ECONOMY

The economy of the United States is that of a highly developed country with a mixed economy. It is the world's largest economy by nominal GDP and net wealth and the second-largest by purchasing power parity (PPP). It has the world's fifth-highest per capita GDP (nominal) and the seventh-highest per capita GDP (PPP) in 2020. The United States has the most technologically powerful economy in the world and its firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment.The U.S. dollar is the currency most used in international transactions and is the world's foremost reserve currency, backed by its economy, its military, the petrodollar system and its linked eurodollar and large U.S. treasuries market. Several countries use it as their official currency and in others it is the de facto currency. The largest U.S. trading partners are China, Canada, Mexico, Japan, Germany, South Korea, United Kingdom, France, India, and Taiwan.The U.S. is the world's largest importer and the second-largest exporter. It has free trade agreements with several nations, including the USMCA, Australia, South Korea, Israel, and few others that are in effect or under negotiation.

    

The nation's economy is fueled by abundant natural resources, a well-developed infrastructure, and high productivity. It has the seventh-highest total-estimated value of natural resources, valued at Int$45 trillion in 2015. Americans have the highest average household and employee income among OECD member states, and in 2010, they had the fourth-highest median household income, down from second-highest in 2007. By 1890 the United States had overtaken the British Empire as the world's most productive economy. It is the world's largest producer of petroleum and natural gas. In 2016, it was the world's largest trading nation as well as its second-largest manufacturer, representing a fifth of the global manufacturing output. The U.S. not only has the largest internal market for goods, but also dominates the trade in services. U.S. total trade amounted to $4.2 trillion in 2018. Of the world's 500 largest companies, 121 are headquartered in the U.S. The U.S. has the world's highest number of billionaires with total wealth of $3.0 trillion. US commercial banks had $20 trillion in assets as of August 2020. US Global assets under management had more than $30 trillion in assets.

   

The New York Stock Exchange and Nasdaq are the world's largest stock exchanges by market capitalization and trade volume. Foreign investments made in the U.S. total almost $4.0 trillion,while American investments in foreign countries total over $5.6 trillion. The U.S. economy is ranked first in international ranking on venture capital and Global Research and Development funding.Consumer spending comprised 68% of the U.S. economy in 2018, while its labor share of income was 43% in 2017. The U.S. has the world's largest consumer market. The nation's labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world.The U.S. is one of the top-performing economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report, and others.

   

The U.S. economy experienced a serious economic downturn during the Great Recession, defined as lasting from December 2007 to June 2009. However, real GDP regained its pre-crisis (late 2007) peak by 2011, household net worth by Q2 2012, non-farm payroll jobs by May 2014, and the unemployment rate by September 2015. Each of these variables continued into post-recession record territory following those dates, with the U.S. recovery becoming the second-longest on record by April 2018. In the first two quarters of 2020, the U.S. economy entered recession due to the COVID-19 pandemic. This coronavirus recession has been widely described as the most severe global economic downturn since the Great Depression, and "far worse" than the Great Recession. Income inequality ranked 41st highest among 156 countries in 2017, and the highest compared to other Western nations. 

The United States economy experienced a recession in 2001 with an unusually slow jobs recovery, with the number of jobs not regaining the February 2001 level until January 2005. This "jobless recovery" overlapped with the building of a housing bubble and arguably a wider debt bubble, as the ratio of household debt to GDP rose from a record level of 70% in Q1 2001 to 99% in Q1 2008. Homeowners were borrowing against their bubble-priced homes to fuel consumption, driving up their debt levels while providing an unsustainable boost to GDP. When housing prices began falling in 2006, the value of securities backed by mortgages fell dramatically, causing the equivalent of a bank run in the essentially unregulated non-depository banking system, which had outgrown the traditional, regulated depository banking system. Many mortgage companies and other non-depository banks (e.g., investment banks) faced a worsening crisis in 2007–2008, with the banking crisis peaking in September 2008, with the bankruptcy of Lehman Brothers and bailouts of several other financial institutions. The Bush administration (2001–2009) and Obama administrations (2009–2017) applied banking bailout programs and Keynesian stimulus via high government deficits, while the Federal Reserve maintained near-zero interest rates. These measures helped the economy recover, as households paid down debts in 2009–2012, the only years since 1947 where this occurred, presenting a significant barrier to recovery.[97] Real GDP regained its pre-crisis (late 2007) peak by 2011, household net worth by Q2 2012, non-farm payroll jobs by May 2014, and the unemployment rate by September 2015. Each of these variables continued into post-recession record territory following those dates, with the U.S. recovery becoming the second longest on record in April 2018. Debt held by the public a measure of national debt, has risen throughout the 21st century, rising from 31% in 2000 to 52% in 2009 and 77% of GDP in 2017, which was ranked 43rd highest out of 207 countries. Income inequality peaked in 2007 and fell during the Great Recession, yet still ranked 41st highest among 156 countries in 2017 (i.e., 74% of countries had a more equal income distribution).