1. TIANJIN FOREIGN STUDIES UNIVERSITY American Culture Unit Eight UNIT 8 The American Economy and Work

2. Page  2 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22  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 Work

3. Page  3 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 The 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.

4. Page  4 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 I. The Role of the American Government in the Economy A. Direct services B. Fiscal policy

5. Page  5 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 C. Monetary policy D. Direct assistance I. The Role of the American Government in the Economy

6. Page  6 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 II. A Historical Review A. An agrarian America (1776-1880s)

7. Page  7 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 II. 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 resources 2. Large labor supply brought about by waves of immigration 3. American system of mass production—the assembly line 4. Development of transportation 5. Sufficient capital 6. Social and political climate in favor of economic development A. The historical development of the print media

8. Page  8 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 II. 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.

9. Page  9 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 III. The Framework of American Economy A A B B C C Corporations Small businesses The public sector

10. Page  10 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 IV. Contemporary Trends and Problems in American Economy A. Trends 3 1. The shift to services 2. Corporate mergers and downsizing 3. Growth of small business

11. Page  11 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 IV. Contemporary Trends and Problems in American Economy B. Problems 4 1. Trade deficit 2. Unemployment 3. 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.

12. Page  12 TIANJIN FOREIGN STUDIES UNIVERSITY 2015/11/22 V. The Changing American Workforce A A. The workforce composition in the 1990s B. Downsizing B. Downsizing and temporary and temporary workers workers 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 immigrants will constitute the largest share of the increase in the American workforce. Some businesses in America now provide English as a second language course at the workplace and others conduct “diversity training” to promote understanding among the different racial and ethnic groups that now work together. Many believe that this multicultural workforce will ultimately help the United States compete in the global marketplace with their wide range of cultural and educational backgrounds.

13. TIANJIN FOREIGN STUDIES UNIVERSITY