1. American Economy

2. Main Parts  The US Economic Power  The Economic System  Government Role  Economic Sectors  Foreign Trade  Strengths and Weaknesses of the US economy

4. The Economic System  Example of capital market economy  Free-market economy: - Dominant private sector - Large corporations, global, conglomerates; small enterprises  Changing role of Government  Not pure free enterprise market economy - E.g. farmers, textile companies, workers.

6. Government Role in Economy  Concept of natural liberty: a policy of laissez- faire.  Gov ’ t limited role: a few general functions.  Gov ’ t intervention in the 1930s.  The appropriate role: 1. Efficient, fair; 2. Balance budget; 3. Cut income tax.  Reversal of the federal budgeting (98-00)

7. Economic Sectors Agriculture - Less than 2% GDP - Immense output - Problems: weather & reduced demand - Agribusiness and family farming - Features: more capital-intensive, efficient and concentrated.

8. Belt Areas

9. US Trade Balance CategoryJuly 2005 August 2005 Sept 2005 Percent Change Import 137,605140,766144,5432.68 Export 75,06576,70473,417-4.29 Balance -62,540-64,063-71,12611.03 Balance Sources: Census Bureau, Bureau of Economic Analysis (mil dollars)

10. Weaknesses of the US Economy  The world’s leading debtor nation.  One major problem: low rate of savings  High economic insecurity among workers: competition, downsizing.  Rising income inequality.  Strong dollar value: exports deficit.

11. The End