Economy in the USA
#The United States of America: Economy The USA is often referred to as the “state of superlatives”. In fact, the US is the leading economic and trading power (some trading partners include Germany, Canada and Mexico). There is also a large domestic market. Around a third of the world’s hundred largest companies are based in the USA. ###Worth knowing **Area**: About 10 million square kilometers **Population**: Approximately 325 million (make up 5 percent of the world’s total population) **Population density**: On average around 33 inhabitants per square kilometer **Currency**: US Dollar **Form of government**: Federal Republic **System of government**: presidential system **Head of state**: Donald Trump (as of 2018) **Gross Domestic Product**: nearly $60,000 per capita (a quarter of global GDP) **Economic strength:** The United States is rich in natural resources and agriculture is also very productive. Companies are also very risk-averse. In addition, many well-known inventions have been made in the USA in areas such as..: 1. Biotechnology 2. computer industry 3. key technologies 4. Electronics 5. software engineering 6. medicine **Some examples are the following inventions:** Microchip, Teflon coating, GPS. The USA is also integrated into the global financial system (via the New York Stock Exchange). **Economic development:** At the end of the 18th century, the textile, iron and shipbuilding industries developed in the eastern USA. They continued to expand south and west to the Five Great Lakes. Already in the 20th century the USA was an important service society in the following areas: -Research communication -information -distribution -advertising **Reasons for the rapid development of the economy:** -There were or are large quantities of fertile land in the USA. -In addition, North America is very rich in mineral resources, for example there is an extremely high coal and iron ore deposit in the Appalachian Mountains. There were many newly immigrated, achievement-minded workers at the time. -It was possible for the sciences to develop freely -There was liberal economic legislation -The USA was not as badly affected by war damage as Europe, for example. There were or are many risk-happy entrepreneurs -high investments -State contracts in the field of armaments and space. **Agriculture:** About 20% of the total area of the USA is used for agricultural purposes (this area is already larger than all states of the EU together). The USA produces more agricultural products than it can consume itself, so much of it is exported abroad. The most cultivated or produced, for example, is the USA: -Maize -soybeans -cheese -Poultry and beef -Oranges **Characteristics of agriculture in the USA:** -monoculture -mechanization -Use of chemistry -Mass livestock farming **Livestock farming in the United States:** Modern livestock farming is carried out in so-called feedlots, where up to one hundred thousand animals are kept. These are fed in such a way that the meat is as tasty as possible later on. The animals gain weight very quickly until they have reached the desired weight and are finally slaughtered. The welfare of the animals is not taken into account at all. They are overfed and stuffed with various medicines - to achieve the best possible result. The butchers are only interested in earning as much money as possible. **Energy resources:** The USA is one of the largest energy consumers in the world. In the United States, around a quarter of the world’s energy sources are consumed. A large part of this, 90 percent, is non-renewable energy. Mainly -crude oil -Natural gas -Coal is used up. **Coal:** Coal construction has a long tradition in the United States. The material consists of sediments of plant remains and has been over time under high pressure to become today’s coal. Until the 1950s, people worked in mining to extract coal. Later, other methods were used to extract coal, such as “mountaintop removal”, which involves the removal of mountain peaks by blasting. This method, however, causes noise and a lot of dust. The environmental impact is quite high and some areas are destroyed over time. **Gas:** Natural gas originated millions of years ago from marine animals that sank into the mud and were covered by layers. Deep holes have to be drilled to extract it. Then, chemically contaminated water is pumped down under high pressure (“fracking”). The gas is usually transported through underground pipes. **The manufacturing belt:** The Manufacturing Belt is located in the northeast of the USA at the 5 big lakes. This has always been a good place in all respects such as propulsion and transport. Included are the cities of -Chicago -Detroit -Pittsburgh -New York. **History of the Manufacturing Belt:** DEVELOPMENT: In the 19th century, steel was produced most in the northeast of the USA. Soon the demand for steel increased throughout North America. The automotive industry became the key industry of the manufacturing belt. DOWNLOAD: In the 1950s, the Manufacturing Belt went down. There were several reasons for this, including the following: -Many workers were replaced by machines, so many unemployeds emigrated. -Demand for steel fell as it was replaced by other materials such as plastics. -products could be manufactured cheaper abroad. REVIVAL: Due to a structural change in the region, the Manufacturing Belt is once again one of the most densely populated areas. Growth industries were established. The government promotes the economic development of the region.