Transcript US Economy - Euroakadeemia

US ECONOMY
Facts about state budget, taxes etc
FACTS
 GDP
approx 15 trillion (2011)
 GDP per capita 46, 844 , 7th in the
world
 Inflation 3,9% (2011)
 Population below poverty 15 %
 Unemployment rate 9% (2011)
MAIN INDUSTRIES
petroleum, steel, motor vehicles
 aerospace, telecommunications
 Chemicals
 creative industries
 electronics
 food processing, consumer goods
 lumber, mining
 Defense
 biomedical research and health care services
 computers and robotics

EXPORTS – 1,280 TRILLION USD (2010)
Goods:
 agricultural products (soybeans, fruit,
corn) 9.2%,
 industrial supplies (organic chemicals)
26.8%
 capital goods (transistors, aircraft, motor
vehicle parts, computers,
telecommunications equipment) 49.0%
 consumer goods (automobiles, medicines)
15.0% (2009)
PARTNERS
 Canada
13.2%;
 Mexico, 8.3%;
 China, 4.3%;
 Japan, 3.3%
(2009)
IMPORT – 1,948 TRILLION USD (2010)
Goods:
 agricultural products 4.9%
 industrial supplies 32.9% (crude oil 8.2%)
 capital goods 30.4% (computers,
telecommunications equipment, motor
vehicle parts, office machines, electric
power machinery)
 consumer goods 31.8% (automobiles,
clothing, medicines, furniture, toys)
(2009)
PARTNERS
 China,
15.4%;
 Canada, 11.6%;
 Mexico, 9.1%;
 Japan, 4.9%;
 Germany, 3.7%
(2009)
 Largest
trading country in the world
 As of 2010 – EU largest trading partner of
US
 Canada, China and Mexico –largest
individual trading nations
 One of the largest and most influential
financial markets
 Worlds largest economy since 1870s
MIXED ECONOMY –STABLE GROWTH
 -stable
overall GDP growth rate
 -low unemployment rate
 -high levels of research and capital
investment
 Public
debt 14,972 trillion USD (99,7%
of GDP)
 Revenues 2,302 trillion
 Expenses 3,601 trillion
 (2011)
Credit rating
 Moody´s AAA
 Fitch AAA
 Standard & Poor´s AA+ (AAA)
REASONS BEHIND US ECONOMIC GROWTH
a large unified market
 a supportive political-legal system
 vast areas of highly productive farmlands
 vast natural resources (especially timber, coal
and oil)
 a cultural landscape that valued
entrepreneurship
 a commitment to investing in material and
human capital
 a willingness to exploit labor

ECONOMIC FREEDOM
A
central feature of the U.S. economy is
the economic freedom afforded to the
private sector
 Economic decisions - the direction and
scale of what the U.S. economy produces
 Relatively low levels of regulation and
government involvement
 A court system that generally protects
property rights and enforces contracts
ENTREPERNEURSHIP
 29.6
million small businesses
 30% of the world's millionaires
 40% of the world's billionaires
 as well as 139 of the world's 500
largest companies
VALUABLE INVESTMENTS IN SCIENCE AND
INNOVATION
 Airplanes
 Internet,
email, cellphone
 Microchip, laser
 refrigerator, microwave, air conditioning
 LCD and LED technology
 assembly line
 supermarket, bar code
 electric motor
 ATM
EMPLOYMENT
Approx 154.4 million employed individuals
 US. Government - largest employment sector
with 22 million
 Largest employer - small businesses (SMBs),
representing 53% of workers
 2nd largest - large businesses, they employ a
total of 38% of the US workforce
 A total of 91% of Americans are employed by the
 Government accounts for 8% of all US workers
 Over 99% of all employing organizations in the
US are small businesses

LABOUR FORCE
 Former
AND UNEMPLOYMENT
immigrants, former slaves and
their descendants make up the majority of
labour force in US
 Unemployment rate is officially 9%, unoff
17 %
 Among youth 18,5%
 Among african-american young males
34,5%
 In Detroit 30% (after GM was closed)
SECTORS / INDUSTRIES
 RETAIL
– the major sector, leading US
economy (Walmart, McDonalds,
Amazon.com)
 ENERGY – US is the 2nd largest energy
consumer in the world
- fossil fuels: 40% petroleum, 23% coal, 23%
natural gas
- nuclear 8,4% and renewable energy 6,8%
US is nr 1 oil importer - 70% reliant on
foreign oil
SECTORS / INDUSTRIES
 MANUFACTURING
- worlds largest
manufacturer – greater than Germany,
France, India and Brazil combined.
 Leads airplane manufacturing.
 Main industries include petroleum, steel,
automobiles, construction machinery,
aerospace, agricultural machinery,
telecommunications, chemicals,
electronics, food processing, consumer
goods, lumber, and mining.
SECTORS / INDUSTRIES
 AGRICULTURE
- US controles 50% of
worlds grain exports
 INTERNATIONAL TRADE – leading
importer
 FINANCE – New York Stock Exchange is
3x larger than nay other stock exchange
in the world (NASDAQ is nr 3)
 Trade deficit in 2010 was 635 billion USD.
REGULATIONS
Regulations to control prices (price
fluctuations):
1. State-regulated monopolies (set price
levels)
2. Antitrust law – prohibiting merges that
limit competition
3. Bank regulations – 2 levels, state and
government level
4. Control over private companies (for
health and safety purposes)- ex Food and
Drug Administration
TAXES
Taxes involve payments to at least 4
different levels of government:
 federal government
 State governments
 Local governments
 Counties, municipalities, townships
The average marginal tax rate is about 40%
of income.
FEDERAL TAXATION
 Income
tax 10-35/15-35%
 Payroll tax (social insurance 2x(6,2/1,45%)
 Alternative minimum tax (AMT) 26-28%
 Estate tax
 Excise duty
 Gift tax
 Corporate tax
 Capital gains tax
STATE AND LOCAL TAXES
 State
income tax
 Sales tax (not VAT) 1-10%
 Use tax
 Property tax
 Land value tax
 All
taxation rules vary widely by
jurisdiction.
 the
federal personal income tax is
progressive - a higher marginal tax rate is
applied to higher ranges of income
 The federal payroll tax is a flat tax – for
Social Security and Medicare
3
tax administrations on fereral level:
 Alcohol and Tobacco Tax and Trade
Bureau (TTB)
 Internal Revenue Service (IRS)
 U.S. Customs and Border Patrol
STATE BUDGET