Economy
Economy - overview: The US has the most powerful, diverse, and technologically advanced economy in the world, with a per capita GDP of $28,600, the largest among major industrial nations. In this market-oriented economy, private individuals and business firms make most of the decisions, and government buys needed goods and services predominantly in the private marketplace. US business firms enjoy considerably greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, lay off surplus workers, and develop new products. At the same time, they face higher barriers to entry in their rivals' home markets than the barriers to entry of foreign firms in US markets. In all economic sectors, US firms are at or near the forefront in technological advances, especially in computers, and medical, aerospace, and military equipment, although their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get pay raises, health insurance coverage, and other benefits. The years 1994-96 witnessed moderate gains in real output, low inflation rates, and a drop in unemployment below 6%. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical costs of an aging population, sizable budget and trade deficits, and stagnation of family income in the lower economic groups. The outlook for 1997 is for continued moderate growth, low inflation, and about the same level of unemployment.
GDP: purchasing power parity - $7.61 trillion (1996 est.)
GDP - real growth rate: 2.4% (1996 est.)
GDP - per capita: purchasing power parity - $28,600 (1996 est.)
GDP - composition by sector: agriculture: 2% industry: 23% services: 75% (1996 est.)
Inflation rate - consumer price index: 3% (1996 est.)
Labor force: total: 133.943 million (includes unemployed) (1996) by occupation: managerial and professional 28.8%, technical, sales and administrative support 29.7%, services 13.6%, manufacturing, mining, transportation, and crafts 25.1%, farming, forestry, and fishing 2.8%
Unemployment rate: 5.4% (1996)
Budget: revenues: $1.351 trillion expenditures: $1.514 trillion, including capital expenditures of $NA (1995)