unit5 American Economy

nullUnit 5 American EconomyUnit 5 American EconomyIntroduction Introduction Some Western economists say: “When the United States sneezes, the rest of the world catches cold.” Economic influence of the US to other countries nullthe biggest industrial country in the world. both an economic and technological giant less than 6% of the world’s population produces about 25% of the total world output. 40% of the world's billionaires are American.nullContentsContentsⅠⅡⅢIndustrial Revolution in AmericaIndustrial Revolution in AmericaAfter the American Revolution, America was principally an agricultural country Positive factors: Adam Smith The Wealth of Nations (1776) Industrial Revolution in EnglandAlexander HamiltonAlexander HamiltonEconomic development strategies 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 (国债) Six developments of the Industrial Revolution in USSix developments of the Industrial Revolution in US1. The introduction of the factory system Samuel Slater, the “Father of the American Industrial Revolution”, built a cotton cloth factory in 1793 from his memory. His success turned the north-eastern region into a manufacturing center.null2. The “American system” of mass production 1) firearms industry requiring precision engineering 2) Eli Whitney manufacturing rifles & interchangeable parts inventing the cotton gin to remove the seeds from the bolls of cotton quickly null3) Henry Ford: introducing the "moving assembly" line in 1913 4) Introduction of the concepts of "scientific management" : helping to lower the costs of production still further null3. The application of new technologies to industrial tasksNew inventionsnull4. the emergency of the bank and the corporation, which facilitated the growth of industry. The first American commercial bank appeared in the 1780s. Not until 1863 did the US create a truly national banking system with a standard paper currency Differences of the three: Sole proprietorship The partnership CorporationnullCompared with the sole proprietorship(个体经营) and the partnership（合伙经营）, the corporation may survive the death of its founder or founders（股份（有限）公司在其创业者去世后仍然可以继续下去）. Because it could draw on a pool of investor, it is a much more efficient tool for raising the large amounts of capital needed by expanding business.（由于它可以吸引众多投资者，可以很有效地在业务发展时筹到资金。） And it enjoys limited liability, so inventors only risk the amount of their investment and not their entire assets.（它具有债务有限的特点，这样投资者的风险仅限于其投资的数额，不涉及其全部财产）null5. The construction of railroads marked the start of a new era for the United States. The census of 1890 showed that the output of factories surpassed that of farms.null6. Rise and decline of a succession of industries in 20th century and the transference of employment from manufacturing industries to Service IndustriesService industriesService industriesIndustries that sell a service rather than make a product, which now dominate the economy. Service industries range from banking to telecommunications to the provision of meals in restaurants. As more and more people are employed in service industries in the US, it is sometimes said the US has moved into a “post-industrial era”(后工业时代)Free EnterprisesFree EnterprisesLaissez-faire Era: economic freedom of capitalism Capitals Stock exchange Loan from banks Problems poor working conditions discrimination in employment monopoly of production and prices and eliminating competitionThe Roots of AffluenceThe Roots of AffluenceThe vast dimensions and ample natural resources Enough workers and consumers Entrepreneurial spirit Reluctant government’s interferencenull Essentially the American Dream is an idea which suggests that all people can succeed through hard work, and that all people have the potential to live happy, successful lives. American dreamRecent news titles from NY TimesRecent news titles from NY TimesThe Fraying Ties Between Education and Jobs Consumers Borrow Again, but Shy Away From Credit Cards Retail Sales Rise 1%, but Consumer Confidence Wanes Wall Street Lower on Disappointing Economic News U.S. Trade Deficit Rose 15% in January on Higher Oil Prices Applications for Unemployment Benefits Rose Last Weeknullnullnullnullnullnullnullnull 1. The importance of agriculture and the extolling comments to American farmers 1) agriculture and its related industries serve as the foundation of American economic life, accounting for a larger portion of the U.S.A's GNP 2) "Cultivators of the earth are the most valuable citizens. They are the most vigorous, the most independent, the most virtuous, and they are tied to their country and wedded to its interests by the most lasting bonds." (Thomas Jefferson) 3) spirit of individualism and egalitarianism American Agriculturenullnull  2.  Success of Agriculture 1) Produces as much as half of the world's soybeans and corn for grain, and from 10 to 25 percent of its cotton, wheat, tobacco and vegetable oils. 2) Agribusiness 3) High living standards of American farmers nullnullnull3. Reasons for agricultural development 1) vastness of the nation 2) generosity of nature: abundant land and ideal weather 3) readiness of many farmers to adopt new technology 4. Dark side: 1) go through prosperity and recession 2) passive influence upon environment nullnullnull