Economy of the United States SSWG8 The student will describe the interaction of physical and human systems that have shaped contemporary Canada and the United States. c. Explain the reasons for the population distribution in Canada and the United States. f. Analyze how transportation and communications improvements led to the growth of industry in the United States and the consequences of such growth especially environmentally for both Canada and the United States.

Market Economy Characteristics  Private property ownership.  Freedom of enterprise and Choice  Motive of self- interest Competition  System of markets and prices  The market addresses consumer wants

Market Economy Advantages  Individuals can own businesses and resources  Individuals can buy and sell goods and services  Competition in the market leads to greater choices  Consumers play a great role in the economy

Market economy Disadvantage  The critical role of the consumer in the market can create a tremendous divide between the poor and the wealthy

Multinational Corporations  The U.S. is home to many multinational corporations: A. Nike, Adidas B. Starbucks C. Wal-Mart D. McDonald’s, Burger King, KFC E. Hilton

NAFTA  The United States, Canada, and Mexico are part of an economic union called NAFTA, The North American Free Trade Agreement.  This agreement eliminates tariffs, or taxes, on imports between these three countries.  Mexico, US, and Canada

NAFTA continued  Advantages: 1. Offer products at lower prices to US  Due to no trade barriers 2. Has brought lots of wealth to the US  Disadvantages: 1. Businesses has moved to Mexico & Canada  Cheaper labor 2. Hurt lots of factory jobs in US

United States wealth is credited to its: 1. Agriculture 2. Industry 3. Energy and minerals

United States’ Economy continued  Agriculture and industry created a strong economy and a high standard of living  Standard of living: a measurement of a person’s living conditions in a country  Includes wealth, nutrition, life expectancy, education, and job opportunities

South Economy  Historically, the South had an agricultural economy  Poorest region of the U.S. after the Civil War  The South lacked railroads & industry that was thriving in the Northeast

South Economy continued  Economies in the South focus on raw materials  Major source of lumber  Forestry supports paper, pulp, & furniture industries  Cotton & tobacco are still major crops  Cotton supports textile industry

South Economy continued  1960’s---South began to attract new industry for several reasons:  No unions (1)  Cheap wages (2)  Cheap land (3)  Favorable laws & regulations (4)  Factories in better condition (5)  Example: foreign car companies

Northeast Economy  Political & financial center  Most industrialized region of the U.S.  Why industry developed in the N.E.?  Country’s 1 st industries developed here in the 19 th Century (1)  Influx of European immigrants in 19 th Century helped promote industry (2)

Northeast Economy continued  Good transportation connections were important to N.E. development (3)  N.E. provides good port sites for shipping/fishing industry (4)Erie Canal

Midwest Economy  Major farming region & leading producer of industrial goods  Midwest’s land is arable for growing crops  Some areas specialize in growing crops  Midwest sometimes called the “Nation’s Breadbasket”  Much that is grown here is exported around the world

Midwest Economy continued  Midwest has a growing season that lasts about 200 days  Growing season: average number of days between the last frost of Spring & the first frost of Winter  Midwest sometimes called the Dairy Belt  Minnesota, Wisconsin, Michigan  Wisconsin---one of the main producers of cheese, milk, other dairy products  Grass grows quickly here which produces feed for dairy cattle

Midwest Economy continued  Corn/Grain Belt  Although corn is produced in mass quantity, it’s not the only crop grown in the Midwest  Soybeans, wheat, etc.  Ethanol fuel  Using corn to produce ethanol fuel  Arguments for both sides:  Ethanol seen as more fuel efficient for cars  Corn production is up in the Midwest, but more farmers are growing corn for ethanol rather than food consumption

West Economy  Mining is a key economic activity in the Rocky Mts.  Arizona, New Mexico, Utah are leading copper producing states  Tourism imp. economic activity  All of California, Yellowstone, Grand Canyon  Film industry, forestry, farming

West Economy continued  Silicon Valley  Term originated due to the numerous semiconductor/computer technology businesses in the area  Located south of San Francisco  Imp. to economy due to the major impact the computer has on the world