The North American Economy: Course Outline

• Overview of the US: geography, population, economy

• Economic history through to the end of post-WWII boom

• The rise of neo-liberalism in the US

• The “Great Moderation” and economic boom from the early 1990s to the mid-2000s

• The financial and economic crisis: origins and first results

• The financial and economic crisis: longer term results

• NAFTA, foreign trade policy, the US in the world economy

• Poverty, social inequality and the 99%

• The Canadian Economy, OCAs, a different banking system

The USA: a Continental Economy

Major cites (metropolitan areas) in millions (est. 2013)

New York-Newark-New Jersey: 19.9

Los Angeles-Long Beach-Anaheim: 13.1

Chicago-Naperville- Elgin: 9.5

Dallas-Fort Worth-Arlington: 6.8

Houston-The Woodlands-Sugar Land: 6.3

Philadelphia-Camden-Willmington: 6.0

Source: US Bureau of Census estimates, etc, from Wikipedia

Strengths of the US Economy

1) Capital stock in the US and overseas

2) Natural resources: fuel (gas, coal), metals, farm land, etc.

3) Technology

4) Monetary privilege – the dollar – financial system

5) Cultural hegemony (English, university system, audio-visual products)

6) Population growth

7) Stable political system

8) Military power

Source: points 1 to 5 - Albert, M., Capitalisme contre capitalisme, Paris, Editions du Seuil, 1991.

Economy: Key Indicators 1

GDP $17,42 trillion (est 2014); 22% of world GDP, at market exchange rates 2014.

GDP per capita $49,000 (2011 est.)

Gini coefficient of family income: United States 0.45 (est 2007)France 32.7 (est 2008)

Market value of publicly traded shares:$18.67 trillion (31 December 2012 est.) : ie 107% of

GDP

Source: CIA World Factbook, 2010 and other sources.

Economy: Key Indicators 2

GDP composition by sector• agriculture: 1.2%• industry: 19.2%• services: 79.6% (2011 est.)

Labor force by occupation

• farming, forestry, and fishing: 0.7%• manufacturing, extraction, transportation, and crafts:

20.3%• managerial, professional, and technical: 37.3%• sales and office: 24.2%• other services: 17.6%

Economy: Key Indicators 3

• Net stock of fixed assets and consumer durables: $55.9 trillion (2013, source BEA)

• Stock of FDI at home: $2.571 trillion (end 2011 est.)• Stock of FDI abord: $4.314 trillion (end 2011 est.)

• Proved oil reserves: 20.68 billion bbl (begin. 2011 est.) – 13th in world

• Proved natural gas reserves: 7.716 trillion cu m (begin.2009 est.) – 5th in world

U.S. assets were $25,324.4 billion at the end of the first quarterU.S. liabilities $32,118.3 billion.

Source: Bureau of Economic Analysis, Press release, BEA, June 30, 2015.

First quarter of 2015: net position was -$6,794.0 billion

Population growth over time

1990: 250.1 m – 2007: 300 m > mid-2020s maybe 350 m Source: Economic Report of the President, 2013.

Population 321.4 million (July 2015 est.)Growth rate 0.78% (2015 est) (0.977% 2010 est)

Births: 13.68 births/1,000 population (2012 est.)Fertility rate: 2.06 children born/woman (2012 est.)Net migration: 3.62 /1,000 population (2012 est.)

Life expectancy: total population: 78.49 years male: 76.04 years female: 81.05 years (2012 est.)

Demographic breakdown, est 2011 (2006)0-14 years: 20.1% (20.4%): 15-64: 66.8% (67%)65 years and over: 13.1% (12.5%)

Source: CIA World Factbook, United States.

Population characteristics 1

Population characteristics 2

Ethnic groups (est. 2010)White 79.96% Ameridian/Alaska: 0.97%Black 12.85% Hawaii/Pacific 0.18%Asian 4.43% (“Hispanic” 15. 1%)

Languages: English 82.1% Spanish 10.7% (2000 census)

Religious compositionProtestant 51.3%, Catholic 23.9%,Other Christ. 1.6%, Jewish 1.7%, Muslim 1%Unaffiliated 12.1%, 10% (2007 est)

US Mean Center of Population 1790-2010 (wikipedia)

Source: Economic Report of the President, 2015

TABLE B–11. Civilian population and labor force, 1929–2014—Continued

[Monthly data seasonally adjusted, except as noted]

Year or month

Civilian noninstitutional

population 1

Civilian labor forceNot in labor force

Civilian labor force

participation rate 2

Civilian employm

ent/ population ratio 3

Unemployment rate,

civilian workers 4

TotalEmployment

UnemploymentTotal

Agricultural

Nonagricultural

Thousands of persons 16 years of age and over Percent

2007. 231 867 153 124 146 047 2 095 143 952 7 078 78 743 66,0 63,0 4,6

2008. 233 788 154 287 145 362 2 168 143 194 8 924 79 501 66,0 62,2 5,8

2009. 235 801 154 142 139 877 2 103 137 775 14 265 81 659 65,4 59,3 9,3

2010. 237 830 153 889 139 064 2 206 136 858 14 825 83 941 64,7 58,5 9,6

2011. 239 618 153 617 139 869 2 254 137 615 13 747 86 001 64,1 58,4 8,9

2012. 243 284 154 975 142 469 2 186 140 283 12 506 88 310 63,7 58,6 8,1

2013. 245 679 155 389 143 929 2 130 141 799 11 460 90 290 63,2 58,6 7,4

2014. 247 947 155 922 146 305 2 237 144 068 9 617 92 025 62,9 59,0 6,2

Labor force participation rateCivilian population, 16 and over

Source: Bureau of Labor Statistics,

GDP by industry: % of value-addedPrivate industry, services and govt

Source: Economic Report of the President, 2013

GDP by industry: % of value-added 1

Source, Kate McKenzie, “US shale oil abundance: Bernstein vs. the IEA”, The Financial Times, November 19, 2012.

GDP by industry: % of value-added 2

Private consumption(2009: 56.9% of all consumption, $10.1 tn)