USA Economy

USA Economy

The United States has a capitalist mixed economy, which is fueled by abundant natural resources, a well-developed infrastructure, and high productivity. According to the International Monetary Fund, the United States GDP of more than $13 trillion constitutes over 25.5% of the gross world product at market exchange rates and over 19% of the gross world product at purchasing power parity (PPP). The largest national GDP in the world, it was slightly less than the combined GDP of the European Union at PPP in 2006. The country ranks eighth in the world in nominal GDP per capita and fourth in GDP per capita at PPP. The United States is the largest importer of goods and third largest exporter, though exports per capita are relatively low. Canada, China, Mexico, Japan, and Germany are its top trading partners. The leading export commodity is electrical machinery, while vehicles constitute the leading import.

The private sector constitutes the bulk of the economy, with government activity accounting for 12.4% of GDP. The economy is postindustrial, with the service sector contributing 67.8% of GDP. The leading business field by gross business receipts is wholesale and retail trade; by net income it is finance and insurance. The United States remains an industrial power, with chemical products the leading manufacturing field. The United States is the third largest producer of oil in the world. It is the world's number one producer of electrical and nuclear energy, as well as liquid natural gas, sulfur, phosphates, and salt. While agriculture accounts for just under 1% of GDP, the United States is the world's top producer of corn and soybeans. The country's leading cash crop is marijuana, despite federal laws making its cultivation and sale illegal. The New York Stock Exchange is the world's largest by dollar volume. Coca-Cola and McDonald's are the two most recognized brands in the world.

In 2005, 155 million persons were employed with earnings, of whom 80% worked in full-time jobs. The majority, 79%, were employed in the service sector. With approximately 15.5 million people, health care and social assistance is the leading field of employment. About 12% of American workers are unionized, compared to 30% in Western Europe. The U.S. ranks number one in the ease of hiring and firing workers, according to the World Bank. Between 1973 and 2003, a year's work for the average American grew by 199 hours. Partly as a result, the United States maintains the highest labor productivity in the world. However, it no longer leads the world in productivity per hour as it did from the 1950s through the early 1990s; workers in Norway, France, Belgium, and Luxembourg are now more productive per hour. The United States ranks third in the World Bank's Ease of Doing Business Index. Compared to Europe, U.S. property and corporate income taxes are generally higher, while labor and, particularly, consumption taxes are lower.

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