…emphasis on private ownership … most decisions made by private individuals and business firms...
TRANSCRIPT
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THE USA : A MARKET…
…emphasis on private ownership… most decisions made by private
individuals and business firms…limited government’s authority over
individuals, inc. economy… BUT Federal Gov. Regulates private
enterprise (eg prices, health, pollution, etc)
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US ECONOMY BY 2007
Improved standard of living 10% of the adult population possessed
69.8% of household wealth 12.5% of Americans below the poverty
line Belief that the market can do no wrong
and the government no right
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WALL STREET= NY STOCK EXCHANGE
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WALL STREET= NY STOCK EXCHANGE
THE BULL = stock market prosperity
= many investors buy stocks
1980s and 90s Dominant financial
services sector
THE BEAR = stock market decline
= drop in stock prices makes investors sell
2007-8 Financial crisis
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FINANCIAL CRISIS =>FALL OF THE IDEOLOGY OF UNREGULATED CAPITALISM
High unemployment rate Steady decline in the value of market Bursting of Dot-com bubble (2002) Bursting of housing bubble (2005-6) Subprime mortgage crisis (2007-7)
Fall of banks and investment houses => need for tighter regulations
Sharp slowing down of consumer spending
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US AGRICULTURE
Fruit
Forests
fishing
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MINING AND ENERGY
Fossil fuelsOIL +GAS = Alaska, California, Gulf of
MexicoCOAL = Appalachians
MineralsCopper, uranium, gold, silver = Rocky
mountainsIron = Minnesota, Michigan
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MINING AND ENERGY
Coal used to produce 49% of US electricity
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USA energy generated from…
coalnatural gasnuclear power19%hydroelectricity8%other sources
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MANUFACTURING
North East + Mid-westGreat lakes region => The
Rust belt in 1970s because of decline in industrial heartland
1980s-90s: recoveryDetroit = Motown > “the Big
three” : Ford, General Motors, Chrysler
New York: book publishing industry
Ohio= rubber (tyre) and plastics
The West CoastSeattle: aircrafts (Boeing)California, Silicon valley (n.
San francisco) => computer industry
Texas + Louisiana: petro-chemicals, pharmaceuticals
Food processing: Illinois (Chicago) = meat Winsconsin = dairy
processing Central valley, California =
fruit and veg.
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US SERVICES TRANSPORT TRADE ¾ OF EMPLOYEES
Transport: Road =>
highways;greyhound buses
Air => Boeing Waterways
Finance => Wall street NYSE + Chicago
Tourism => California, Hawaii, Florida, + national parks + cities
Entertainment industry
Design of software Health care
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USA TRADE (IMBALANCE)
Imports (exceed exports by
about 70%) Petroleum Cars Consumer goods Raw materials Food
Exports (12%) Machinery Arircrafts Computers High-tech Chemicals Crops (corn+
soybeans)