The United States Economy
The economic system of the United States can be described as a capitalist mixed economy, in which corporations, other private firms, and individuals make most microeconomic decisions, and governments prefer to take a smaller role in the domestic economy, although the combined role of all levels of government is relatively large, at 36% of the Gross Domestic Product (GDP). Most businesses in the U.S. are not incorporated and do not have a payroll but are simple sole proprietorships.[ The U.S. has a smaller social safety net than that of other developed countries, and regulation of businesses is slightly less than the average of developed countries. The largest sector in the United States economy is services, which employs roughly three quarters of the work force.[50]
The economy is fueled by an abundance in natural resources such as coal, petroleum, and precious metals. However, the country depends on foreign countries for much of its energy. In agriculture, the U.S. is a top producer of corn, soy beans, rice, and wheat, with the Great Plains labeled as the "breadbasket of the world" for its tremendous agricultural output and productivity.[57] The U.S. has a large tourist industry, ranking third in the world, and is also a major exporter in goods such as airplanes, steel, weapons, and electronics. Canada accounts for 19% (more than any other nation) of the United States' foreign trade, followed by China, Mexico, and Japan.
The long-term trend for wages of middle-income Americans has largely been stagnant since the 1970s and fallen for low-income earners, despite substantial gains in hourly labor productivity[62][63]. Illegal immigration is suspected of depressing wages of the poorest one-tenth of the workforce by 7.4%[64], with some industries such as meatpacking and agriculture being completely dependent on undocumented-workers[65]. A report from the U.S. Labor Department in 2005 indicated that wages are at their lowest percentage of national G.D.P. on record while corporate profits are at their highest since the 1960s[].
US workers enjoy unparalleled access to consumer goods. There are more radios and televisions per capita than anywhere else in the world. [9]. Internet penetration and PCs are also quite high.
Economic activity varies greatly across the country. For example, New York City is the center of the American financial, publishing, broadcasting, fashion, advertising industries, and the seat of the United Nations, while Los Angeles is the most important center for film and television production. The San Francisco Bay Area is a major center for technology. The Midwest is known for its reliance on manufacturing and heavy industry, with Detroit serving as the historic center of the American automotive industry, and Chicago serving as the business and financial capital of the region. The Southeast is a major area for agriculture, tourism, and the lumber industry, and, because of wages and costs below the national average, it continues to attract manufacturing.