Warm-up: List 5 things you, or your parents, have purchased recently You, as a consumer, have participated in the US economy: the complex of human activities concerned with the production, distribution, and consumption of goods and services the management of the resources of a community, country, etc., especially with a view to its productivity

The U.S. 21st-Century The Economy

The first commercially successful computer was developed by IBM The 20th century unfolded in a whirl of new technology. Perhaps no innovation was as significant as the computer. The first modern computer was invented in 1946 to benefit the military because of enemy rivalries during WWII. The first commercially successful computer was developed by IBM The development of the silicon microchip made personal computers possible.

By the 1980s, computers were transforming American business and everyday life. Apple Computers and Microsoft made computers and software affordable for millions of Americans. Technological advances made other electronics, such as video games and cell phones possible.

directly responsible for creating a huge database and research tool. The late 20th century became known as the “information age.” Computers, cell phones, and satellites made communication and information access fast and easy. The Internet, a worldwide network of computers, transformed business, education, and entertainment... directly responsible for creating a huge database and research tool. 5

Computers changed the way a business operates Many people in locations around the world might be involved in one purchase The US was transforming from an industrial economy to a service economy Globalization caused a decline in the number of US manufacturing jobs The new service economy caused a decline in union memberships A positive effect of economic globalization is that people have been exposed to new ideas and technologies 6

New communications technologies enabled companies to do business around the world. Multinational corporations began doing business in many different countries at one time. Globalization has made products cheaper and available to more people, but this comes at a price: economic problems that affect one region are now often felt in other regions.

The 1990’s Economy Consumer confidence and spending Driven by the rise of technology and the Internet The “dot.com” industries Low unemployment and low inflation (progressive increase in the general level of prices brought about by an expansion in demand or the money supply) 1990 5.6% 1995 5.6 6.8 1996 5.4 7.5 1997 4.9 1993 6.9 1998 4.5 1994 6.1 1999 4.2

1990’s Economy (cont) Billions in bonds sold to Chinese, who gradually assumed the role of banker to U.S. Dependence on Chinese cheaply manufactured goods to sustain American consumer-driven economy Kept inflation, interest rates and wage costs low Dow Jones Industrial Average stood at 1000 in late 1980s and soared to 11,000 by 1999.

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