Us Economy 2004-2007

An Outlook of U .S Economy

The Economy of the United States can be classified as the "capitalist economy . The most prominent characteristic of the capitalist economy is the control of few people on a large amount of Capital . These people are also responsible for taking important economic decisions

With the changing international circumstances the Governments of the world including United States felt the need of restricting the use of power of a specific group of people for their own commercial interests . This intervention resulted in shape of the American economy

which can described as a "mixed " economy , with government playing an important role along with private enterprise

Although Americans often disagree about exactly where to draw the line between their beliefs regarding , both free enterprise and government management , the mixed economy they have developed has been remarkably successful

Basic Ingredients of the U .S . Economy

The natural resources are considered as the most important ingredient of a nation 's economic system . The United States is blessed with enormous reserves of minerals . The fertile soil and the moderate climatic conditions effectively eke the farming process . Sea routes are extended on the routes through the coastlines on both the Atlantic and Pacific Oceans , as well as on the Gulf of Mexico . The inland lakes along the U .S . b with Canada provide additional shipping access . These water routes have increased the access to different markets . Through these routes it has become easier to treat America 's 50 individual states together in a single economic unit

The labor plays vital role in the growth of an economy . Higher level of working population is considered as an important indicator of a progressive economy

The labor market of the U .S has always remained competitive due to an abundant supply of productive labor . A unique characteristic of the labor force is diversity . The workforce constitutes the immigrants from Europe , their immediate descendants , or African-Americans whose ancestors were brought to the Americas as slaves . The 20th century American labor force constituted Asians and Latin Americans as the major part . This supply of the immigrants in the American job market also resulted in some periods of high unemployment . Many of these immigrants provide their services on relatively lower wages as compare to the native citizens . With the abundant supply of labor and the factors of production the economic growth multiplied increasing the chances for immigrants to find more job opportunities (Conte Karr , 2001

American economy was facing boom before being hit by the events of 9 /11 .The economy had fastest growth rate and the lowest unemployment rate which was kept low for thirty years to a level of 3 .8 in 2001 but after 9 /11 the unemployment rate rose to 6 .4 in 2003 more than a million jobs were loss lost during that period . The Government has applied different policies in to address the issues facing the economy . Federal govt . has been trying to stable the economy by using cutting of taxes...