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 became the United States of America. As a result, the U. GDP per capita converged on and eventually surpassed that of the UK, as well as other nations that it previously trailed economically.
United States Economy Overview Economic Overview of the United States Despite facing challenges at the domestic level along with a rapidly transforming global landscape, the U.
Moreover, according to the IMF, the U.
Even though the services sector is the main engine of the economy, the U. However, large amounts of arable land, advanced farming technology and generous government subsidies make the U. The country has access to abundant natural resources and a sophisticated physical infrastructure.
It also has a large, well-educated and productive workforce. Moreover, the physical and human capital is fully leveraged in a free-market and business-oriented environment. The government and the people of United states economy United States both contribute to this unique economic environment.
The government provides political stability, a functional legal system, and a regulatory structure that allow the economy to flourish.
The general population, including a diversity of immigrants, brings a solid work ethic, as well as a sense of entrepreneurship and risk taking to the mix. Economic growth in the United States is constantly being driven forward by ongoing innovation, research and development as well as capital investment.
A mix of factors, including low interest rates, widespread mortgage lending, excessive risk taking in the financial sector, high consumer indebtedness and lax government regulation, led to a major recession that began in The housing market and several major banks collapsed and the U.
It also introduced a stimulus package worth USD billion to be spent across the following 10 years to boost the economy. The economy has been recovering slowly yet unevenly since the depths of the recession in The economy has received further support through expansionary monetary policies.
While the labor market has recovered significantly and employment has returned to pre-crisis levels, there is still widespread debate regarding the health of the U. In addition, even though the worst effects of the recession are now fading, the economy still faces a variety of significant challenges going forward.
Deteriorating infrastructure, wage stagnation, rising income inequality, elevated pension and medical costs, as well as large current account and government budget deficits, are all issues facing the US economy.
This period was marked by a surge in economic activity and productivity, a growing and more prosperous middle class, and the rise of the baby boomer generation. From the late s to the early s, U.
By the s, the structural change in the economy away from industry and manufacturing to services was in full force. However, after several decades of unprecedented growth, the economy began to show signs of slowing and a series of events, including the collapse of the Bretton Woods system, the oil crisis and increased global competition, precipitated important economic changes.
The s gave rise to Reaganomics, a series of economic policies promoted by President Ronald Reagan. The main objectives were reduced government spending and regulation, as well as lower taxes and a tighter money supply.
In a broader sense, Reaganomics marked a turn toward free-market supply-side economics and away from the Keynsian-inspired economics that had been favored since the Great Depression.
Increasing global integration and the rise of new technology, including the adoption of productivity-enhancing IT in the workplace and the surge of high-tech companies, helped fuel an economic boom in the s.
The period between and marked the longest sustained expansion in U. S economic history, and powered a steep rise in employment, income and consumer demand. Moreover, the strong growth and low unemployment during this time were particularly remarkable because the government budget was reigned in simultaneously and actually achieved a surplus for four years between and The fiscal improvement was made possible in part by tax increases introduced by President Bill Clinton, but also thanks to the booming economy and surging stock market.The United States’ economic freedom score is , making its economy the 18th freest in the Index.
Its overall score has increased by point, with a significant improvement in financial. Find the United States economic freedom report in the Index of Economic Freedom. The report includes the US population, GDP, unemployment, inflation, government spending and more. Data extracted on: September 05, Source: U.S.
Bureau of Labor Statistics Note: More data series, including additional geographic areas, are available through the . The United States is the 2nd largest export economy in the world.
In , the United States exported $T and imported $T, resulting in a negative trade balance of $B.
In the GDP of the United States was $T and its GDP per capita was $k. United States Economy Overview Economic Overview of the United States Despite facing challenges at the domestic level along with a rapidly transforming global landscape, the U.S.
economy is still the largest and most important in the world. NOTE: 1) The information regarding United States on this page is re-published from the World Fact Book of the United States Central Intelligence Agency.
No claims are made regarding the accuracy of United States Economy information contained here.