Outline of the US Economy.pdf

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U. S. ECONOMY

2 0 0 9 E D I T I O N

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O U T L I N E O F T H E

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O U T L I N E O F T H E

U. S. ECONOMY

2 0 0 9 E D I T I O N

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Outline of the U.S. Economy

dition

Publishedin2009by:BureauofInternationalInformationPrograms

UnitedStatesDepartmentofState

http://www.america.gov/publications/books.htmloutline_economy

STAFF

Editor in Chief: MichaelJayFriedman

Managing Editor: BruceOdessey

Design: DavidHamill

Graphs: VincentHughes

Photo editor: MaggieSliker

FRONT COVER: top illustration DaveCutler/StockIllustrationSource

bottom illustration JaneSterrett/StockIllustrationSource

ABOUT THE AUTHOR

Thiseditionof Outlineoftheconomy hasbeencompletelyrevisedbyPeterBehr,a

formerbusinesseditorandreporterforthe shingtonPost Itupdatesseveralprevious

editionsthatwereissuedfirstbytheU.S.InformationAgencyandthenbytheU.S.Depart-

mentofStatebeginningin1981.

ii

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C O N T E N T S

CHAPTER 1: The Challenges of this Century

1

Theworldslargestandmostdiverseeconomyfaces

themostsevereeconomicchallengesinageneration

ormore.

CHAPTER 2: The Evolution of the U.S. Economy

10

Theeconomyhasexpandedandchanged,guidedby

someunchangingprinciples.

CHAPTER 3: What the U.S. Economy Produces

48

ThelargeU.S.multinationalfirmshavealteredtheir

productionstrategiesandtheirrolesinresponseto

globalizationastheyadapttoincreasingcompetition.

CHAPTER 4: Competition and the American Culture 62

Competitionhasremainedadefiningcharacteristicof

theU.S.economyintheAmericanDreamofowninga

smallbusiness.

CHAPTER 5: Geography and Infrastructure

76

Educationandtransportationhelpholdtogetherwidely

separatedanddistinctregions.

CHAPTER 6: Government and the Economy

90

MuchofAmericashistoryhasfocusedonthedebate

overthegovernmentsroleintheeconomy.

CHAPTER 7: A U.S. Economy Linked to the World 114

Despitepoliticaldivisions,theUnitedStatesshows

nosignofretreatfromglobalengagementintrade

andinvestment.

CHAPTER 8: A New Chapter in America’s Economic Story 130

TheUnitedStates,initsdemocraticway,facesupto

immenseeconomicchallenges.

Ou t l i ne o f the U . S . Economy

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