Economy of the United States

The economy of the United States is the world's largest single national economy. The United States' nominal GDP was estimated to be $17.1 trillion in December 2013, approximately a quarter of nominal global GDP. Its GDP at purchasing power parity is also the largest of any single country in the world, approximately a fifth of the global total. The United States has a mixed economy and has maintained a stable overall GDP growth rate, a moderate unemployment rate, and high levels of research and capital investment. Its five largest trading partners are Canada, China, Mexico, Japan, and Germany. The US has abundant natural resources, a well-developed infrastructure, and high productivity. It has the world's sixth-highest per capita GDP (PPP). The U.S. is the world's third-largest producer of oil and second-largest producer of natural gas. It is the second-largest trading nation in the world behind China. It has been the world's largest national economy (not including colonial empires) since at least the 1890s. As of 2010, the country remains the world's largest manufacturer, representing a fifth of the global manufacturing output. Of the world's 500 largest companies, 132 are headquartered in the US, twice that of any other country. The country 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. Foreign investments made in the US total almost $2.4 trillion, while American investments in foreign countries total over $3.3 trillion. Consumer spending comprises 71% of the US economy in 2013. The labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world. 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. The US economy is currently embroiled in the economic downturn which followed the financial crisis of 2007--08, with output still below potential according to the Congressional Budget Office and unemployment still above historic trends while household incomes have stagnated. As of September 2013, the unemployment rate was 7.2% (11.26 million people), while the government's broader U-6 unemployment rate, which includes the part-time underemployed, was 13.1%. At 11.3%, the U.S. has one of the lowest labor union participation rates in the OECD. 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. The wealthiest 10% of the population possess 80% of all financial assets. Total public and private debt was $50.2 trillion at the end of the first quarter of 2010, or 3.5 times GDP. In October 2013, the proportion of public debt was about 1.07 times the GDP. Domestic financial assets totaled $131 trillion and domestic financial liabilities totaled $106 trillion. History The economic history of the United States has its roots in European settlements in the 16th, 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. In 180 years the US grew to a huge, integrated, industrialized economy that still makes up around one fifth of the world economy. As a result, the US GDP per capita converged on and eventually surpassed that of the U.K., as well as other nations that it previously trailed economically. The economy has maintained high wages, attracting immigrants by the millions from all over the world. 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. Because of the great changes in the economy over the centuries, it is difficult to compare the severity of modern recessions to early recessions. Recessions after World War II appear to have been less severe than earlier recessions, but the reasons for this are unclear. This video targeted to blind users. Attribution: Article text available under CC-BY-SA Creative Commons image source in video