1. The United States of America

2. Chapter 11 Economy The United States of America

3. 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

4. Foreign Language Teaching and Research Press Contents History of American Economy Current American Economy General Introduction Ⅰ Ⅱ Ⅲ

5. Foreign Language Teaching and Research Press  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

6. Foreign Language Teaching and Research Press  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

7. Foreign Language Teaching and Research Press Ⅱ History of American Economy The Colonial Period Since American Independence The 20th Century 1 2 3

8. Foreign Language Teaching and Research Press 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

9. Foreign Language Teaching and Research Press 1. The Colonial Period Mayflower, the ship that carried the Pilgrims from England to Plymouth, Massachusetts, where they established the first permanent New England colony in 1620.

10. Foreign Language Teaching and Research Press 1. The Colonial Period  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

11. Foreign Language Teaching and Research Press 1. The Colonial Period  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)

12. Foreign Language Teaching and Research Press GristmillIron forge 1. The Colonial Period

13. Foreign Language Teaching and Research Press  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. 1. The Colonial Period

14. Foreign Language Teaching and Research Press  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” 1. The Colonial Period

15. Foreign Language Teaching and Research Press 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”

16. Foreign Language Teaching and Research Press  Alexander Hamilton’s economic development strategy 2. Since American Independence  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.

17. Foreign Language Teaching and Research Press  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. 2. Since American Independence

18. Foreign Language Teaching and Research Press  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. 2. Since American Independence

19. Foreign Language Teaching and Research Press Urban IndustrializationTextile Plant 2. Since American Independence

20. Foreign Language Teaching and Research Press  The South—rural and dependent on the North for capital and manufactured goods  Economic policy under President Lincoln: 2. Since American Independence 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.

21. Foreign Language Teaching and Research Press  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” 2. Since American Independence

22. Foreign Language Teaching and Research Press  “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. 2. Since American Independence

23. Foreign Language Teaching and Research Press 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

24. Foreign Language Teaching and Research Press 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.

25. Foreign Language Teaching and Research Press  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

26. Foreign Language Teaching and Research Press II Current American Economy Agriculture 1 Manufacturing Industry 2 Service Industry 3 High-tech Industry 4 Foreign Trade 5

27. Foreign Language Teaching and Research Press 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)

28. Foreign Language Teaching and Research Press  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

29. Foreign Language Teaching and Research Press 1. Agriculture

30. Foreign Language Teaching and Research Press  “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

31. Foreign Language Teaching and Research Press  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

32. Foreign Language Teaching and Research Press 2. Manufacturing Industry  Large manufacturing industries employing more than 24 million workers  Highly developed military industry  Auto companies—Ford, General Motors and Chrysler  Boeing Aircraft Company—commercial airliners  Other industries: food, clothing, etc. America has formed an industrial system with large productivity.

33. Foreign Language Teaching and Research Press 2. Manufacturing Industry

34. Foreign Language Teaching and Research Press 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

35. Foreign Language Teaching and Research Press  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 Division of Manufacturing Activities

36. Foreign Language Teaching and Research Press  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 Division of Manufacturing Activities

37. Foreign Language Teaching and Research Press 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

38. Foreign Language Teaching and Research Press 3. Service Industry Advanced service industry

39. Foreign Language Teaching and Research Press 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

40. Foreign Language Teaching and Research Press 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。

41. Foreign Language Teaching and Research Press 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

42. Foreign Language Teaching and Research Press  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

43. Foreign Language Teaching and Research Press  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.

44. Foreign Language Teaching and Research Press 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?

45. The United States of America