The United States of America. Chapter 11 Economy The United States of America

The United States of America

Chapter 11

Economy


Foreign Language Teaching and Research Press

Think about these questions before we start:

What industrial developments took place during the colonial period of America?

How did the Civil War affect the American economy?

Why does America try to reduce trade barriers?

Warming-up Activities


Contents

History of American Economy

Current American Economy

General IntroductionⅠ

Ⅱ

Ⅲ


US—the current industrial, economic and technological giant ranking first in computer technology, space

technology, nuclear energy, and electronics, etc.;

producing a major portion of the world’s machinery, automobiles, oil, electrical energy, and chemicals.

Mixed economy emphasizing private ownership federal government—regulating businesses

• anti-trust laws

Ⅰ General Introduction


Private businesses produce most goods and services. Two thirds of the output goes to individuals; One third is bought by government and

business.

“Consumer economy”

Ⅰ General Introduction


Ⅱ History of American Economy

The Colonial Period

Since American Independence

The 20th Century

1

2

3


1. The Colonial Period

Massachusetts—settled by Pilgrims to escape religious persecution

Other colonies—like Virginia and Pennsylvania, founded as business ventures contribution to England’s colonizing process

of the would-be United States charter companies King provided a charter or grant conferring

economic rights as well as political and judicial authority



Mayflower, the ship that carried the Pilgrims from England to Plymouth, Massachusetts, where they established the first permanent New England colony in 1620.



English investors turned over colonial charters to the settlers.

enormous political implications

Colonists were left to build their own lives, communities, and economy, that is, to construct their new nation



appearance of sawmills (锯木场 ) and gristmills (磨房 )

shipyards—building fishing fleets and trading vessels

small iron forges (冶炼厂 )

Secondary industries (二级产业 )


Gristmill Iron forge



Clear regional patterns of development by the 18th century: New England—ship-building and sailing; Maryland, Virginia, and Carolinas—tobacco,

rice and indigo (靛蓝属植物 ); New York, Pennsylvania, New Jersey and

Delaware—shipped crops and furs; The field was open for entrepreneurs (企业家、创业者 ) among the colonists to establish themselves.



Disputes over taxation and other matters with Britain: Americans—modification (减轻 ) of taxes and

regulations; demand for more self-government Mounting quarrel—leading to war against the

British and to independence for the colonies

American Revolution: bolstered (支持、支撑 ) by an emerging middle class rallying cry—“inalienable rights to life, liberty,

and property”



2. Since American Independence

U.S. Constitution established the nation as a unified market. no tariffs or taxes on inter-state commerce; Federal government could regulate

commerce with foreign nations and among the states, establish uniform bankruptcy laws, create money and regulate its value, fix standards of weights and measures, establish post offices and roads, and fix rules governing patents (专利权、专利品 ) and copyrights.

“intellectual property”


Alexander Hamilton’s economic development strategy


nurture infant industries by providing overt subsidies (公开的补贴 )

impose protective tariffs (保护性关税 ) on imports

create a national bank

assume public debts

Alexander Hamilton was the first United States Secretary of the Treasury, a Founding Father, economist, and political philosopher.


The new government did make tariffs an essential part of American foreign policy.

President Jackson opposed to Hamilton’s national bank.

When elected for a second term, Jackson opposed renewing the bank’s charter.

Businesses panicked in both 1834 and 1837.



The Industrial Revolution By 1860, one third of the nation’s income

came from manufacturing;

Cotton cloth production was the leading industry;

Urbanized industry—limited to the Northeast;

Immigrant workers

• Between 1845 and 1855, some 300, 000 European immigrants arrived annually.



Urban Industrialization Textile Plant



The South—rural and dependent on the North for capital and manufactured goods

Economic policy under President Lincoln:


In 1861, adoption of a protective tariff

In 1862, the first Pacific railroad was chartered.

In 1863 and 1864, a national bank code ( 银行代码 ) was drafted.


Northern victory in the Civil War—ensured the destiny of the nation and its economic system slavery system was abolished, making

southern cotton plantations less profitable; Northern industry surged ahead:

• Industrialists’ domination in social and political affairs

• Disappearance of the southern planter aristocracy (贵族 )

“Second industrial revolution”



“Second industrial revolution” —an explosion of new discoveries and inventions: The discovery of oil; The development of typewriter; The invention of telephone, phonograph (速记法 ), and electric light;

Refrigerated railroad cars came into use; Cars were replacing carriages and people

were flying in airplanes by the dawn of the 20th century.



3. The 20th Century

Experienced a period of prosperity in the early 20th century

Suffered Great Depression in the 1930s Wall Street Crash in October 1929


3. The 20th Century

President Roosevelt’s New Deal (新政 )—intervention of the government

ensure that economic opportunities are fair and accessible to the people;

prevent flagrant (公然的 ) abuses of the system;

Dampen (抑制 ) the effects of inflation;

stimulate growth.

His New Deal was popular with the electorate (选民 ) and led to a successful reelection in 1936.


Reagan Administration’s new monetarist ( 货币主义者 ) policies in the early 1980s control over government spending deficits cutting taxes to enhance economic

development raise of interest rates

George H. W. Bush—slow economic recession

Clinton—economic recovery Appearance of new tycoons ( 企业界或政界巨头 )—Bill Gates

3. The 20th Century


II Current American Economy

Agriculture 1

Manufacturing Industry2

Service Industry3

High-tech Industry4

Foreign Trade5


1. Agriculture

Conditions for developing agriculture: vastness of the land generosity of nature rainfall, rivers and underground water allowing

for irrigation where necessary

Average American farm—462 acres (187 hectares)


Success of agriculture large capital investments highly trained labor new methods for raising

crops

1. Agriculture

Modern farming disease and drought

resistant seeds fertilizers and

pesticides space technology

utilization


1. Agriculture


“Agribusiness” a variety of farm businesses and structures

• from small, one-family corporations to huge conglomerates（联合企业 : 由许多不同行业的公司组成的有不同经营范围的大企业） or multinational firms

American farm’s low-cost output

One-third of crops for export—Europe, Asia, Africa and Latin America

Agricultural imports lag far behind, leaving a surplus in the agricultural balance of trade

1. Agriculture


Farmers—not work on the farms full-time 45 percent with other occupations 240, 000 tenant farmers—rent land for cash or

pay the owner a share of the crops they grow migrant workers—hired only for a specific chore

Agriculture remains the foundation upon which American well-being and prosperity are based.

1. Agriculture


2. Manufacturing Industry

Large manufacturing industries employing more than 24 million workers

Highly developed military industryAuto companies—Ford, General Motors

and ChryslerBoeing Aircraft Company—commercial

airlinersOther industries: food, clothing, etc.

America has formed an industrial system with large productivity.


2. Manufacturing Industry


Division of Manufacturing Activities

The East North Central the leading region over 25% of manufacturing capacity motor vehicles and other transportation equipments, non-

electrical machinery, and fabricated metals

The Middle Atlantic region occupying the second place almost 20% of the total value added chemicals and machinery, both electrical and non-

electrical

The Pacific coast region dominated by the manufacturing activities of California the third place with about 15% of the total value added Transportation equipments, food products, and electrical

and electronic equipments


The South Atlantic region the fourth leading region over 10% of the total US manufacturing

output textiles, chemicals, tobacco products, and

apparel

The West South Central and the East South Central regions about 15% of the total national output chemicals, food products, electrical and

electronic equipments, and non-electrical machinery



The West North Central, New England and the Mountain states region—remaining 15% of the national output New England—electrical and non-electrical

machinery, and fabricated metals

The West North Central states—machinery and food products

The Mountain states—food products, primary metals and non-electrical machinery



3. Service Industry

Tremendous growth in employment in the service sector since the 1970s three categories:

• services for the affluent—commercial banking, life insurance, real estate and law services

• welfare services—health care, education, government and social services

• services provided by the poor—services to buildings and dwellings, retail services


3. Service Industry

Advanced service industry


4. High-tech Industry

High-tech industries ranking first in the world

More emphasis on space technology, electronics, chemicals and computing

Successful flight of the space shuttle

Leading computer companies in the world

Leading engineering and information technology


4. High-tech Industry

美国计算机协会（ Association of Computing Machinery，简称 ACM）是一个国际性的科技教育组织，是世界上第一个科学性及教育性计算机学会。 ACM致力于提高信息技术在科学、艺术等各行各业的应用水平。


5. Foreign Trade

US foreign trade plays a significant role in the economy

Trade pattern: from domestic-oriented to internationally-oriented

Reducing trade barriers ( 贸易壁垒 ) and coordinating the world economic system

Promoting bilateral ( 双边的 ) and regional trade to enhance domestic stability and loyalty of allies


Exports—about 10% of the world’s total

Most important products for export —office machines, household appliances, chemicals, metal manufactures, petroleum products, etc.

Ranking first in export of agricultural products

Leading exporter of civil aircraft, service, technology and weapons

5. Foreign Trade


America—biggest percentage of imports in the world import capacity—15% of the world’s total major products for imports—tin, nickel, etc.

Industries—built around a continuous supply of essential raw materials

The largest single-country provider of trade-related assistance

5. Foreign Trade

Growth and decline of the U.S. foreign trade volume determine the trend of the world economy.


Summary and Reflection

Relate to what you have learned in Chapter 10, state your own understanding of the following questions:

How did the US Constitution lay groundwork for America’s economic development?

Cite examples to illustrate the role of government intervention in America’s economic development.

How do you think about the relationship between the US economy and the global economy?


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The United States of America. Chapter 11 Economy The United States of America