The United States of America is a union of fifty states in North America. It is ranked third world’s largest economy state. The United States of America operates as a free market in consumer goods and services. Here the government imposes regulations on the goods to protect them.
The Real insight
- The US has a Gross Domestic Product of around $21.34 trillion (annualized nominal rate for second-quarter 2019)
- It has a GDP Growth rate of 2.1% (annualized rate for the second quarter of 2019)
- The US has a GDP Per Capita of $57,800
- It also has a Gross National Income of around $19.872 trillion PPP dollars by 2017.
- The unemployment rate in the US is around 3.7% by July 2019
- The minimum wage is approximately $7.25 per hour
- The currency used in the US is the United States Dollar
- Euro to Dollar conversion is $1.11 as by August 2019
- The inflation rate is around 2.1%
The Budget of the U.S. government refers to the total federal income and spending.
The government receives most of its revenue from taxes. The tax collected is spent on three main expenses that are, military spending, security and medical.
When the government spends too much money than its revenue, then there becomes a budget deficit. The federal has had a budget deficit each and every year since 1999 and therefore each year’s budget deficit has been added to the debt.
The U.S government has a debt of around $22 trillion. The debt is more than the country’s entire economic output.
The United States economic score is 76.8 making it’s economy the 12th freest in the 2019 index.
Its overall score has increased by 1.1 points, with significant improvements in scores for tax burden and government integrity far outpacing modest declines in fiscal health, labor freedom, monetary freedom, and trade freedom.
Its economic freedom ranking has risen six places, and its overall score in the 2019 index is the highest recorded since 2011.
This improvement is due to the impact of major regulatory and tax reforms on economic growth, investment and business confidence.
The rate of unemployment has significantly dropped in 2018 since 1969. The government has enacted new protectionist policies that have raised tariffs and disrupted established manufacturing supply chains are beginning to affect consumer prices and investment decisions.
The government of the United States is really doing well in economic development by creating job opportunities for its people.
It has also come up with proper policies that help prevent the high rate of inflation and hence protecting the value of the United States Dollar.
This gives hope that in the next 10 years, the U.S. will be at a better place economically than it is now.