TIANJIN FOREIGN STUDIES UNIVERSITY

American CultureAmerican CultureUnit Eight

UNIT 8

The American The American Economy and WorkEconomy and Work

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The business of America is business.

--Calvin Coolidge

My father taught me to work, but not to love it.

--Abraham Lincoln

The American Economy and WorkThe American Economy and Work

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The American Economy and WorkThe American Economy and Work

The economic system of the United States is often referred to as the free market system. Yet America is far from being a “free enterprise” market. In its pure form, a free market economy exists only when market forces are able to operate without interference from the government. Such is not the case in the United States, where many restraints to free economic competition have been instituted and private businesses are guided by government that regulates the distribution and consumption of goods and services. In practice, the current form of economy in America is a mixed economy, in which private enterprises and state-owned businesses compete and operate within the limits set by the government.

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I. The Role of the American Government I. The Role of the American Government in the Economyin the Economy

A. A. Direct servicesDirect services

B. B. Fiscal policyFiscal policy

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C. C. Monetary policyMonetary policy

D. D. Direct assistanceDirect assistance

I. The Role of the American Government I. The Role of the American Government in the Economyin the Economy

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II. A Historical ReviewII. A Historical Review

A. An agrarian America (1776-1880s)

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II. A Historical ReviewII. A Historical Review

B. An industrial America (1890-1945)1890: The output of American factories exceeded that of America farms.1913: More than 1/3 of the world’s leading industrial production came from America.1945: The US had the greatest productive capacity in the world and became the world’s leading industrial and manufacturing country. Factors that contributed to the rapid industrial growth in the US:1. Abundant natural resources2. Large labor supply brought about by waves of immigration3. American system of mass production—the assembly line4. Development of transportation5. Sufficient capital6. Social and political climate in favor of economic development

A. The historical development of the print media

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II. A Historical ReviewII. A Historical Review

C. A postindustrial America One of the most significant changes in American economy since WWII has been a shift away from the production of goods to the delivery of services. 1950: 40% of American jobs were in the service industry. 1998: 80% As the manufacture of information and knowledge has dominated American economy, the United Sates has moved into a postindustrial era, in which service industries provide a large proportion of jobs and generate a vast amount of revenue for individuals, businesses, and the government.

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III. The Framework of American EconomyIII. The Framework of American Economy

AA BB CC

Corporations Small businesses

The public sector

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IV. Contemporary Trends and Problems in IV. Contemporary Trends and Problems in American EconomyAmerican Economy

A. Trends

3

1. The shift to services2. Corporate mergers and downsizing3. Growth of small business

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IV. Contemporary Trends and Problems in IV. Contemporary Trends and Problems in American EconomyAmerican Economy

B. Problems

4

1. Trade deficit2. Unemployment3. The underground economy The underground economy or hidden economy refers to the exchange of goods and services and the generation of income that go unreported to the government.

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V. The Changing American WorkforceV. The Changing American Workforce

AA. The workforce composition in the 1990s

B. Downsizing B. Downsizing and temporary and temporary workersworkers

C. A

multicultural

workforce

Three significant changes: 1. Manufacturing-based to service-oriented 2. A sharp increase of women in the workforce 3. Increase of the average age of the workforce

In the 21st century nonwhites and In the 21st century nonwhites and immigrants will constitute the largest share immigrants will constitute the largest share of the increase in the American workforce. of the increase in the American workforce. Some businesses in America now provide Some businesses in America now provide English as a second language course at the English as a second language course at the workplace and others conduct “diversity workplace and others conduct “diversity training” to promote understanding among training” to promote understanding among the different racial and ethnic groups that the different racial and ethnic groups that now work together. Many believe that this now work together. Many believe that this multicultural workforce will ultimately help multicultural workforce will ultimately help the United States compete in the global the United States compete in the global marketplace with their wide range of marketplace with their wide range of cultural and educational backgrounds.cultural and educational backgrounds.

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