Christie

BY: Christie Godwin Describe how this economy is being affected by globalisation and discuss the strategies being used to promote economic growth and development' EXECUTIVE SUMMARY In this report I will be talking about how the economic growth in the United States of America is going throughout the years and how the various things in the economy have helpt as an advantage and a disadvantage to the USA economy, and how they have used certain strategies to help pick up the economic growth in the economy of USA. The GDP in USA The economy of the United States of America is the largest national economy in the world. It gross domestic product (GDP) was estimated as $14.4 trillion in 2008. Its gross domestic product growth was at 0.4% in 2008 and its inflation rate was -1.3% in Sep 2008-09. The population in the USA was at 13.2% in 2008. The USA economy maintains a very high level of output per person. The USA economy has maintained a stable overall GDP growth rate a low unemployment rate and high levels of research and capital investment funded by both national and foreign investors. In 2008 consumer spending made twenty two percent of the economic activity in the USA. Since the 1970 the USA economy has absorbed savings from the rest of the world. In third quarter of the financial year 2008, there was a decrease in the gross domestic product of USA by 0.3 percent. Much of this could be attributed to deceleration in contributions from sectors like: * personal consumption expenditures * Equipments * Residential fixed investment and software, which have traditionally contributed well to gross domestic product of USA However, there were positive contributions from sectors like * federal government expenditures * non residential structure * private inventory investment * local and state government expenditures * Exports have been able to dilute impact of falling real gross domestic product to a certain extent Current gross domestic product reports of US show that slowdown in national economy has been more than expected. In third quarter of 2008, The GDP growth has been slowed down by 0.3 percent when it was estimated that this rate would be 0.3 percent. But economic reports of second quarter of financial year 2008 show an entirely different picture. As per these reports US economy has grown by 1.9 percent. In this period, growth of GDP had been revised back to 2.8 percent. In first quarter of 2008 fiscal, US growth rate of gross domestic product had been 1 percent. Distribution of income and wealth According to the United States Census Bureau, the pretax median household income in 2007 was $50,233. The median ranged from $68,080 in Maryland to $36,338 in Mississippi. In 2007, the median real annual household income rose 1.3% to $50,233, according to the Census Bureau. The real median earnings of men who worked full time, year-round climbed between 2006 and 2007, from $43,460 to $45,113. For women, the corresponding increase was from $33,437 to $35,102. The median income per household member (including all working and non-working members above the age of 14) was $26,036 in 2006. The recently released US Income Mobility Study showed economic growth resulted in rising incomes for most taxpayers over the period from 1996 to 2005. Median incomes of all taxpayers increased by 24 percent after adjusting for inflation. While booming stock markets, giant mergers and frantic financial speculation provide huge rewards to a tiny minority, the majority of the USA people are not enjoying much benefits, In fact living standards have declined, while the burden of work and insecurity have grown. These materials consider the consequences of income inequality as well as the increasing concentration of wealth both within and between nations. The USA trade The United States is the most significant nation in the world when it comes to international trade. For decades, it has led the world in imports while at the same time remaining one of the top three exporters of the world. As the major epicenter of world trade, the United States enjoys leverage that many other nations do not. As the major epicenter of world trade, the United States enjoys leverage that many other nations do not. For one, since it is the world's leading consumer, it is the number one customer of companies all around the world. Many businesses compete for a share of the USA market. In addition, the United States occasionally uses its economic leverage to impose economic sanctions in different regions of the world. The USA is the top export market for almost 60 trading nations worldwide. Since it is the world's leading importer, there are many USA dollars in circulation all around the planet. The historically stable American economy and effective monetary policy led to faith in the U.S. dollar. 2009 has seen government policy that is weakening the USA dollar. Large foreign economies own huge dollar reserves (especially as the US is more in debt) so there is a fear that they will move away from the dollar. In order to fund the national debt (also known as public debt), the United States relies on selling USA treasury bonds to people both inside and outside the country, and in recent times a growing percent of buyers are international. In addition as you can see the USA gets a lot out of the world trade for themselves and if they didn’t do world trade the entire world would suffer as they are the epicenter of it they have the world trade centers. If they were to crash or stop operating the whole worlds trade would stop as we all rely on the USA trade to keep the world running. In January 2009 the exports were at 78,379.0 and the imports were at 122,226.0. The USA trade is going alright as you can see by the statistics. There are many strategies been put in place to try push the economic growth up, They have created more jobs and put in the baby bonus the government also gave out $900 to every person who paid taxes last year, they have also used the inflation rate and they now have more research teams thinking of new ways the government can introduce new things to push the economy up more and ways society can help push the economic growth up.