Economy of the US

How has our economy changed in the US over the last 200 years?

Average US worker In 1790 they were self employed farmers, worked from sunrise to sunset. Most of the farmers crops and livestock raised were consumed by the farmer.

In 1890 the average worker labored in a factory for long hours (60 hour work week) for very low wages. Some were as young as 12 years of age.

In the start of the 21 st century, the average worker was spending most of the workday in an office in front of the computer, processing information or providing services.

The standard workweek was 40 hours, the government regulated workplace safety and salaries generally covered living expenses, leisure-time activities and perhaps a savings account.

The US is a world leader in agricultural products, manufactured goods and global trade.

What are some factors that have contributed to the overall success of the American economy?

Available natural resources, a skilled labor force and a stable political system

Free enterprise - economic system that individuals own most of the resources, technology, and businesses and can operate them for a profit with little control from the government.

Why are things priced the way are? How much is this new car? How much are these pencils?

The law of supply and demand

What are some items that have a high demand and a small supply?

Diamonds, Gold & Oil

What would happen if technology made a new cool phone or iPod, what would happen to the demand for these things?

Demand goes up, what happens to the price? (P2 from P1) Price goes up!!!!!!!!!!!

The same principles apply for gasoline. During the summer, people use their cars to drive on vacation. Demand for gas goes up and if supply doesn’t go up, the price of gas will increase.

What happens to price when supply moves up?

Price goes down when supply increases.

Demand changes over time. What happened to these things that where popular years ago? These used to be in high demand.

The majority of American now work in the service industry. Nearly 3 out of 4 Americans work in service-related jobs. They provide a service rather than a product. What are some service jobs people do?

This means that the US has a postindustrial economy, one where manufacturing no longer plays a dominate role.

Many American corporations engage in business worldwide and are called multinationals.