Chapter 3American EconomyAmerican EconomynContents:n1. Industrial Revolutionn2. General Surveyn3. Industriesn4. AgricultureAmerican EconomyIndustrial RevolutionnAdam SmithnAlexander HamiltonnEarly American industriesnSecond developmentnA Third developmentnA fourth developmentnNew era for the United StatesAmerican EconomyIndustrial Revolutionn “The Wealth of Nations”n Adam SmithAmerican EconomyGeneral Surveyn1. The structure of the economyn2. The position in the worldn3. Inflation and DeficitAmerican EconomyGeneral Surveyn Structure of the economyn1. Privately-owned businessn2. State-owned businessn3. non-profit organizationsAmerican EconomyGeneral Surveyn structure of the employeesn1. self-employed (75%)n2. government workers (21%)n3. employees of nonprofit organizations (4%)American EconomyGeneral SurveynPosition of the American Economyn 1. “superpower” in world affairsn 2. dominant position of the dollar “Bretton Woods System” 布雷顿森林体系/布莱登国际货币制度 American EconomyGeneral Survey Bretton Woods Systemn1. most major currencies are pegged to the US dollarn2. the dominant position of the dollar was formally established in the Bretton Wood system which was held in 1945 at Bretton Woods in New Hampshire and attended by 45 countries.n3. The conference also set up the IMF (International Monetary Fund), the World Bank, and GATT( the General Agreement on Tariffs and Trade), later known as WTO, it is a world trading system.American EconomyGeneral Survey InflationnInflation is a general rise in the prices of goods ad services, the real or purchasing power value of money is reduced.nE.g. Three dollars are necessary today to buy what two dollars bought yesterday.American EconomyGeneral Surveyn DeficitnAmerican economy is deficit financing.n1. $23 billion during WWn2. $13 billion more during the 1930sn3. $200 billion more during WWn4. By 1998 the gross federal debt has reached $ 2 trillionn5. interest on the federal debt is over $ 150 billion a year.American EconomyIndustriesn1. Sectors of American Industriesn2. Distribution of industriesn3. Major Industrial Citiesn4. Factors of the Development of IndustriesAmerican EconomyIndustries -Sectors n1. Manufacturingn2. High Technologyn3. Heavy Industryn4. Aviationn5. Car IndustryAmerican EconomyIndustries -Sectorsn Manufacturing n The US manufacturing industry is the largest in the world, almost 3 times the size of Japan.n 1. one quarter of GNPn 2. one quarter of the national incomen 3. over 1/5 of the US work force American EconomyIndustries -Sectorsn High Technologyn1. one of the world leaders in the high technology, in the areas of telecommunication, electronics, computer chip research and manufacturing and software development.n2. US is the world major producer of high-speed computers. Apple Computer Corporation and International Business Machines (IBM)American EconomyIndustries -Sectorsn Heavy IndustrynHeavy industry around the Great Lakes depends heavily upon 3 resources.n1. iron ore from the Lake Superiorn2. coal supply from the Allegheny hills of western Pennsylvanian3. coal supply from west Virginian cheap water transportation provided by the Great Lakes and rivers.nThey constitute the base for the development of industry in the region.American EconomyIndustries -Sectorsn Aviationn1. US has the largest aviation industry in the world.n2. Major aircraft companies: Boeing, McDonald Douglasn3. Space shuttles still lead the worlds space navigations.American EconomyIndustries -Sectorsn Car Industryn 1. “Big Three” motor vehicle companies “ Ford” “General Motors ( GM) ” and “ Chrysler”n2. large, spacious and high-powered n3. the influx of Japanese cars and spare parts is the main cause of Americas $60 billion trade deficit with Japan.American EconomyIndustries -Distributionn Distribution of Industriesn1. Northeastern America , the most important industrial region. New England and Great Lakesn2. The South was traditionally an agricultural region because of its favorable climate for crops. The South developed its oil-refining and Petro-chemical industry. Meanwhile the textile industry and heavy industry also developed.American EconomyIndustries -CitiesnNew YorknPittsburghnChicagonDetroitnDallas and HoustonnSeattlenSan Francisco and Los AngelesAmerican EconomyIndustries -Citiesn New Yorkn1. the largest cityn2. the largest seaportAmerican EconomyIndustries -Citiesn Pittsburghn1. another important industrial city in Pennsylvanian2. it stands by the Ohio River which finally joins the Mississippi River.n3. it has developed a big steel-making industry, and is now the largest producer of iron and steel in the U.S.American EconomyIndustries -Citiesn Chicagon1. border on lake Michigan and the third largest city in US.n2. most important industrial and commercial city in the Middle West.n3. largest food-processing center n4. famous for its clothing industry.American EconomyIndustries -Citiesn Detroitn1. the worlds car capital It is the home of Ford, General Motors and Chrysler.n2. Detroit is also a seaportAmerican EconomyIndustries -Citiesn Dallas and Houstonn1. Both cities are situated in Texasn2. Dallas has become famous for its large oil industry.n3. Houston is also famous for its large oil industry and is famous for its important role in space navigation and oil industry.n4. The US National Aeronautics and Space Administration (NASA) is situated in Houston.American EconomyIndustries -Citiesn Seattlen1. one of Americas important seaport to handle trade with eastern countries.n2. a major center of the aircraft industry. American EconomyIndustries -Sectorsn1. Sparsely populatedn2. The fourth largest area and populationn3. Endless streams of immigrantsn4. Two World Warsn5. The US foreign trade policyAmerican EconomyAgriculturenContents:n1. Introductionn2. Distributionn3. Mechanization and Corporationsn4. Agricultural Problems and government policiesAmerican EconomyAgriculture IntroductionnOne of the most important industries of the U.S.nThomas Jeffersons words: “Cultivators of the earth are the most valuable citizensand they are tied to their country and wedded to its interest by the most lasting bonds.” American EconomyAgriculture Distributionn1. 20% of the land area of the US is farming landn2. Midwest for corn and soybeansn3. Southern states for cotton, tobacco, and rice .n4. Pacific coast for fruits, vegetables and wheat.American EconomyAgriculture Mechanization and Corporationsn1. based on free holdings or “ family farms”.n2. all the farms are highly mechanized and productive.n3. Standard of living of farmers is generally high.American EconomyAgriculturen Agricultural Problemsn1. overproductionn2. thin profitn3. international competitionn4. decrease in employed resourcesAmerican EconomyCorporations and Firmsn Government policies n1. Acreage limitationn2. Price Supportn3. Deficiency paymentn4. Financial HelpAmerican EconomyBanking and Finance