The US Economy

Green is USA per capita
Blue is per capita higher than USA
Tan is per capita lower than USA

The US economy is the largest in the world as of 2011.  Our GDP (Gross Domestic Product) is $14.527 trillion (2010) with a GDP per person of $47,284. Our GDP is 50% higher than the countries of the European Union and Japan.  The GDP of the US represents 25% of the world’s GDP with China, according to the IMF (international Monetary Fund), expected to outgrow us 5 years from now.  Most of our economy is classified as service, but the US remains the largest world manufacturer, representing 20% of the world’s manufacturing output:  139 of the world’s largest 500 companies are located here – twice that of any other country.  About 60% of the world’s currency reserves have been invested in the United States with only 24% being invested in Europe.  Foreign investments in the US are $2.4 trillion (twice that of any other country), with American investments in foreign countries at $3.3 trillion which is also twice that of any other country in the world.  However, 15.1% of Americans  are living below the poverty line.

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Our main industries are:  petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, creative industries (knowledge and information), electronics, food processing, consumer goods, lumber, mining, defense, biomedical research, health care services, computers, and robotics.

According to the Bureau of Labor Statistics, our unemployment rate is 9.1% with those that are employed receiving on average, $23.12/hour and productivity reducing from 1.2 in 2010 to -0.7 currently.

Interestingly, globalization has allowed Americans to enjoy a relatively stable cost of living index.  For example, if many of our tennis shoes were made in the US, the cost would double or triple due to wages paid plus demanded benefits.  This same analogy would hold true for vegetables, fruits, and other produce which is typically harvested by foreigners at a low wage.  The costs of computers are low because many of the components are made outside the US in lower wage jurisdictions and typically in countries without medical benefits.  While labor and trade unions in the US have served to increase American wages, they have also served to inflate prices by increasing cost of goods sold.  In fact, in some industries (like the automotive industry) scrap and rework account for as much as 1/3 of our manufacturing costs.

The American worker could stop most of this, if he or she wanted to, but it is typically the only retaliation available due to poor working conditions or poor management practices believing the American worker has to be manipulated in order to sustain or increase productivity. 

For example, on a trip to Lowes this morning to purchase a $100 worth of merchandise, I had to wait 20 minutes for service because 2 employees were sharing what they did last night and when I finally reached the check-out cashier, the look on her face was not one of appreciation  but one of annoyance.  My first thought is, was this her fault or the result of the environment created by management?  If the latter, why is Lowes allowing this to happen?

CBS Early Show News (10-25-11)

On Average our children by the time they are 18 years old have spent 10,000 hours playing video games which represents more hours spent in school.  This is a very serious by-product of our current economic condition and lifestyle.  How is this next generation going to protect and maintain the economy that we are going to entrust to them?

On the other side of the coin, if we could design jobs around the playing of video games, these kids would be a "perfect fit," and US employers would not have to look in other countries for workers.  Also, some of our Colleges and Universities are looking into the possibility of designing curriculums around video games.  If that were to become a reality, then these kids would be a "perfect fit" there as well.

To all those video game designers, I salute you for doing such a great job! ! !