37 American Economy Facts: Trade, Imports, Exports, And Business!

Oluwatosin Michael
Jan 25, 2024 By Oluwatosin Michael
Originally Published on Jan 05, 2022
Do you know about American economy facts?
Age: 3-18
Read time: 7.9 Min

The world economy began to deteriorate after the war ended.

The United States saw a minor economic decline from 1918- 1919, but a mild rebound in the second half of 1919. The United States had a much worse recession in 1920 and 1921 when the world economy plummeted.

The US economy was substantially enhanced during this time, and its reliance on imports was reduced as a result of historically high levels of production in domestic industry and intensive agriculture. In both Europe and the United States, the Industrial Revolution resulted in increased median incomes and population. The United States' response to World War II was the world's most remarkable mobilization of an idle economy.

17 million new civilian employment were generated during the war, industrial productivity grew by 96%, and corporation earnings after taxes quadrupled. The United States provides two categories of economy fares: economy and basic economy. Although basic economy fares became less expensive, they may have restrictions on seat reservation, boarding, carry-on baggage, promotions, modifications, returns, elite points, and elite perks.

If you like this article, you may find it interesting to read these fun fact articles: American airline facts and American beech tree facts here at Kidadl.

History Of The American Economy

The United States' economy is the well-developed world's largest economy. It boasts the world's greatest nominal GDP and net wealth, as well as the second-largest purchasing power parity (PPP) economy after China.

  • In the 17th and 18th centuries, British colonies along the Eastern shore began the economic history of the United States. In the late 18th century, these 13 British colonies achieved independence from the British Empire and swiftly transitioned from colonial economies to agricultural economies.
  • In 180 years, the United States developed into a massive, interconnected, industrialized economy that accounted for roughly one-fifth of the global economy.
  • As a result, the United States GDP per capita converged with, and subsequently surpassed, that of the British Empire, as well as other countries with whom it had previously lagged economically. The economy kept salaries high, luring millions of immigrants from all over the world.
  • The United States was predominantly agrarian in the early 1800s, with more than 80% of the population engaged in agriculture.
  • The majority of production was focused on the initial phases of raw material processing, with timber and sawmills, textiles, and boots and shoes leading the way. The abundance of natural resources aided the 19th century economy's fast growth.
  • Recessions and financial crises were common in the 19th century. Following the Panic of 1837, a five-year downturn ensued, with bank failures and then-record-high unemployment rates.
  • It's impossible to compare the severity of current recessions to early recessions due to the profound changes in the economy over the ages. Recessions after WWII appear to have been milder than previous ones, but the reasons for this remain unknown.
  • Several rising countries have been working to narrow the economic gap with the United States since the '70s. Most of this is due to the relocation of manufacturing of commodities previously produced in the United States to nations where they could be produced for a low enough price to pay the cost of shipping plus a bigger profit margin. In other circumstances, certain nations have progressively learned to create products and services that previously could only be produced by the United States and a few other countries. In the United States, real income growth has stalled.
  • In 2001, the US economy went into recession, with an exceptionally sluggish job recovery, with the number of jobs not returning to February 2001 levels until January 2005.
  • Debt owed by the public, which is a measure of the national debt, has climbed steadily during the 21st century, growing from 31% in 2000 to 52% in 2009 and 77 % change of GDP in 2017, ranking it 43rd out of 207 nations.
  • Despite the fact that income inequality peaked in 2007 and decreased during the Great Recession, it remained the 41st highest among 156 nations in 2017. (i.e., 74 % of countries had an equal income distribution)

Important Data To Read And Understand

Here are some of the most important data of the American economic analysis. These many economic indicators assist us in determining the state of the US economy.

  • Nominal GDP is defined as an annualized metric that shows a country's output level at current prices, excluding inflation.
  • Real GDP achieves the same thing but without the inflationary impacts. It is used by economists to compare GDP across time.
  • GDP growth ratio is the ratio that compares the current quarter's or year's economic growth rate to the prior quarter's or year's economic growth rate.
  • $23.2 trillion in the gross domestic product (GDP) (nominal, third quarter of 2021). Agriculture, food services industries contributed $1.109 trillion to the US GDP in 2019, accounting for 5.2 % of total GDP.
  • Gross domestic product (GDP) growth rate: 2.1 % (annualized rate, third quarter of 2021)
  • Per capita real GDP: $58,730 (third quarter of 2021)
  • Gross domestic product: $21.3 trillion (2020)
  • The unemployment rate in the United States is at an all-time low in over two decades (3.9 %) as stagnant wages have been the focus of a lot of economic research. 2 % unemployment rate (November 2021)
  • The minimum wage in the country is $7.25 per hour.
  • Currency: US Dollar Euro-to-US Dollar conversion: $1.13 on average (Dec. 6, 2021)
  • The U.S economy has a trade deficit with China that grew by $3.4 billion to $31.5 billion. Imports grew from $3.2 billion to $42.6 billion, while net exports fell from $0.2 billion to $11.0 billion.
  • The budget deficit of the U.S economy in 2021 was $2.77 trillion, the second biggest on record, albeit down from the all-time high of $3.13 trillion in 2020.
  • Consumer spending in consumer goods in 2019 was $63,036, up 3.0% from the previous year. The Consumer Price Index (CPI-U) climbed by 1.8 % during the same time period, while typical pretax incomes increased by 5.4 %.
  • From 1959 through 2021, the money supply M0 in the United States averaged 938433.29 USD million.
  • People are more ready to borrow money to make large purchases, such as houses or vehicles if the interest rates are low. The United States has cut its interest rates by one percentage point, from one % to zero %.
According to recent trends, the U.S economy will spend 18 % of its real GDP on health care in 2020. Governments may boost taxes in response to rising health care expenses, stifling economic growth and harming both firms and individuals.

Employment And The American Economy

Small businesses account for almost 99 % of America's 28.7 million enterprises. Individual jobless costs are not difficult to calculate in American economic analysis. When someone loses their job, it typically affects their way of life right away. Prior to the Great Recession, the average savings rate in the United States had been drifting toward zero (and occasionally below).

  • The Federal Reserve Bank affects employment and inflation by influencing the money and availability of credit in the economy when it implements monetary policy.
  • Even for people who qualify for unemployment benefits and other types of government aid, these payments are frequently insufficient to replace half or less of their usual income.
  • This implies that these folks are consuming significantly less than normal based on economic analysis. On the other side, the economic consequences might go beyond lower consumption. In need, many people will turn to their retirement funds, but doing so has long-term consequences.
  • According to labor statistics, labor or human capital may be utilized in the process of manufacturing a product or delivering a service within an economy, and each element of the production is used differently.
  • The contrast between labor and capital may be due to the fact that labor statistics traditionally refers to blue-collar workers, whereas human capital refers to white-collar employees.
  • The capacity of employees to fulfill the demand or needs of the labor force is one aspect of employability that has a direct influence on it.
  • It necessitates ongoing skill upgrading, particularly in metropolitan areas that face fast technological and organizational change, in order to avoid human capital or labor force obsolescence.

Assets And Resources

According to economic analysis, annual household net wealth in the United States reached a record high of $99 trillion in Q4 2017, up to $5.2 trillion from 2016. This rise reflects improvements in both the stock market and the housing market.

  • Since Q4 2012, this metric has been breaking records. Families in the bottom quarter had no net worth, while those in the 25th to 50th percentile had such an average net worth of $40,000.
  • The disparity in wealth is larger than inequality of income, with the wealthiest 1% of families possessing around 42% of net worth in 2012, compared to 24% in 1979.
  • According to a Federal Reserve study released in September 2017, wealth inequality has reached new highs, with the top 1% controls 38.6% of the country's wealth in 2016.
  • According to a June 2017 analysis by the Boston Consulting Group, by 2021, 1% of Americans would own 70% of the country's wealth.
  • Eighty % change of all financial assets is held by the richest ten % of the population.
  • Over a third of the world's affluent people live in the United States (as of 2009). In 2008, the Economist Intelligence Unit reported that the United States had 16,600,000 millionaires. Furthermore, Americans account for 34% of the world's billionaires (in 2011)

Here at Kidadl, we have carefully created lots of interesting family-friendly facts for everyone to enjoy! If you liked our suggestions for American economy facts, then why not take a look at American prison facts or American gothic facts

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Written by Oluwatosin Michael

Bachelor of Science specializing in Microbiology

Oluwatosin Michael picture

Oluwatosin MichaelBachelor of Science specializing in Microbiology

With a Bachelor's in Microbiology from the Federal University of Agriculture, Abeokuta, Ogun State, Oluwatosin has honed his skills as an SEO content writer, editor, and growth manager. He has written articles, conducted extensive research, and optimized content for search engines. His expertise extends to leading link-building efforts and revising onboarding strategies. 

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