trade Agreement, or NAFTA, created one of
the largest trade blocs in the world in 1994.
Since 1976, the U.S. has sustained merchandise trade deficits with other
nations, and since 1982, current account deficits. The nation's long-standing
surplus in its trade in services was maintained, however, and reached a record
US$231 billion in 2013.[74] In recent years, the primary economic concerns have
centered on: high household debt ($11 trillion, including $2.5 trillion
in revolving debt),[75] high net national debt ($9 trillion), high corporate debt
($9 trillion), high mortgage debt (over $15 trillion as of 2005 year-end),
high external debt (amount owed to foreign lenders), high trade deficits, a
serious deterioration in the United States net international investment
position (NIIP) (24% of GDP),[76] and high unemployment.[77] In 2006, the U.S.
economy had its lowest saving rate since 1933. [78] These issues have raised
concerns among economists and national politicians. [79]
21st century[edit]

U.S. public net debt and the total public debt

Comparison between U.S. states and countries by GDP in 2012.
The United States economy experienced a crisis in 2008 led by a derivatives
marketand subprime mortgage crisis, and a declining dollar value.[80] On
December 1, 2008, the NBER declared that the United States entered
a recession in December 2007, citing employment and production figures as
well as the third quarter decline in GDP. [81] The recession did, however, lead to a
reduction in record trade deficits, which fell from $840 billion annually during
the 200608 period, to $500 billion in 2009,[71][82] as well as to higher personal
savings rates, which jumped from a historic low of 1% in early 2008, to nearly
5% in late 2009. The merchandise trade deficit rose to $670 billion in 2010;
savings rates, however, remained at around 5%. [83]
US real GDP grew by an average of 1.7% from 2000 to the first half of 2014, a
rate around half the historical average up to 2000. [84]
The U.S. public debt was $909 billion in 1980, an amount equal to 33% of
America's gross domestic product (GDP); by 1990, that number had more than
tripled to $3.2 trillion or 56% of GDP.[85] In 2001 the national debt was
$5.7 trillion; however, thedebt-to-GDP ratio remained at 1990 levels.[86] Debt
levels rose quickly in the following decade, and on January 28, 2010, the US
debt ceiling was raised to $14.3 trillion.[87]Based on the 2010 United States
federal budget, total national debt will grow to nearly 100% of GDP, versus a
level of approximately 80% in early 2009.[88] The White House estimates that
the government's tab for servicing the debt will exceed $700 billion a year in
2019,[89] up from $202 billion in 2009.[90]
The U.S. Treasury statistics indicate that, at the end of 2006, non-US citizens
and institutions held 44% of federal debt held by the public. [91] As of 2014,
China, holding $1.26 trillion in treasury bonds, is the largest foreign financier of
the U.S. public debt.[92]
The distribution of household incomes in the United States has become more
unequal during the post-2008 economic recovery, a first for the US but in line
with the trend over the last ten economic recoveries since 1949. [93] Income
inequality in the United Stateshas grown from 2005 to 2012 in more than 2 out
of 3 metropolitan areas.[94] Median household wealth fell 35% in the US, from
$106,591 to $68,839 between 2005 and 2011.[95]
Business culture[edit]

US Real Gross Private Domestic Investment and Real Corporate Profits After Tax
A central feature of the U.S. economy is the economic freedom afforded to the
private sector by allowing the private sector to make the majority of economic
decisions in determining the direction and scale of what the U.S. economy
produces. This is enhanced by relatively low levels of regulation and
government involvement,[96] as well as a court system that generally
protects property rights and enforces contracts. Today, the United States is
home to 29.6 million small businesses, 30% of the world's millionaires, 40% of
the world's billionaires, as well as 139 of the world's 500 largest companies. [97]
[98][99][100]

From its emergence as an independent nation, the United States has

encouraged science and innovation. In the early 20th century, the research
developed through informal cooperation between U.S. industry and academia
grew rapidly and by the late 1930s exceeded the size of that taking place in
Britain (although the quality of U.S. research was not yet on par with British
and German research at the time). After World War II, federal spending on
defense R&D and antitrust policy played a significant role in U.S. innovation. [101]
The United States is rich in mineral resources and fertile farm soil, and it is
fortunate to have a moderate climate. It also has extensive coastlines on both
the Atlantic and Pacific Oceans, as well as on the Gulf of Mexico. Rivers flow
from far within the continent and the Great Lakesfive large, inland lakes
along the U.S. border with Canadaprovide additional shipping access. These
extensive waterways have helped shape the country's economic growth over
the years and helped bind America's 50 individual states together in a single
economic unit.[102]
The number of workers and, more importantly, their productivity help
determine the health of the U.S. economy. Consumer spending in the US rose
to about 62% of GDP in 1960, where it stayed until about 1981, and has since
risen to 71% in 2013.[53] Throughout its history, the United States has
experienced steady growth in the labor force, a phenomenon that is both cause
and effect of almost constant economic expansion. Until shortly after World War
I, most workers were immigrants from Europe, their immediate descendants, or
African Americans who were mostly slaves taken from Africa, or their
descendants.[103]
Demographic shift[edit]

Map of states with percent change in economic growth in 2013.

GDP per capita growth.

United States wealth compared to the rest of the world in the year 2000.
See also: Demographics of the United States
Beginning in the late 20th century, many Latin Americans immigrated, followed
by large numbers of Asians after the removal of nation-origin based
immigration quotas.[104] The promise of high wages brings many highly skilled
workers from around the world to the United States, as well as millions of illegal
immigrants seeking work in the informal economy. Over 13 million people
officially entered the United States during the 1990s alone. [105]
Labor mobility has also been important to the capacity of the American
economy to adapt to changing conditions. When immigrants flooded labor
markets on the East Coast, many workers moved inland, often to farmland
waiting to be tilled. Similarly, economic opportunities in industrial, northern
cities attracted black Americans fromsouthern farms in the first half of the 20th
century, in what was known as the Great Migration.
In the United States, the corporation has emerged as an association of owners,
known as stockholders, who form a business enterprise governed by a complex
set of rules and customs. Brought on by the process of mass production,
corporations, such asGeneral Electric, have been instrumental in shaping the
United States. Through thestock market, American banks and investors have
grown their economy by investing and withdrawing capital from profitable
corporations. Today in the era of globalization, American investors and
corporations have influence all over the world. The American government is
also included among the major investors in the American economy.
Government investments have been directed towards public works of scale
(such as from the Hoover Dam), military-industrial contracts, and the financial
industry.

Real GDP per capita in the United States

GDP[edit]
Historical growth of the US economy from 1961-2015
GDP growth[edit]
Main article: Economic history of the United States 1790-2006 GDP
The development of the United States' GDP according to World Bank:[106]
GDP by industry[edit]
Industries by GDP value added 2011.[107]

GDP value added $ billions % of total

Industry
2011 GDP

Real
1,898 13%
estate, renting, leasing

State and Local

1,336 9%
Government

Finance and insurance 1,159 8%

Health/social care 1,136 8%

Durable manufacturing 910 6%

Retail trade 905 6%

Wholesale trade 845 6%

Non-durable manufacturing 821 6%

Federal Government 658 5%

Information 646 4%

Arts, entertainment 591 4%

Construction 529 4%
Waste services 448 3%

Other services 447 3%

Utilities 297 2%

Mining 290 2%

Corporate management 284 2%

Education services 174 1%

Agriculture 173 1%

Total 13,547 93%

Employment[edit]
Further information: List of largest employers in the United States

The Percentage of the US working age population employed, 19952012.

The United States labor force participation rate from 1948 to 2011 by gender.
Men are represented in light blue, women in pink, and the total in black.
There are approximately 154.4 million employed individuals. The US.
Government is the largest employment sector with 22 million. [108] Small
businesses are the largest employer in the country representing 53% of US
workers.[99] The second largest share of employment belongs to large
businesses that employ 38% of the US workforce. [99]
The private sector employs 91% of working Americans. Government accounts
for 8% of all US workers. Over 99% of all employing organizations in the US are
small businesses.[99] The 30 million small businesses in the U.S. account for
64% of newly created jobs (those created minus those lost). [99] Jobs in small
businesses accounted for 70% of those created in the last decade. [109]
The proportion of Americans employed by small business versus large business
has remained relatively the same year by year as some small businesses
become large businesses and just over half of small businesses survive more
than 5 years.[99]Amongst large businesses, several of the largest companies and
employers in the world are American companies. Amongst them are Walmart,
the largest company and the largest private sector employer in the world,
which employs 2.1 million people world-wide and 1.4 million in the US alone.[110]
[111]

United States mean duration of unemployment 19482010.

There are nearly 30 million small businesses in the US. Minorities such
as Hispanics, African Americans, Asian Americans, and Native Americans (35%
of the country's population),[112] own 4.1 million of the country's businesses.
Minority-owned businesses generate almost $700 billion in revenue and employ
almost 5 million workers in the U.S.[99]
Rates of unemployment by US states in November 2012.[113]
Americans have the highest average employee income among OECD nations.
[41]
The median household income in the US as of 2008 is $52,029. [114] About
284,000 working people in the US have two full-time jobs and 7.6 million have
a part-time job in addition to their full-time employment. [108] Of working
individuals in the US, 12% belong to a labor union; most union members are
government workers.[108] The decline of union membership in the US over the
last several decades parallels the decline of labor's share of the economy. [115]
[116][117]
The World Bank ranks the United States first in the ease of hiring and
firing workers.[118] The United States is the only advanced economy that does
not legally guarantee its workers paid vacation or paid sick days, and is one of
just a few countries in the world without paid family leave as a legal right, with
the others being Papua New Guinea, Suriname and Liberia.[119][120][121] In 2014,
theInternational Trade Union Confederation graded the U.S a 4 out of 5+, its
third lowest score, on the subject of powers and rights granted to labor unions.
[122]

Unemployment[edit]
Main articles: Unemployment in the United States and List of U.S. states by
unemployment rate
As of December 2016, the unemployment rate in the United States was
4.7%[123] or 7.5 million people,[124] while the government's broader U-6
unemployment rate, which includes the part-time underemployed was
9.2%[125] or 10.2 million people. These figures were calculated with a civilian
labor force of approximately 160 million people,[126] relative to a U.S. population
of approximately 324 million people.[127]
In 2009 through 2013, following the Great Recession, the emerging problem
of jobless recoveries resulted in record levels of long-term unemployment with
over 6 million workers looking for work longer than 6 months as of January
2010. This particularly affected older workers.[77] In the year following the
recession's end in June 2009 in the United States, immigrants gained 656,000
jobs, while U.S.-born workers lost more than a million jobs. [128]
In April 2010, the official unemployment rate was 9.9%, but the government's
broaderU-6 unemployment rate was 17.1%.[129] In the period between February
2008 and February 2010, the number of people working part-time for economic
reasons has increased by 4 million to 8.8 million, an 83% increase in part-time
workers during the two-year period.[130] By 2013, although the unemployment
rate had fallen below 8%, the record proportion of long term unemployed and
continued decreasing household income remained indicative of a jobless
recovery.[131]
After being higher in the postwar period, the U.S. unemployment rate fell below
the rising eurozone unemployment rate in the mid-1980s and has remained
significantly lower almost continuously since.[132][133][134] In 1955, 55% of
Americans worked in services, between 30% and 35% in industry, and between
10% and 15% in agriculture. By 1980, over 65% were employed in services,
between 25% and 30% in industry, and less than 5% in agriculture. [135] Male
unemployment continued to be significantly higher than female unemployment
(9.8% vs. 7.5% in 2009). The unemployment among Caucasians continues to
be much lower than African-American unemployment (at 8.5% vs. 15.8% in
2009).[136]
The youth unemployment rate was 18.5% in July 2009, the highest July rate
since 1948.[137] The unemployment rate of young African Americans was 28.2%
in May 2013.[138] Officially, Detroit's unemployment rate is 27%, but Detroit
News suggests that nearly half of this city's working-age population may be
unemployed.[139]
Employment by sector[edit]
See also: Employment by Major Industry Sector in United States

All employees, private industries, by branches

United States employment as estimated in 2012, is divided into 79.7% in the
service sector, 19.2% in the manufacturing sector and 1.1% in the agriculture
sector.[140]
United States non-farm employment by industry sector February 2013. [141]

Industry Employment Percent of total

 thousands February
employment
2013

Retail trade 15,056 10%

Accommodation and food

11,965 8%
services

Professional and technical

8,024 6%
services

Administrative and waste

7,816 5%
service

Local Education 7,758 5%

Ambulatory health care

6,459 4%
services

Local government (excluding

6,270 4%
education)

Finance and insurance 5,869 4%

Construction 5,784 4%

Wholesale trade 5,736 4%

Hospitals 4,829 3%

Transportation and
4,472 3%
warehousing

Non-durable goods
4,471 3%
manufacturing

Educational services 3,320 3%

Nursing and residential care 3,209 2%

Membership associations
2,947 2%
and organizations

Federal government 2,795 2%

Social assistance 2,710 2%

Information 2,697 2%
State government
2,657 2%
(excluding education)

State education 2,361 2%

Management of companies
2,022 1%
and enterprises

Arts, entertainment and

1,988 1%
recreation

Real estate, rental and

1,974 1%
leasing

Personal and laundry

1,330 1%
services

Repair and maintenance 1,203 <1%

Mining and logging 869 <1%

Utilities 558 <1%

Durable goods
349 <1%
manufacturing

Research, development, and entrepreneurship[edit]

See also: Technological and industrial history of the United States

Tennessee in 1897. The US was a leader in the adoption of electric lighting

The United States has been a leader in technological innovation since the late
19th century and scientific research since the mid 20th century. In
1876, Alexander Graham Bell was awarded the first U.S. patent for the
telephone. Thomas Edison's laboratory developed the phonograph, the
first long-lasting light bulb, and the first viable movie camera. Nikola
Tesla pioneered the AC induction motorand high frequency power transmission
used in radio. In the early 20th century, the automobile companies of Ransom
E. Olds and Henry Ford popularized the assembly line. The Wright brothers, in
1903, made the first sustained and controlled heavier-than-air powered flight.
[142]

Steve Jobs and Bill Gates are two of the best-known American entrepreneurs.
American society highly emphasizes entrepreneurship and
business. Entrepreneurship is the act of being an entrepreneur, which can be
defined as "one who undertakes innovations, finance and business acumen in
an effort to transform innovations into economic goods". This may result in new
organizations or may be part of revitalizing mature organizations in response to
a perceived opportunity.[143]
The most obvious form of entrepreneurship refers to the process and
engagement of starting new businesses (referred as Startup Company);
however, in recent years, the term has been extended to include social and
political forms of entrepreneurial activity. When entrepreneurship is describing
activities within a firm or large organization it is referred to as intra-preneurship
and may include corporate venturing, when large entities spin-off
organizations.[143]
According to Paul Reynolds, entrepreneurship scholar and creator of the Global
Entrepreneurship Monitor, "by the time they reach their retirement years, half
of all working men in the United States probably have a period of self-
employment of one or more years; one in four may have engaged in self-
employment for six or more years. Participating in a new business creation is a
common activity among U.S. workers over the course of their careers." [144] And
in recent years, business creation has been documented by scholars such
as David Audretsch to be a major driver of economic growth in both the United
States and Western Europe.
Venture capital, as an industry, originated in the United States, which it still
dominates.[145] According to the National Venture Capital Association 11% of
private sector jobs come from venture capital backed companies and venture
capital backed revenue accounts for 21% of US GDP. [146]
Some new American businesses raise investments from angel
investors (venture capitalists). In 2010 healthcare/medical accounted for the
largest share of angel investments, with 30% of total angel investments (vs.
17% in 2009), followed by software (16% vs. 19% in 2007), biotech (15% vs.
8% in 2009), industrial/energy (8% vs. 17% in 2009), retail (5% vs. 8% in 2009)
and IT services (5%).[147] [clarification needed]
Americans are "venturesome consumers" who are unusually willing to try new
products of all sorts, and to pester manufacturers to improve their products. [148]
Income and wealth[edit]

Year-on-year change in total net worth of US households and nonprofit

organizations 19462007, unadjusted for inflation or population change.

Net worth in the United States, 2006

2015[149]

Year Wealth (billions in USD)

2006 66,095

2007 66,577

2008 56,214

2009 58,094

2010 62,316

2011 63,545

2012 69,598

2013 79,383

2014 84,201

2015 87,250

Main articles: Income in the United States and Wealth in the United States
See also: Personal income in the United States, Household income in the United
States, Income inequality in the United States, Affluence in the United States,
andUnited States counties by per capita income
 This section may lend undue weight to certain ideas,
incidents, or controversies. Please help to create a more
balanced presentation. Discuss and resolve this issue before
removing this message. (August 2014)

As of Q4 2013, total household net worth in the United States is $80.664

trillion, an increase of $9.8 trillion from 2012. Employee compensation amounts
to $8.969 trillion, while gross private investment totals $2.781 trillion. [149] The
mean net worth of US adults increased to $301,140 in 2013, with the majority
being held in financial assets, due to higher activity by shareholders and more
private investment.[150] Includinghuman capital such as skills, the United
Nations estimated the total wealth of the United States in 2008 to be $118
trillion.[151]
Americans have the highest average household income among OECD nations,
and in 2010 had the fourth highest median household income, down from
second highest in 2007.[40][41] While inflation-adjusted household income had
been increasing almost every year from 1945 to 2007, it has since been flat
and even decreased recently.[152]U.S. median household income fell from
$51,144 in 2010 to $50,502 in 2011.[153]According to one analysis middle class
incomes in the United States fell into a tie with those in Canada in 2010, and
may have fallen behind by 2014, while several other advanced economies have
closed the gap in recent years.[154]
The top 1 percent of income-earners accounted for 95 percent of the income
gains from 2009 to 2012,[155] while their share of total income has more than
doubled from 9 percent in 1976 to 20 percent in 2011. [156] According to a 2014
OECD report, 80% of total income growth went to the top 10% from 1975 to
2007.[157] The top 10% wealthiest possess 80% of all financial assets. [158] Wealth
inequality in the U.S. is greater than in most developed countries other
than Switzerland and Denmark.[159] Inherited wealth may help explain why
many Americans who have become rich may have had a "substantial head
start".[160][161] In September 2012, according to the Institute for Policy Studies,
"over 60 percent" of the Forbes richest 400 Americans "grew up in substantial
privilege".[162]
A number of economists and others have expressed growing concern
about income inequality, calling it "deeply worrying",[163] unjust,[164] a danger to
democracy/social stability,[165][166][167] or a sign of national decline.[168] Yale
professor Robert Shiller has said, "The most important problem that we are
facing now today, I think, is rising inequality in the United States and elsewhere
in the world."[169] Thomas Piketty of the Paris School of Economics argues that
the post-1980 increase in inequality played a role in the 2008 crisis by
contributing to the nation's financial instability. [170] In 2016, the economists
Peter H. Lindert and Jeffrey G. Williamson claimed that inequality is the highest
it has been since the nation's founding. [171]
Others disagree, saying there is a lack of evidence that the success of some
harms others, and that the inequality issue is a political distraction from what
they consider real problems like chronic unemployment and sluggish growth.
[172][173]
George Mason Universityeconomics professor Tyler Cowen has called
inequality a "red herring",[174] saying that factors driving its increase within a
nation can simultaneously be driving its reduction globally, and arguing that
redistributive policies intended to reduce inequality can do more harm than
good regarding the real problem of stagnant wages. [175] Robert Lucas Jr. has
argued that the salient problem American living standards face is a
government that has grown too much, and that recent policy shifts in the
direction of European style taxation, welfare spending, and regulation may be
indefinitely putting the US on a significantly lower, European level income
trajectory.[176][177] Some researchers have disputed the accuracy of the
underlying data regarding claims about inequality trends, [178][179] and
economists Michael Bordo and Christopher M. Meissner have argued that
inequality cannot be blamed for the 2008 financial crisis. [180]
About 30% of the entire world's millionaire population resides in the United
States (as of 2009).[181] The Economist Intelligence Unitestimated in 2008 that
there were 16,600,000 millionaires in the U.S. [182] Furthermore, 34% of the
world's billionaires are American (in 2011).[98][183]

Productivity and real median family income growth, 19472009. There has
been a widening gap between productivity and median incomes since the
1970s.[184]The primary cause for the gap between productivity and income
growth is the decline in per capita hours worked. [185] Other causes include the
rise in non-cash benefits as a share of worker compensation (which aren't
counted in CPS income data), immigrants entering the labor force, statistical
distortions including the use of different inflation adjusters by the BLS and CPS,
productivity gains being skewed toward less labor-intensive sectors, income
shifting from labor to capital, a skill gap-driven wage disparity, productivity
being falsely inflated by hidden technology-driven depreciation increases and
import price measurement problems, and/or a natural period of adjustment
following an income surge during aberrational postwar circumstances. [172][186][187]
[188][189]

According to a report by the Congressional Research Service, decreased

progressiveness in capital gains taxes was the largest contributor to the
increase in overall income inequality in the US from 1996 to 2006. [190] According
to the Federal Reserve Board, in 2010 single Black and Hispanic women ages
1864 had a median wealth of $100 and $120 respectively, excluding vehicles,
while the median for single white women was $41,500. [191]
As of 2010 The U.S. had the fourth widest income distribution
among OECD nations, behind Turkey, Mexico and Chile.[192][193][194] The Brookings
Institution said in March 2013 that income inequality was increasing and
becoming permanent, sharply reducingsocial mobility in the US.
[195]
The OECD ranks the US 10th in social mobility, behind theNordic
countries, Australia, Canada, Germany, Spain, and France.[196] Of the major
developed nations, only Italy and Great Britain have lower mobility.[197] This has
been partly attributed to the depth of American poverty, which leaves poor
children economically disadvantaged,[198] though others have observed that a
relative rise in the U.S. is mathematically harder due to its higher and more
widely distributed income range than in nations with artificial income
compression, even if one enjoys more absolute mobility in the U.S., and have
questioned how meaningful such international comparisons are. [199]
Home ownership[edit]
Further information: Homeownership in the United States
The average home in the United States has more than 700 square feet per
person, which is 50%100% more than the average in other high-income
countries. Similarly, ownership rates of gadgets and amenities are relatively
high compared to other countries.[200][201][202]
Between June 2007 and November 2008 the global recession led to falling
asset prices around the world. Assets owned by Americans lost about a quarter
of their value.[203] Since peaking in the second quarter of 2007, household
wealth is down $14 trillion.[204] The Fed also said that at the end of 2008, the
debt owed by nonfinancial sectors was $33.5 trillion, including household debt
valued at $13.8 trillion.[205]
It was reported by Pew Research Center in 2016 that, for the first time in 130
years, Americans aged 18 to 34 are more likely to live with their parents than in
any other housing situation.[206] Home ownership is largely out of reach for the
majority of young adults.[207]
Profits and wages[edit]
Real compensation per hour in the US (19472013).
In March 2013, as the stock market's Dow Jones Industrial Average set record
highs,household and personal income were both down sharply from their 2007
peaks. In 1970, wages represented more than 51% of the U.S. GDP and profits
were less than 5%. But by 2013, wages had fallen to 44% of the economy,
while profits had more than doubled to 11%. [208] Inflation-adjusted ("real") per-
capita disposable personal incomerose steadily in the U.S. from 1945 to 2008,
but has since remained generally level.[209][210]
In 2005, median personal income for those over the age of 18 ranged from
$3,317 for an unemployed, married Asian American female[211] to $55,935 for a
full-time, year-round employed Asian American male. [212] According to the US
Census men tended to have higher income than women while Asians
and Whites earned more than African Americans and Hispanics. The overall
median personal income for all individuals over the age of 18 was
$24,062[213] ($32,140 for those age 25 or above) in the year 2005. [214]
The overall median income for all 155 million persons over the age of 15 who
worked with earnings in 2005 was $28,567.[215] As a reference point, the
minimum wage rate in 2009 was $7.25 per hour or $15,080 for the 2080 hours
in a typical work year. The minimum wage is a little more than the poverty
level for a single person unit and about 50% of the poverty level for a family of
four.
Poverty[edit]
Main article: Poverty in the United States
The gap in income between rich and poor is greater in the United States than in
any other developed country.[216] Starting in the 1980srelative poverty rates
have consistently exceeded those of other wealthy nations, though analyses
using a common data set for comparisons tend to find that the U.S. has a lower
absolute poverty rate by market income than most other wealthy nations.
[194]
Extreme poverty in the United States, 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. [217] In 2013, child
poverty reached record high levels, with 16.7 million children living in food
insecure households, about 35% more than 2007 levels.[218] As of 2015, 44
percent of children in the United States live with low-income families. [219]
In 2014, 14.8 percent of the U.S. population lives in poverty.[220] According to a
survey by the Associated Press, four out of five U.S. adults struggle with
joblessness, near-poverty or reliance on welfare for at least parts of their lives.
[221]
Feeding America reported in 2014 that 49 million Americans are "food
insecure."[222] In June 2016, The IMF warned the United States that its high
poverty rate needs to be tackled urgently.[223]
The population in extreme-poverty neighborhoods rose by one-third from 2000
to 2009.[224] People living in such neighborhoods tend to suffer from inadequate
access to quality education; higher crime rates; higher rates of physical and
psychological ailment; limited access to credit and wealth accumulation; higher
prices for goods and services; and constrained access to job opportunities.
[224]
As of 2013, 44% of America's poor are considered to be in "deep poverty,"
with an income 50% or more below the government's official poverty line. [225]
There were about 643,000 sheltered and unsheltered homeless persons in the
U.S. on a single night in January 2009. Almost two-thirds 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. About 1.56 million people, or about 0.5% of the U.S.
population, used an emergency shelter or a transitional housing program
between October 1, 2008 and September 30, 2009. [226] Around 44% of
homeless people are employed.[227]
The United States has one of the least extensive social safety nets in the
developed world, reducing both relative poverty and absolute poverty
by considerably less than the mean for wealthy nations.[228][229][230][231][232] The
living standards for the poor in the United States are also among the highest in
the world.[194][not in citation given] However, over the last three decades the poor in
America have beenincarcerated at a much higher rate than their counterparts
in other developed nations, with penal confinement being "commonplace for
poor men of working age."[233] Some scholars contend that the shift
to neoliberal social and economic policies starting in the late 1970s has
expanded the penal state, retrenched the social welfare state, deregulated the
economy and criminalized poverty, ultimately "transforming what it means to
be poor in America."[234][235][236]
Financial position[edit]
Main article: Financial position of the United States

Assets of the United States as a fraction of GDP19602008

Liabilities of the United States as a fraction of GDP19602009
The overall financial position of the United States as of 2014 includes
$269.6 trillion of assets owned by households, businesses, and governments
within its borders, representing more than 15.7 times the annual gross
domestic product of the United States. Debts owed during this same period
amounted to $145.8 trillion, about 8.5 times the annual gross domestic
product.[237][238]
Since 2010, the U.S. Treasury has been obtaining negative real interest rates on
government debt.[239] Such low rates, outpaced by the inflation rate, occur
when the market believes that there are no alternatives with sufficiently low
risk, or when popular institutional investments such as insurance
companies, pensions, or bond, money market, and balanced mutual funds are
required or choose to invest sufficiently large sums in Treasury securities to
hedge against risk.[240][241] Lawrence Summers and others state that at such low
rates, government debt borrowing saves taxpayer money, and improves
creditworthiness.[242]
In the late 1940s through the early 1970s, the US and UK both reduced their
debt burden by about 30% to 40% of GDP per decade by taking advantage of
negative real interest rates, but there is no guarantee that government debt
rates will continue to stay so low. [240][243] In January 2012, the U.S. Treasury
Borrowing Advisory Committee of the Securities Industry and Financial Markets
Association unanimously recommended that government debt be allowed to
auction even lower, at negative absolute interest rates. [244]
Now that the connection between public and private debt is better-known, [245]
[246]
U.S. combined debts are worrisome. See Causes of the Great Depression:
Debt Deflation.
Composition of economic sectors[edit]
Main article: Economy of the United States by sector
See also: Technological and industrial history of the United
States and Agriculture in the United States
A wheat harvest in Idaho
The United States is the world's second largest manufacturer, with a 2013
industrial output of US$2.4 trillion. Its manufacturing output is greater than of
Germany, France, India, and Brazil combined. [247] Its main industries include
petroleum, steel, automobiles, construction machinery, aerospace, agricultural
machinery, telecommunications, chemicals, electronics, food processing,
consumer goods, lumber, and mining.
The US leads the world in airplane manufacturing,[248] which represents a large
portion of US industrial output. American companies such
as Boeing, Cessna (see: Textron), Lockheed Martin(see: Skunk Works),
and General Dynamics produce a majority of the world's civilian and military
aircraft in factories across the United States.
The manufacturing sector of the U.S. economy has experienced substantial job
losses over the past several years. [249][250] In January 2004, the number of such
jobs stood at 14.3 million, down by 3.0 million jobs, or 17.5 percent, since July
2000 and about 5.2 million since the historical peak in 1979. Employment in
manufacturing was its lowest since July 1950.[251] The number of steel workers
fell from 500,000 in 1980 to 224,000 in 2000.[252]

Statistics released by the US Census Bureau showed that, in 2008, the number
of business 'deaths' began overtaking the number of business 'births' and that
the trend continued at least through 2012. [253]
The U.S. produces approximately 18% of the world's manufacturing output, a
share that has declined as other nations developed competitive manufacturing
industries.[254] The job loss during this continual volume growth is the result of
multiple factors including increased productivity, trade, and secular economic
trends.[255] In addition, growth in telecommunications, pharmaceuticals, aircraft,
heavy machinery and other industries along with declines in low end, low skill
industries such as clothing, toys, and other simple manufacturing have resulted
in some U.S. jobs being more highly skilled and better paying. There has been
much debate within the United States on whether the decline in manufacturing
jobs are related to American unions, lower foreign wages, or both. [256][257][258]
Although agriculture comprises less than two percent of the economy, the
United States is a net exporter of food. With vast tracts of temperate arable
land, technologically advanced agribusiness, and agricultural subsidies, the
United States controls almost half of world grain exports.[259] Products
include wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry,
dairy products; forest products; fish.
Notable companies and markets[edit]
See also: Forbes 500 and Fortune 500

A typical Walmart discount department store (location: Laredo, Texas).

In 2011, the 20 largest U.S.-based companies by
revenue were Walmart, ExxonMobil, Chevron,ConocoPhillips, Fannie
Mae, General Electric, Berkshire Hathaway, General Motors, Ford Motor
Company, Hewlett-Packard, AT&T, Cargill, McKesson Corporation, Bank of
America, Federal Home Loan Mortgage Corporation, Apple
Inc., Verizon, JPMorgan Chase, and Cardinal Health.
In 2013, eight of the world's ten largest companies by market
capitalization were American: Apple Inc., Exxon Mobil, Berkshire
Hathaway, Walmart, General Electric, Microsoft, IBM, and Chevron Corporation.
[260]

According to Fortune Global 500 2011, the ten largest U.S.

employers were Walmart, U.S. Postal Service, IBM, UPS, McDonald's, Target
Corporation, Kroger, The Home Depot, General Electric, and Sears Holdings.[261]
Apple, Google, IBM, McDonald's, and Microsoft are the world's five most
valuable brands in an index published by Millward Brown. [262]
A 2012 Deloitte report published in STORES magazine indicated that of the
world's top 250 largest retailers by retail sales revenue in fiscal year 2010, 32%
of those retailers were based in the United States, and those 32% accounted
for 41% of the total retail sales revenue of the top 250. [263] Amazon.com is the
world's largest online retailer.[264][265][266]
Half of the world's 20 largest semiconductor manufacturers by sales were
American-origin in 2011.[267]
Most of the world's largest charitable foundations were founded by Americans.
American producers create nearly all of the world's highest-grossing films.
Many of the world's best-selling music artists are based in the United
States. U.S. tourism sector welcomes approximately 60 million international
visitors every year. In a recent study by Salam Standard, it has been reported
that the United States is the biggest beneficiary of global Muslim tourism
spend, enjoying 24 per cent share of the totalMuslim travel spend worldwide or
almost $35 billion.[268] The Wall Street Journal is the most circulated newspaper
in the United States,[269]reflecting strong business, finance, market and
entrepreneurial culture in the US economy.
Forbes top 10 U.S. corporations by revenue[edit]
Further information: List of largest companies by revenue
Top 10 U.S. corporations by revenue in 2013 [270]

Rev Mark
Pro
enu et
fit $ Asset Debt Empl
e$ Headq cap
Ra Corpor mill s ratio oyee Indus
milli uarter 4/1/1
nk ation ions 12/31/ 12/31/ s try
ons s 3$
201 12[271] 12[271] 2012
201 billio
2[270]
2[270] ns[271]

Exxon 454, 41,0 Irving, 99,10 Energ

1 334 50% 403
Mobil 926 60 TX 0 y

Wal- Benton
446, 15,6 2,200
2 Mart 203 62% ville, 246 Retail
950 99 ,000
Stores AR

San
245, 26,8 61,18 Energ
3 Chevron 233 41% Ramon, 230
621 95 9 y
CA

Conoco 245, 12,4 Housto 29,80 Energ

4 117 59% 73
Phillips 621 36 n, TX 0 y

General 150, 9,19 Detroit, 202,0

5 149 76% 38 Auto
Motors 476 0 MI 00

General 147, 14,1 Fairfield 301,0 Diver

6 685 82% 240
Electric 616 51 , CT 00 sified

7 Berkshir 143, 10,2 427 56% Omaha, 288,5 259 Diver

 e
Hathaw 688 54 NE 00 sified
ay

Washin
Fannie 137, 16 Finan
8 3,221 99% gton 7,300 1
Mae 451 ,855 ce
D.C.

Ford 136, 20,2 Dearbo 164,0

9 190 91% 50 Auto
Motor 264 13 rn, MI 00

Hewlett
127, 7,07 Palo 350,6 Comp
10 - 108 80% 43
245 4 Alto, CA 10 uters
Packard

Energy, transportation, and telecommunications[edit]

Main articles: Energy in the United States, Transportation in the United States,
and Internet in the United States

The Interstate Highway System extends 46,876 miles (75,440 km).[272]

The Port of Houston, one of the largest ports in the United States.
The U.S. economy is heavily dependent on road transport for the movement of
people and goods. Personal transportation is dominated by automobiles, which
operate on a network of 4 million miles of public roads, [273] including one of the
world's longest highway systems at 57,000 miles.[274] The world's second
largest automobile market,[275] the United States has the highest rate of per-
capita vehicle ownership in the world, with 765 vehicles per 1,000 Americans.
[276]
About 40% of personal vehiclesare vans, SUVs, or light trucks.[277]
Mass transit accounts for 9% of total U.S. work trips.[278][279] Transport of goods
by railis extensive, though relatively low numbers of passengers
(approximately 31 million annually) use intercity rail to travel, partly because of
the low population density throughout much of the U.S. interior. [280]
[281]
However, ridership on Amtrak, the national intercity passenger rail system,
grew by almost 37% between 2000 and 2010.[282] Also,light rail
development has increased in recent years.[283] The state of California is
currently constructing the nation's first high-speed rail system.
The civil airline industry is entirely privately owned and has been
largely deregulated since 1978, while most major airports are publicly owned.
[284]
The three largest airlines in the world by passengers carried are U.S.-
based; American Airlines is number one after its 2013 acquisition byUS
Airways.[285] Of the world's 30 busiest passenger airports, 12 are in the United
States, including the busiest, HartsfieldJackson Atlanta International Airport.
[286]

The United States is the second largest energy consumer in total use.[287] The
U.S. ranks seventh in energy consumption per-capita after Canada and a
number of other countries.[288][289] The majority of this energy is derived
from fossil fuels: in 2005, it was estimated that 40% of the nation's energy
came from petroleum, 23% from coal, and 23% from natural gas. Nuclear
power supplied 8.4% and renewable energy supplied 6.8%, which was mainly
from hydroelectric dams although other renewables are included. [290]
American dependence on oil imports grew from 24% in 1970 to 65% by the end
of 2005.[291] Transportation has the highest consumption rates, accounting for
approximately 69% of the oil used in the United States in 2006, [292] and 55% of
oil use worldwide as documented in theHirsch report.
In 2013, the United States imported 2,808 million barrels of crude oil,
compared to 3,377 million barrels in 2010.[293] While the U.S. is the largest
importer of fuel, the Wall Street Journal reported in 2011 that the country was
about to become a net fuel exporter for the first time in 62 years. The paper
reported expectations that this would continue until 2020. [294] In fact, petroleum
was the major export from the country in 2011.[295]
Internet was developed in the U.S. and the country hosts many of the world's
largest hubs.[296]
Finance[edit]
The New York Stock Exchange is the largest stock exchange in the world.
Main articles: Banking in the United States and Insurance in the United States
Further information: List of largest banks
Measured by value of its listed companies' securities, the New York Stock
Exchange is more than three times larger than any other stock exchange in the
world.[297] As of October 2008, the combined capitalization of all domestic NYSE
listed companies was US$10.1 trillion.[298] NASDAQ is another American stock
exchange and the world's 3rd largest exchange after the New York Stock
Exchange and Japan's Tokyo Stock Exchange. However NASDAQ's trade value is
larger than Japan's TSE.[297] NASDAQ is the largest electronic screen-
based equity securities trading market in the U.S. With approximately 3,800
companies and corporations, it has more trading volume per hour than any
other stock exchange.[299]
Because of the influential role that the US stock market plays in international
finance, a New York University study in late 2014 interprets that in the short
run, shocks that affect the willingness to bear risk independently of
macroeconomic fundamentals explain most of the variation in the US stock
market. In the long run, the US stock market is profoundly affected by shocks
that reallocate the rewards of a given level of production between workers and
shareholders. Productivity shocks however play a small role in historical stock
market fluctuations at all horizons in the US stock market. [300]
The U.S. finance industry comprised only 10% of total non-farm business profits
in 1947, but it grew to 50% by 2010. Over the same period, finance industry
income as a proportion of GDP rose from 2.5% to 7.5%, and the finance
industry's proportion of all corporate income rose from 10% to 20%. The mean
earnings per employee hour in finance relative to all other sectors has closely
mirrored the share of total U.S. income earned by the top 1% income earners
since 1930. The mean salary in New York City's finance industry rose from
$80,000 in 1981 to $360,000 in 2011, while average New York City salaries
rose from $40,000 to $70,000. In 1988, there were about 12,500 U.S. banks
with less than $300 million in deposits, and about 900 with more deposits, but
by 2012, there were only 4,200 banks with less than $300 million in deposits in
the U.S., and over 1,800 with more.
Top ten U.S. banks by assets

Assets $ Profit $
Ran Headquarter Employe
Bank millions millions
k s es
12/31/12 2012

JP Morgan New York,

1 2,359,000 21,280 258,965
Chase[301] NY

Bank of Charlotte,
2 2,209,000 4,188 276,600
America[301] NC

New York,
3 Citigroup[302] 1,865,000 7,415 259,000
NY

San
4 Wells Fargo[301] 1,422,000 18,890 Francisco, 265,000
CA

Goldman New York,

5 923,220 7,475 57,726
Sachs[303] NY

Morgan New York,

6 749,890 117[305] 57,726
Stanley[304] NY

Minneapolis,
7 U.S. Bancorp[306] 353,000 5,600 62,529
MN

Bank of NY New York,

8 359,301 2,569 48,700
Mellon[302] NY

HSBC North
New York,
9 American 318,801 N/A 43,000
NY
Holdings[302]

Capital One Tysons

10 286,602 3,517 35,593
Financial[302] Corner, VA

A 2012 International Monetary Fund study concluded that the US financial

sector has grown so large that it is slowing economic growth. New York
University economist Thomas Philippon supported those findings, estimating
that the US spends $300 billion too much on financial services per year, and
that the sector needs to shrink by 20%. Harvard University and University of
Chicago economists agreed, calculating in 2014 that workers in research and
development add $5 to the GDP for each dollar they earn, but finance industry
workers cause the GDP to shrink by $0.60 for every dollar they are paid. [307] A
study by the Bank for International Settlements reached similar conclusions,
saying the finance industry impedes economic growth and research and
development based industries.[308]
Health care[edit]
Main article: Health care in the United States

The neutrality of this section is disputed. Relevant discussion may

be found on the talk page. Please do not remove this message
until conditions to do so are met. (August 2015) (Learn how and
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Life expectancy compared to healthcare spending from 1970 to 2008, in the US

and the next 19 most wealthy countries by total GDP. [309]
Many distinct organizations provide health care in the US. Facilities are largely
owned and operated by private sector businesses. Health insurance for public
sectoremployees is primarily provided by the government. 6065% of
healthcare provision and spending comes from programs such
as Medicare, Medicaid, Tricare, theChildren's Health Insurance Program, and
the Veterans Health Administration. Most of the population under 65 is insured
by their or a family member's employer, some buy health insurance on their
own, and the remainder are uninsured. On March 23, 2010, the Patient
Protection and Affordable Care Act (PPACA) became law, providing for major
changes in health insurance.[310] Of 17 high-income countries studied by
theNational Institutes of Health in 2013, the United States ranked at or near the
top in obesity rate, frequency of automobile use and accidents,
homicides, infant mortalityrate, incidence of heart and lung disease, sexually
transmitted infections, adolescent pregnancies, recreational drug or alcohol
deaths, injuries, and rates of disability. Together, such lifestyle and societal
factors place the U.S. at the bottom of that list for life expectancy. On average,
a U.S. male can be expected to live almost four fewer years than those in the
top-ranked country, though Americans who reach age 75 live longer than those
who reach that age in peer nations. [311]
A comprehensive 2007 study by European doctors found the five-
year cancer survival rate was significantly higher in the U.S. than in all 21
European nations studied, 66.3% for men versus the European mean of 47.3%
and 62.9% versus 52.8% for women.[312][313] Americans undergo cancer
screenings at significantly higher rates than people in other developed
countries, and access MRI and CT scans at the highest rate of any OECD nation.
[314]
People in the U.S. diagnosed with high cholesterol or hypertension access
pharmaceutical treatments at higher rates than those diagnosed in other
developed nations, and are more likely to successfully control the conditions.
[315][316]
Diabeticsare more likely to receive treatment and meet treatment
targets in the U.S. than in Canada, England, or Scotland. [317][318]
The U.S. lags in overall healthcare performance but is a global leader in
medical innovation. America solely developed or contributed significantly to 9
of the top 10 most important medical innovations since 1975 as ranked by a
2001 poll of physicians, while the EU and Switzerland together contributed to
five. Since 1966, Americans have received more Nobel Prizes in Medicine than
the rest of the world combined. From 1989 to 2002, four times more money
was invested in private biotechnology companies in America than in Europe. [319]
[320]

According to the World Health Organization (WHO), the United States spent
more on health care per capita ($7,146), and more on health care as
percentage of its GDP (15.2%), than any other nation in 2008. In 2010, 49.9
million residents or 16.3% of the population reported not carrying health
insurance to the U.S. Census. Of that number 18.3 million had annual
household incomes at or greater than $50,000, 9.5 million had household
incomes of $75,000 or higher, 16.2 million had household incomes of less than
$25,000, 27.2 million were under age 35, and 9.7 million were non-citizens.
[321]
The Census has stated that its surveys likely underreport insurance
coverage. For example, a quality control analysis revealed that 16.9% of those
enrolled in Medicaid incorrectly reported being uninsured. [321][322] Analyses have
also shown that millions of uninsured are eligible for coverage through
programs like Medicaid but have not signed up or have let their enrollments
expire.[323] According to Physicians for a National Health Program, this lack of
insurance causes roughly 48,000 unnecessary deaths per year. [324] The group's
methodology has been criticized by John C. Goodman for not looking at cause
of death or tracking insurance status changes over time, including the time of
death.[325] A 2009 study by former Clinton policy adviser Richard Kronick found
no increased mortality from being uninsured after certain risk factors were
controlled for.[326]
The high cost of health care in the United States is attributed variously to
technological advance, administration costs, drug pricing, suppliers charging
more for medical equipment, the receiving of more medical care than people in
other countries, the high wages of doctors, government regulations, the impact
of lawsuits, and third party payment systems insulating consumers from the full
cost of treatments.[327][328][329] The lowest prices for pharmaceuticals, medical
devices, and payments to physicians are in government plans. Americans tend
to receive more medical care than people do in other countries, which is a
notable contributor to higher costs. In the United States, a person is more likely
to receive open heart surgery after a heart attack than in other countries.
Medicaid pays less than Medicare for many prescription drugs due to the fact
Medicaid discounts are set by law, whereas Medicare prices are negotiated by
private insurers and drug companies. [328][330] Government plans often pay less
than overhead, resulting in healthcare providers shifting the cost to the
privately insured through higher prices. [331][332]
International trade[edit]
Tree maps

United States Imports Treemap by Product (2014) from MIT Atlas of Economic
Complexity

United States Exports Treemap by Product (2014) from MIT Atlas of Economic
Complexity
Main article: Foreign trade of the United States
See also: List of exports of the United States, List of the largest trading partners
of the United States, List of imports of the United States, and Comparison of
imports vs exports of the United States

Protectionist measures since 2008 by country. [333][334]

The United States is the world's second largest trading nation. [335] There is a
large amount of U.S. dollars in circulation all around the planet; about 60% of
funds used in international trade are U.S. dollars. The dollar is also used as the
standard unit of currency in international markets for commodities such as gold
and petroleum.[336]
In 2013, U.S. exports goods and services amounted to $2.27 trillion and
imports goods and services amounted to $2.74 trillion, with a trade deficit was
$450 billion.[74] The deficit on petroleum products was $232 billion. The trade
deficit with China was $318 billion in 2013,[337] a new record and up from
$304 million in 1983.[338]

Imports vs exports & net imports

The United States had a $231 billion surplus on trade in services, and
$703 billion deficit on trade in goods in 2013. [74] China has expanded its foreign
exchange reserves, which included $1.6 trillion of U.S. securities as of 2013.
[339]
In 2010, the ten largest trading partners of the U.S. were Canada, China,
Mexico, Japan, Germany, the United Kingdom, South Korea, France, Taiwan, and
Brazil.[340]
According to the KOF Index of Globalization and the Globalization Index by A.T.
Kearney/Foreign Policy Magazine, the U.S. has a relatively high degree
of globalization. U.S. workers send a third of allremittances in the world.[341]
 Balance of trade in the United States in 2015 ($Billions)[342][343]

Difference
Product Imports Exports
+/-

Electronic equipment $332.9 $169.8 -$163.1

Machines, engines, pumps $329.3 $205.8 -$123.5

Vehicles $283.8 $127.1 -$146.7

Fuel $201.2 $106.1 -$95.1

Pharmaceuticals $86.1 $47.3 -$38.8

Medical, technical equipment $78.3 $83.4 +$5.1

Furniture, lighting, signs $61.2 $11.5 -$49.7

Gems, precious metals $60.2 $58.7 -$1.5

Organic chemicals $52.1 $38.8 -$13.3

Plastics $50.2 $60.3 +$10.1

Aircraft/Spacecraft $35.3 $131.1 +$95.8

$2.309 $1.51
Total of all trade -$799
Trillion Trillion
[344]
Imports/ Exports/ Trade Deficits of the United States in 2014 ($Millions)
[345]

Country Exports Imports Trade Deficit

China 123,676 446,754 343,078

European Union 276,142 418,754 142,059

Germany 49,363 123,260 73,897

Japan 66,827 134,004 67,117

Mexico 240,249 294,074 53,825

Canada 312,421 347,798 35,377

Saudi Arabia 18,705 47,041 28,336

Ireland 7,806 33,956 26,150

 Italy 16,968 42,115 25,147

South Korea 44,471 69,518 25,047

India 21,608 45,244 23,636

Malaysia 13,068 30,420 17,352

France 31,301 46,874 15,573

Thailand 11,810 27,123 15,313

Taiwan 26,670 40,581 13,911

Switzerland 22,176 31,191 9,015

Israel 15,083 22,962 7,879

United Kingdom 53,823 54,392 569

Currency and central bank[edit]

Main articles: United States dollar and Federal Reserve System

United States historical inflation rate, 16662004.

The United States dollar is the unit of currency of the United States. The U.S.
dollar is the currency most used in international transactions. [346] Several
countries use it as their official currency, and in many others it is the de facto
currency.[347]
The federal government attempts to use both monetary policy (control of the
money supply through mechanisms such as changes in interest rates) andfiscal
policy (taxes and spending) to maintain low inflation, high economic growth,
and low unemployment. A private central bank, known as the Federal Reserve,
was formed in 1913 to supposedly provide a stable currency andmonetary
policy. The U.S. dollar has been regarded as one of the more stable currencies
in the world and many nations back their own currency with U.S. dollar
reserves.[30][32]
The U.S. dollar has maintained its position as the world's primary reserve
currency, although it is gradually being challenged in that role. [348]Almost two-
thirds of currency reserves held around the world are held in US dollars,
compared to around 25% for the next most popular currency, the Euro.
[349]
Rising US national debt and quantitative easing has caused some to predict
that the US Dollar will lose its status as the world's reserve currency, however
these predictions have not come to fruition.[350]
Law and government[edit]

Revenue and Expense as % GDP.

Deficit and debt increases 20012016.

The United States ranked 4th in the Ease of Doing Business Index in 2012, 18th
in theEconomic Freedom of the World index by the Fraser Institute in 2012,
10th in the Index of Economic Freedom by the Wall Street Journal and Heritage
Foundation in 2012, 15th in the 2014 Global Enabling Trade Report,[351] and 3rd
on the Global Competitiveness Report.[352]
According to the 2014 Index of Economic Freedom, released by the Wall Street
Journaland Heritage Foundation, the US has dropped out of the top 10 most
economically free countries. The US has been on a steady 7 year economic
freedom decline and is the only country to do so. [353] The index measures each
nation's commitment to free enterprise on a scale of 0 to 100. Countries losing
economic freedom and receiving low index scores are at risk of economic
stagnation, high unemployment rates, and diminishing social conditions. [354]
[355]
The 2014 Index of Economic Freedom gave the United States a score of
75.5 and is listed as the 12th freest economy in world. It dropped two rankings
and its score is half a point lower than in 2013. [353]
Regulations[edit]
The U.S. federal government regulates private enterprise in numerous ways.
Regulation falls into two general categories.
Some efforts seek, either directly or indirectly, to control prices. Traditionally,
the government has sought to create state-regulated monopolies such as
electric utilities from while allowing prices in the level that would ensure them
normal profits. At times, the government has extended economic control to
other kinds of industries as well. In the years following the Great Depression, it
devised a complex system to stabilize prices for agricultural goods, which tend
to fluctuate wildly in response to rapidly changing supply and demand. A
number of other industriestrucking and, later, airlinessuccessfully sought
regulation themselves to limit what they considered as harmful price-cutting, a
process called regulatory capture.[356]
Another form of economic regulation, antitrust law, seeks to strengthen market
forces so that direct regulation is unnecessary. The governmentand,
sometimes, private partieshave used antitrust law to prohibit practices or
mergers that would unduly limit competition.[356]
Bank regulation in the United States is highly fragmented compared to
other G10 countries where most countries have only one bank regulator. In the
U.S., banking is regulated at both the federal and state level. The U.S. also has
one of the most highly regulated banking environments in the world; however,
many of the regulations are not soundness related, but are instead focused on
privacy, disclosure, fraud prevention, anti-money laundering, anti-terrorism,
anti-usury lending, and promoting lending to lower-income segments.
Since the 1970s, government has also exercised control over private
companies to achieve social goals, such as improving the public's health and
safety or maintaining a healthy environment. For example, the Occupational
Safety and Health Administration provides and enforces standards for
workplace safety, and the United States Environmental Protection
Agency provides standards and regulations to maintain air, water, and land
resources. The U.S. Food and Drug Administration regulates what drugs may
reach the market, and also provides standards of disclosure for food products.
[356]

American attitudes about regulation changed substantially during the final

three decades of the 20th century. Beginning in the 1970s, policy makers grew
increasingly convinced that economic regulation protected companies at the
expense of consumers in industries such as airlines and trucking. At the same
time, technological changes spawned new competitors in some industries, such
as telecommunications, that once were considered natural monopolies. Both
developments led to a succession of laws easing regulation. [356]
While leaders of America's two most influential political parties generally
favored economic deregulation during the 1970s, 1980s, and 1990s, there was
less agreement concerning regulations designed to achieve social goals. Social
regulation had assumed growing importance in the years following the
Depression and World War II, and again in the 1960s and 1970s. During the
1980s, the government relaxed labor, consumer and environmental rules based
on the idea that such regulation interfered with free enterprise, increased the
costs of doing business, and thus contributed to inflation. The response to such
changes is mixed; many Americans continued to voice concerns about specific
events or trends, prompting the government to issue new regulations in some
areas, including environmental protection. [356]
Where legislative channels have been unresponsive, some citizens have turned
to the courts to address social issues more quickly. For instance, in the 1990s,
individuals, and eventually the government itself, sued tobacco companies
over the health risks of cigarette smoking. The 1998 Tobacco Master
Settlement Agreement provided states with long-term payments to cover
medical costs to treat smoking-related illnesses.[356]
Between 2000 and 2008, economic regulation in the United States saw the
most rapid expansion since the early 1970s.[357] The number of new pages in
the Federal Registry, a proxy for economic regulation, rose from 64,438 new
pages in 2001 to 78,090 in new pages in 2007, a record amount of regulation.
[357]
Economically significant regulations, defined as regulations which cost
more than $100 million a year, increased by 70%. [357] Spending on regulation
increased by 62% from $26.4 billion to $42.7 billion. [357]
Taxation[edit]
Main article: Taxation in the United States

U.S. federal effective tax rates by income percentile and component as

projected for 2014 by the Tax Policy Center.[358][359]
CBO estimates of historical effective federal tax rates broken down by income
level.[360]
Taxation in the United States is a complex system which may involve payment
to at least four different levels of government and many methods of taxation.
Taxes are levied by the federal government, by the state governments, and
often by local governments, which may include counties,
municipalities, township, school districts, and other special-purpose districts,
which include fire, utility, and transit districts. [361]
Forms of taxation include taxes on income, property, sales, imports, payroll,
estates and gifts, as well as various fees. When taxation by all government
levels taken into consideration, the total taxation as percentage of GDP was
approximately a quarter of GDP in 2011.[362] Share of black market in the U.S.
economy is very low compared to other countries. [363]
Although a federal wealth tax is prohibited by the United States
Constitution unless the receipts are distributed to the States by their
populations, state and local government property tax amount to a wealth tax
on real estate, and because capital gains are taxed on nominal instead of
inflation-adjusted profits, the capital gains tax amounts to a wealth tax on the
inflation rate.[364]
U.S. taxation is generally progressive, especially at the federal level, and is
among the most progressive in the developed world. [360][365][366][367] There is
debate over whether taxes should be more or less progressive. [364][368][369][370]
Expenditure[edit]
Main articles: United States federal budget and United States public debt

Federal, state, and local government spending as a % of GDP history

Development of US federal government debt ceiling from 1990 to January
2012.[371]

Fiscal Year 2015 U.S. Federal Spending Cash or Budget Basis

Fiscal Year 2015 U.S. Federal Receipts

The United States public-sector spending amounts to about 30% of GDP.
Each level of government provides many direct services. The federal
government, for example, is responsible for national defense, research that
often leads to the development of new products, conducts space exploration,
and runs numerous programs designed to help workers develop workplace
skills and find jobs (including higher education). Government spending has a
significant effect on local and regional economiesand on the overall pace of
economic activity.
State governments, meanwhile, are responsible for the construction and
maintenance of most highways. State, county, or city governments play the
leading role in financing and operating public schools. Local governments are
primarily responsible for police and fire protection.
The welfare system in the United States began in the 1930s, during the Great
Depression, with the passage of the New Deal. The welfare system was later
expanded in the 1960s through Great Society legislation, which
included Medicare, Medicaid, theOlder Americans Act and federal education
funding.
Overall, federal, state, and local spending accounted for almost 28% of gross
domestic product in 1998.[372]
As of January 20, 2009, the total U.S. federal debt was $10.63 trillion.[373] The
borrowing-cap debt ceiling as of 2005 stood at $8.18 trillion.[374] In March 2006,
Congress raised that ceiling an additional $0.79 trillion to $8.97 trillion, which is
approximately 68% of GDP.[375] Congress has used this method to deal with an
encroaching debt ceiling in previous years, as the federal borrowing limit was
raised in 2002 and 2003.[376] As of October 4, 2008, the "Emergency Economic
Stabilization Act of 2008" raised the current debt ceiling to $11.3 trillion.[377]
The federal government's debt rose by $680 billion in 2013,[21] and was at
$17.091 trillion in 2014.[378] While the U.S. public debt is the world's largest in
absolute size, another measure is its size relative to the nation's GDP. As of
October 2013 the debt was 107% of GDP. [379] This debt, as a percent of GDP, is
still less than the debt ofJapan (192%) and roughly equivalent to those of a few
western European nations.[380]
Budget[edit]
Further information: United States budget

Annual federal deficit as a percent of GDP

CBO reported in October 2014: "The federal government ran a budget deficit of
$486 billion in fiscal year 2014...$195 billion less than the shortfall recorded in
fiscal year 2013, and the smallest deficit recorded since 2008. Relative to the
size of the economy, that deficitat an estimated 2.8 percent of gross
domestic product (GDP)was slightly below the average experienced over the
past 40 years, and 2014 was the fifth consecutive year in which the deficit
declined as a percentage of GDP since peaking at 9.8 percent in 2009. By
CBO's estimate, revenues were about 9 percent higher and outlays were about
1 percent higher in 2014 than they were in the previous fiscal year."[1]
Fiscal revenue fiscal year 2012 (Total Receipts)[citation needed]

Revenue $ billions 2012 fiscal Percent of

Revenue by source
year revenue

Individual income
1,165 47.19%
taxes

Social Security
841 34.06%
receipts

Corporate taxes 237 9.60%

Misc. taxes 105 4.25%

Excise taxes 79 3.20%

Customs and duties 31 1.26%

Estate and gift taxes 11 0.44%

Revenue total 2,469 100.00%

Fiscal expenses fiscal year 2011[381]

Expenses $ millions 2011 Percent of

Expenses by department
fiscal year expenses

Health and Human Services 891,244 24.76%

Social Security Administration 784,194 21.79%

Defense-Military 678,073 18.84%

Treasury 538,702 14.97%

Agriculture 139,399 3.87%

Labor 131,973 3.67%

Veterans Affairs 126,917 3.53%

Transportation 77,302 2.15%

Office of Personnel Management 74,091 2.06%

Education 65,486 1.82%

Housing and Urban Development 57,005 1.58%

Other Defense Civil Programs 54,862 1.52%

Homeland Security 45,744 1.27%

Energy 31,372 0.87%

Justice 30,518 0.85%

State 24,355 0.68%

International Assistance Programs 24,355 0.68%

National Aeronautics and Space

17,617 0.49%
Administration

Other independent agencies 14,496 0.40%

Interior 13,529 0.38%

Environmental Protection Agency 10,770 0.30%

Corps of Engineers 10,138 0.28%

Commerce 9,930 0.28%

Judiciary 7,295 0.20%

National Science Foundation 7,146 0.20%

Small Business Administration 6,162 0.17%

Legislative 4,583 0.13%

General Services Administration 1,889 0.05%

Expense total 3,599,285 100%

List of state economies[edit]
Economy of California

Economy of New York

Economy of Oklahoma

Economy of Texas

Economy of Washington

See also[edit]

United States portal

Business and economics portal

Technology portal

Energy portal

Economy of Puerto Rico

Energy policy of the United States

Historical Statistics of the United States

Job creation index

Labor unions in the United States

List of industry trade groups in the United States

World oil market chronology from 2003