The economy maintained high wages, attracting immigrants by the millions from all over the world. In the early 1800s, the United States was largely agricultural with more than 80 percent of the population in farming.
The Panic of 1837 was followed by a five-year depression, with the failure of banks and then-record-high unemployment levels.
Thus, by 1860 the share of the farm population in the U.S.
By 1890 the United States had overtaken the British Empire as the world's most productive economy.
Many workers shared the success of these large firms, which typically offered the highest wages in the world. The United States has been the world's largest national economy in terms of GDP since at least the 1920s.
For many years following the Great Depression of the 1930s, when danger of recession appeared most serious, the government strengthened the economy by spending heavily itself or cutting taxes so that consumers would spend more, and by fostering rapid growth in the money supply, which also encouraged more spending.
Ideas about the best tools for stabilizing the economy changed substantially between the 1930s and the 1980s.
From the New Deal era that began in 1933, to the Great Society initiatives of the 1960s, national policy makers relied principally on fiscal policy to influence the economy. During the world wars of the twentieth century, the United States fared better than the rest of the combatants because none of the First World War and relatively little of the Second World War was fought on American territory (and none on the then 48 states).
The "Baby Boom" saw a dramatic increase in fertility in the period 1942–1957; it was caused by delayed marriages and childbearing during depression years, a surge in prosperity, a demand for suburban single-family homes (as opposed to inner city apartments) and new optimism about the future.
from 1945 to 2008, but has since remained generally level. In 2005, median personal income for those over the age of 18 ranged from $3,317 for an unemployed, married Asian American female to $55,935 for a full-time, year-round employed Asian American male.
economy grew by an average of 3.8% from 1946 to 1973, while real median household income surged 74% (or 2.1% a year). The worst recession in recent decades, in terms of lost output, occurred during the financial crisis of 2007–08, when GDP fell by 5.0% from the spring of 2008 to the spring of 2009.
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.
15.8% also in 2009). The youth unemployment rate was 18.5% in July 2009, the highest rate in that month since 1948.
Recasting the 2012 income using the 1979 income distribution (representing the more egalitarian 1950–1980 period), the bottom 99% of families would have averaged about $7,100 more income.
In 1955, 55% of Americans worked in services, between 30% and 35% in industry, and between 10% and 15% in agriculture.
The boom crested about 1957, then slowly declined.
Other significant recessions took place in 1957–58, when GDP fell 3.7%, following the 1973 oil crisis, with a 3.1% fall from late 1973 to early 1975, and in the 1981–82 recession, when GDP dropped by 2.9%.
In the 1959–1962 period, the poverty rate was over 20%, but declined to the all-time low of 11.1% in 1973 following the War on Poverty begun during the Lyndon Johnson presidency.
From the New Deal era that began in 1933, to the Great Society initiatives of the 1960s, national policy makers relied principally on fiscal policy to influence the economy. During the world wars of the twentieth century, the United States fared better than the rest of the combatants because none of the First World War and relatively little of the Second World War was fought on American territory (and none on the then 48 states).
It grew 3.0% per year on average in the 1960s, 2.1% in the 1970s, 2.4% in the 1980s, 2.2% in the 1990s, 0.7% in the 2000s, and 0.9% from 2010 to 2017.
The most vigorous, sustained periods of growth, on the other hand, took place from early 1961 to mid-1969, with an expansion of 53% (5.1% a year), from mid-1991 to late in 2000, at 43% (3.8% a year), and from late 1982 to mid-1990, at 37% (4% a year). In the 1970s and 1980s, it was popular in the U.S.
The average ownership rate from 1965 to 2017 was 65.3%. The average home in the United States has more than 700 square feet per person (65 square meters), which is 50%–100% more than the average in other high-income countries.
Since 1966, Americans have received more Nobel Prizes in Medicine than the rest of the world combined.
The most vigorous, sustained periods of growth, on the other hand, took place from early 1961 to mid-1969, with an expansion of 53% (5.1% a year), from mid-1991 to late in 2000, at 43% (3.8% a year), and from late 1982 to mid-1990, at 37% (4% a year). In the 1970s and 1980s, it was popular in the U.S.
to believe that Japan's economy would surpass that of the U.S., but this did not happen. Since the 1970s, several emerging countries have begun to close the economic gap with the United States.
It grew 3.0% per year on average in the 1960s, 2.1% in the 1970s, 2.4% in the 1980s, 2.2% in the 1990s, 0.7% in the 2000s, and 0.9% from 2010 to 2017.
is mathematically harder due to its higher and more widely distributed income range than in nations with artificial income compression, even if one enjoys more absolute mobility in the U.S., and have questioned how meaningful such international comparisons are. There has been a widening gap between productivity and median incomes since the 1970s.
citizens residing in their vehicles because they can't find affordable housing has "exploded", particularly in cities with steep increases in the cost of housing such as Los Angeles, Portland and San Francisco. ===Profits and wages=== In 1970, wages represented more than 51% of the U.S.
Some scholars contend that the shift to neoliberal social and economic policies starting in the late 1970s has expanded the penal state, retrenched the social welfare state, deregulated the economy and criminalized poverty, ultimately "transforming what it means to be poor in America". ==Health care== ===Coverage=== The American system is a mix of public and private insurance.
A period of high inflation, interest rates and unemployment after 1973 weakened confidence in fiscal policy as a tool for regulating the overall pace of economic activity. The U.S.
economy grew by an average of 3.8% from 1946 to 1973, while real median household income surged 74% (or 2.1% a year). The worst recession in recent decades, in terms of lost output, occurred during the financial crisis of 2007–08, when GDP fell by 5.0% from the spring of 2008 to the spring of 2009.
Other significant recessions took place in 1957–58, when GDP fell 3.7%, following the 1973 oil crisis, with a 3.1% fall from late 1973 to early 1975, and in the 1981–82 recession, when GDP dropped by 2.9%.
In the 1959–1962 period, the poverty rate was over 20%, but declined to the all-time low of 11.1% in 1973 following the War on Poverty begun during the Lyndon Johnson presidency.
Other significant recessions took place in 1957–58, when GDP fell 3.7%, following the 1973 oil crisis, with a 3.1% fall from late 1973 to early 1975, and in the 1981–82 recession, when GDP dropped by 2.9%.
According to a 2014 OECD report, 80% of total pre-tax market income growth went to the top 10% from 1975 to 2007. A number of economists and others have expressed growing concern about income inequality, calling it "deeply worrying", unjust, a danger to democracy/social stability, or a sign of national decline.
income earners have taken $50trillion from the bottom 90% between 1975 and 2018. ===Household net worth and wealth inequality=== As of Q4 2017, total household net worth in the United States was a record $99trillion, an increase of $5.2trillion from 2016.
America solely developed or contributed significantly to nine of the top ten most important medical innovations since 1975 as ranked by a 2001 poll of physicians, while the EU and Switzerland together contributed to five.
Income inequality in the United States has grown from 2005 to 2012 in more than two out of three metropolitan areas. The top 1 percent of income-earners accounted for 52 percent of the income gains from 2009 to 2015, where income is defined as market income excluding government transfers, while their share of total income has more than doubled from nine percent in 1976 to twenty percent in 2011.
According to the Congressional Budget Office, the top 1% of income households earned about a 9% share of the pre-tax income in 1979, versus 19% in 2007 and 17% in 2014.
These figures indicate the share of income earned by top earners more than doubled between 1979 and 2007, then fell somewhat following the Great Recession, and the higher tax rates and re-distributive policies applied by President Barack Obama in 2013 (i.e., expiration of the Bush Tax Cuts for the top 1% and subsidies for lower income persons via the Affordable Care Act).
Recasting the 2012 income using the 1979 income distribution (representing the more egalitarian 1950–1980 period), the bottom 99% of families would have averaged about $7,100 more income.
The bottom 25% of families had a median net worth of zero, while the 25th to 50th percentile had a median net worth of $40,000. Wealth inequality is more unequal than income inequality, with the top 1% households owning approximately 42% of the net worth in 2012, versus 24% in 1979.
Ideas about the best tools for stabilizing the economy changed substantially between the 1930s and the 1980s.
The most vigorous, sustained periods of growth, on the other hand, took place from early 1961 to mid-1969, with an expansion of 53% (5.1% a year), from mid-1991 to late in 2000, at 43% (3.8% a year), and from late 1982 to mid-1990, at 37% (4% a year). In the 1970s and 1980s, it was popular in the U.S.
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). ==Data== The following table shows the main economic indicators in 1980–2019. ==GDP== U.S.
It grew 3.0% per year on average in the 1960s, 2.1% in the 1970s, 2.4% in the 1980s, 2.2% in the 1990s, 0.7% in the 2000s, and 0.9% from 2010 to 2017.
By 1980, over 65% were employed in services, between 25% and 30% in industry, and less than 5% in agriculture.
Other significant recessions took place in 1957–58, when GDP fell 3.7%, following the 1973 oil crisis, with a 3.1% fall from late 1973 to early 1975, and in the 1981–82 recession, when GDP dropped by 2.9%.
The most vigorous, sustained periods of growth, on the other hand, took place from early 1961 to mid-1969, with an expansion of 53% (5.1% a year), from mid-1991 to late in 2000, at 43% (3.8% a year), and from late 1982 to mid-1990, at 37% (4% a year). In the 1970s and 1980s, it was popular in the U.S.
Recent, mild recessions have included the 1990–91 downturn, when output fell by 1.3%, and the 2001 recession, in which GDP slid by 0.3%; the 2001 downturn lasted just eight months.
It grew 3.0% per year on average in the 1960s, 2.1% in the 1970s, 2.4% in the 1980s, 2.2% in the 1990s, 0.7% in the 2000s, and 0.9% from 2010 to 2017.
from 1996 to 2006. As of 2010 The U.S.
Extreme poverty in the United States, meaning households living on less than $2 per day before government benefits, doubled from 1996 levels to 1.5 million households in 2011, including 2.8 million children.
However, it was just above the previous record set in 1998, indicating the purchasing power of middle-class family income has been stagnant or down for much of the past twenty years.
The most vigorous, sustained periods of growth, on the other hand, took place from early 1961 to mid-1969, with an expansion of 53% (5.1% a year), from mid-1991 to late in 2000, at 43% (3.8% a year), and from late 1982 to mid-1990, at 37% (4% a year). In the 1970s and 1980s, it was popular in 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.
It grew 3.0% per year on average in the 1960s, 2.1% in the 1970s, 2.4% in the 1980s, 2.2% in the 1990s, 0.7% in the 2000s, and 0.9% from 2010 to 2017.
Reasons for slower growth since 2000 are debated by economists and may include aging demographics, slower population and growth in labor force, slower productivity growth, reduced corporate investment, greater income inequality reducing demand, lack of major innovations, and reduced labor power.
real GDP grew by an average of 1.7% from 2000 to the first half of 2014, a rate around half the historical average up to 2000. ==By economic sector== ===Nominal GDP sector composition=== Nominal GDP sector composition, 2015 (in millions of dollars) at 2005 constant prices Nominal GDP Sector Composition, 2016 (in millions of dollars) at current prices. ==Employment== There were approximately 160.4 million people in the U.S.
In June 2016, The IMF warned the United States that its high poverty rate needs to be tackled urgently. The population in extreme-poverty neighborhoods rose by one third from 2000 to 2009.
Recent, mild recessions have included the 1990–91 downturn, when output fell by 1.3%, and the 2001 recession, in which GDP slid by 0.3%; the 2001 downturn lasted just eight months.
has slowed. ===Early 21st century=== 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.
America solely developed or contributed significantly to nine of the top ten most important medical innovations since 1975 as ranked by a 2001 poll of physicians, while the EU and Switzerland together contributed to five.
home ownership rate in Q1 2018 was 64.2%, well below the all-time peak of 69.2% set in Q4 2004 during a housing bubble.
has slowed. ===Early 21st century=== 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.
real GDP grew by an average of 1.7% from 2000 to the first half of 2014, a rate around half the historical average up to 2000. ==By economic sector== ===Nominal GDP sector composition=== Nominal GDP sector composition, 2015 (in millions of dollars) at 2005 constant prices Nominal GDP Sector Composition, 2016 (in millions of dollars) at current prices. ==Employment== There were approximately 160.4 million people in the U.S.
Income inequality in the United States has grown from 2005 to 2012 in more than two out of three metropolitan areas. The top 1 percent of income-earners accounted for 52 percent of the income gains from 2009 to 2015, where income is defined as market income excluding government transfers, while their share of total income has more than doubled from nine percent in 1976 to twenty percent in 2011.
Median household wealth fell 35% in the U.S., from $106,591 to $68,839 between 2005 and 2011, due to the Great Recession, but has since recovered as indicated above. About 30% of the entire world's millionaire population resides in the United States ().
from 1945 to 2008, but has since remained generally level. In 2005, median personal income for those over the age of 18 ranged from $3,317 for an unemployed, married Asian American female to $55,935 for a full-time, year-round employed Asian American male.
The overall median personal income for all individuals over the age of 18 was $24,062 ($32,140 for those age 25 or above) in the year 2005. As a reference point, the minimum wage rate in 2009 and 2017 was $7.25 per hour or $15,080 for the 2080 hours in a typical work year.
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.
from 1996 to 2006. As of 2010 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.
economy grew by an average of 3.8% from 1946 to 1973, while real median household income surged 74% (or 2.1% a year). The worst recession in recent decades, in terms of lost output, occurred during the financial crisis of 2007–08, when GDP fell by 5.0% from the spring of 2008 to the spring of 2009.
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.
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.
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). ==Data== The following table shows the main economic indicators in 1980–2019. ==GDP== U.S.
However, the number of payroll jobs returned to its pre-recession (November 2007) level by May 2014 as the economy recovered. After being higher in the post-war period, the U.S.
During 2013, employee compensation was $8.969trillion, while gross private investment totals $2.781trillion. Americans have the highest average [income] among OECD nations, and in 2010 had the fourth-highest median household income, down from second-highest in 2007.
According to the Congressional Budget Office, the top 1% of income households earned about a 9% share of the pre-tax income in 1979, versus 19% in 2007 and 17% in 2014.
These figures indicate the share of income earned by top earners more than doubled between 1979 and 2007, then fell somewhat following the Great Recession, and the higher tax rates and re-distributive policies applied by President Barack Obama in 2013 (i.e., expiration of the Bush Tax Cuts for the top 1% and subsidies for lower income persons via the Affordable Care Act).
According to a 2014 OECD report, 80% of total pre-tax market income growth went to the top 10% from 1975 to 2007. A number of economists and others have expressed growing concern about income inequality, calling it "deeply worrying", unjust, a danger to democracy/social stability, or a sign of national decline.
Millions of homes were lost to foreclosure during the Great Recession of 2007–2009, bringing the ownership rate to a trough of 62.9% in Q2 2016.
In 2013, child poverty reached record high levels, with 16.7 million children living in food insecure households, about 35% more than 2007 levels.
The poverty rate rose from 12.5% in 2007 before the Great Recession to a 15.1% peak in 2010, before falling back to just above the 2007 level.
Cigarettes cost the United States $326billion each year in direct healthcare costs ($170billion) and lost productivity ($156billion). A comprehensive 2007 study by European doctors found the five-year cancer survival rate was significantly higher in the U.S.
economy grew by an average of 3.8% from 1946 to 1973, while real median household income surged 74% (or 2.1% a year). The worst recession in recent decades, in terms of lost output, occurred during the financial crisis of 2007–08, when GDP fell by 5.0% from the spring of 2008 to the spring of 2009.
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.
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.
as of 2008 is $52,029.
Between February 2008 and February 2010, the number of people working part-time for economic reasons (i.e., would prefer to work full-time) increased by 4.0 million to 8.8 million, an 83% increase in part-time workers during the two-year period. By 2013, although the unemployment rate had fallen below 8%, the record proportion of long term unemployed and continued decreasing household income remained indicative of a jobless recovery.
Yale professor Robert Shiller has said, "The most important problem that we are facing now today, I think, is rising inequality in the United States and elsewhere in the world." Thomas Piketty of the Paris School of Economics argues that the post-1980 increase in inequality played a role in the 2008 crisis by contributing to the nation's financial instability.
Meissner have argued that inequality cannot be blamed for the 2008 financial crisis. According to a report by the Congressional Research Service, decreased progressiveness in capital gains taxes was the largest contributor to the increase in overall income inequality in the U.S.
The Economist Intelligence Unit estimated in 2008 that there were 16,600,000 millionaires in the U.S.
from 1945 to 2008, but has since remained generally level. In 2005, median personal income for those over the age of 18 ranged from $3,317 for an unemployed, married Asian American female to $55,935 for a full-time, year-round employed Asian American male.
population, used an emergency shelter or a transitional housing program between October 1, 2008 and September 30, 2009.
economy experienced a serious economic downturn during the Great Recession, defined as lasting from December 2007 to June 2009.
economy grew by an average of 3.8% from 1946 to 1973, while real median household income surged 74% (or 2.1% a year). The worst recession in recent decades, in terms of lost output, occurred during the financial crisis of 2007–08, when GDP fell by 5.0% from the spring of 2008 to the spring of 2009.
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.
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.
As of 2017, the European Union as an aggregate had a GDP roughly 5% larger than the U.S. Real GDP per capita (measured in 2009 dollars) was $52,444 in 2017 and has been growing each year since 2010.
population of approximately 327 million people. Between 2009 and 2010, following the Great Recession, the emerging problem of jobless recoveries resulted in record levels of long-term unemployment with more than six million workers looking for work for more than six months as of January 2010.
A year after the recession ended in June 2009, immigrants gained 656,000 jobs in the U.S., while U.S.-born workers lost more than a million jobs, due in part to an aging country (relatively more white retirees) and demographic shifts.
15.8% also in 2009). The youth unemployment rate was 18.5% in July 2009, the highest rate in that month since 1948.
Income inequality in the United States has grown from 2005 to 2012 in more than two out of three metropolitan areas. The top 1 percent of income-earners accounted for 52 percent of the income gains from 2009 to 2015, where income is defined as market income excluding government transfers, while their share of total income has more than doubled from nine percent in 1976 to twenty percent in 2011.
The overall median personal income for all individuals over the age of 18 was $24,062 ($32,140 for those age 25 or above) in the year 2005. As a reference point, the minimum wage rate in 2009 and 2017 was $7.25 per hour or $15,080 for the 2080 hours in a typical work year.
In June 2016, The IMF warned the United States that its high poverty rate needs to be tackled urgently. The population in extreme-poverty neighborhoods rose by one third from 2000 to 2009.
population, used an emergency shelter or a transitional housing program between October 1, 2008 and September 30, 2009.
A 2009 study by former Clinton policy adviser Richard Kronick found no increased mortality from being uninsured after certain risk factors were controlled for. ===Outcomes=== The U.S.
Americans have the highest average household and employee income among OECD member states, and in 2013, they had the sixth-highest median household income, down from fourth-highest in 2010.
As of 2017, the European Union as an aggregate had a GDP roughly 5% larger than the U.S. Real GDP per capita (measured in 2009 dollars) was $52,444 in 2017 and has been growing each year since 2010.
It grew 3.0% per year on average in the 1960s, 2.1% in the 1970s, 2.4% in the 1980s, 2.2% in the 1990s, 0.7% in the 2000s, and 0.9% from 2010 to 2017.
labor force in 2017, the fourth largest labor force in the world behind China, India, and the European Union. The government (federal, state and local) employed 22 million in 2010.
population of approximately 327 million people. Between 2009 and 2010, following the Great Recession, the emerging problem of jobless recoveries resulted in record levels of long-term unemployment with more than six million workers looking for work for more than six months as of January 2010.
In April 2010, the official unemployment rate was 9.9%, but the government's broader U-6 unemployment rate was 17.1%.
Between February 2008 and February 2010, the number of people working part-time for economic reasons (i.e., would prefer to work full-time) increased by 4.0 million to 8.8 million, an 83% increase in part-time workers during the two-year period. By 2013, although the unemployment rate had fallen below 8%, the record proportion of long term unemployed and continued decreasing household income remained indicative of a jobless recovery.
During 2013, employee compensation was $8.969trillion, while gross private investment totals $2.781trillion. Americans have the highest average [income] among OECD nations, and in 2010 had the fourth-highest median household income, down from second-highest in 2007.
According to one analysis middle-class incomes in the United States fell into a tie with those in Canada in 2010, and may have fallen behind by 2014, while several other advanced economies have closed the gap in recent years. ===Income inequality=== Income inequality has become a hotly debated topic globally.
from 1996 to 2006. As of 2010 The U.S.
The poverty rate rose from 12.5% in 2007 before the Great Recession to a 15.1% peak in 2010, before falling back to just above the 2007 level.
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.
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.
Income inequality in the United States has grown from 2005 to 2012 in more than two out of three metropolitan areas. The top 1 percent of income-earners accounted for 52 percent of the income gains from 2009 to 2015, where income is defined as market income excluding government transfers, while their share of total income has more than doubled from nine percent in 1976 to twenty percent in 2011.
Median household wealth fell 35% in the U.S., from $106,591 to $68,839 between 2005 and 2011, due to the Great Recession, but has since recovered as indicated above. About 30% of the entire world's millionaire population resides in the United States ().
Furthermore, 34% of the world's billionaires are American (in 2011). ===Home ownership=== The U.S.
Extreme poverty in the United States, meaning households living on less than $2 per day before government benefits, doubled from 1996 levels to 1.5 million households in 2011, including 2.8 million children.
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.
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.
employment, as estimated in 2012, is divided into 79.7% in the service sector, 19.2% in the manufacturing sector, and 1.1% in the agriculture sector. United States non-farm employment by industry sector February 2013. ==Income and wealth== ===Income measures=== Real (i.e., inflation-adjusted) median household income, a good measure of middle-class income, was $59,039 in 2016, a record level.
Recasting the 2012 income using the 1979 income distribution (representing the more egalitarian 1950–1980 period), the bottom 99% of families would have averaged about $7,100 more income.
Income inequality in the United States has grown from 2005 to 2012 in more than two out of three metropolitan areas. The top 1 percent of income-earners accounted for 52 percent of the income gains from 2009 to 2015, where income is defined as market income excluding government transfers, while their share of total income has more than doubled from nine percent in 1976 to twenty percent in 2011.
This measure has been setting records since Q4 2012.
The bottom 25% of families had a median net worth of zero, while the 25th to 50th percentile had a median net worth of $40,000. Wealth inequality is more unequal than income inequality, with the top 1% households owning approximately 42% of the net worth in 2012, versus 24% in 1979.
In September 2012, according to the Institute for Policy Studies, "over 60 percent" of the Forbes richest 400 Americans "grew up in substantial privilege".
According to the United States Census Bureau, in 2012 there were 45.6 million people in the US (14.8% of the under-65 population) who were without health insurance.
Americans have the highest average household and employee income among OECD member states, and in 2013, they had the sixth-highest median household income, down from fourth-highest in 2010.
Between February 2008 and February 2010, the number of people working part-time for economic reasons (i.e., would prefer to work full-time) increased by 4.0 million to 8.8 million, an 83% increase in part-time workers during the two-year period. By 2013, although the unemployment rate had fallen below 8%, the record proportion of long term unemployed and continued decreasing household income remained indicative of a jobless recovery.
The unemployment rate of young African Americans was 28.2% in May 2013. The unemployment rate reached an all-time high of 14.7% in April 2020 before falling back to 11.1% in June 2020.
employment, as estimated in 2012, is divided into 79.7% in the service sector, 19.2% in the manufacturing sector, and 1.1% in the agriculture sector. United States non-farm employment by industry sector February 2013. ==Income and wealth== ===Income measures=== Real (i.e., inflation-adjusted) median household income, a good measure of middle-class income, was $59,039 in 2016, a record level.
During 2013, employee compensation was $8.969trillion, while gross private investment totals $2.781trillion. Americans have the highest average [income] among OECD nations, and in 2010 had the fourth-highest median household income, down from second-highest in 2007.
These figures indicate the share of income earned by top earners more than doubled between 1979 and 2007, then fell somewhat following the Great Recession, and the higher tax rates and re-distributive policies applied by President Barack Obama in 2013 (i.e., expiration of the Bush Tax Cuts for the top 1% and subsidies for lower income persons via the Affordable Care Act).
The Brookings Institution said in March 2013 that income inequality was increasing and becoming permanent, sharply reducing social mobility in the US.
But by 2013, wages had fallen to 44% of the economy, while profits had more than doubled to 11%.
In 2013, child poverty reached record high levels, with 16.7 million children living in food insecure households, about 35% more than 2007 levels.
As of 2013, 44% of America's poor are considered to be in "deep poverty", with an income 50% or more below the government's official poverty line. According to the US Department of Housing and Urban Development's Annual Homeless Assessment Report, there were around 554,000 homeless people in the United States on a given night, or 0.17% of the population.
The private sector delivers healthcare services, with the exception of the Veteran's Administration, where doctors are employed by the government. Multiple surveys indicate the number of uninsured fell between 2013 and 2016 due to expanded Medicaid eligibility and health insurance exchanges established due to the Patient Protection and Affordable Care Act, also known as the "ACA" or "Obamacare".
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.
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.
Real GDP grew at a quarterly annualized rate of 2.2% in Q1 2018, 4.2% in Q2 2018, 3.4% in Q3 2018 and 2.2% in Q4 2018; the Q2 rate was the best growth rate since Q3 2014, and the overall yearly GDP growth of 2.9% in 2018 was the best performance of the economy in a decade.
In 2020, the growth rate of the GDP has started to drop as a result of the COVID-19 pandemic, resulting in the GDP shrinking at a quarterized annual growth rate of −5.0% in Q1 2020 and −32.9% in Q2 2020, respectively. As of 2014, China passed the U.S.
real GDP grew by an average of 1.7% from 2000 to the first half of 2014, a rate around half the historical average up to 2000. ==By economic sector== ===Nominal GDP sector composition=== Nominal GDP sector composition, 2015 (in millions of dollars) at 2005 constant prices Nominal GDP Sector Composition, 2016 (in millions of dollars) at current prices. ==Employment== There were approximately 160.4 million people in the U.S.
In 2014 and again in 2020, the International Trade Union Confederation graded the U.S.
However, the number of payroll jobs returned to its pre-recession (November 2007) level by May 2014 as the economy recovered. After being higher in the post-war period, the U.S.
According to one analysis middle-class incomes in the United States fell into a tie with those in Canada in 2010, and may have fallen behind by 2014, while several other advanced economies have closed the gap in recent years. ===Income inequality=== Income inequality has become a hotly debated topic globally.
According to the Congressional Budget Office, the top 1% of income households earned about a 9% share of the pre-tax income in 1979, versus 19% in 2007 and 17% in 2014.
According to a 2014 OECD report, 80% of total pre-tax market income growth went to the top 10% from 1975 to 2007. A number of economists and others have expressed growing concern about income inequality, calling it "deeply worrying", unjust, a danger to democracy/social stability, or a sign of national decline.
The minimum wage is a little more than the poverty level for a single person unit and about 50% of the poverty level for a family of four. According to an October 2014 report by the Pew Research Center, real wages have been flat or falling for the last five decades for most U.S.
It has the seventh-highest total-estimated value of natural resources, valued at Int$45trillion in 2015.
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.
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.
1.5% in 2016 and 2.9% in 2015.
real GDP grew by an average of 1.7% from 2000 to the first half of 2014, a rate around half the historical average up to 2000. ==By economic sector== ===Nominal GDP sector composition=== Nominal GDP sector composition, 2015 (in millions of dollars) at 2005 constant prices Nominal GDP Sector Composition, 2016 (in millions of dollars) at current prices. ==Employment== There were approximately 160.4 million people in the U.S.
Income inequality in the United States has grown from 2005 to 2012 in more than two out of three metropolitan areas. The top 1 percent of income-earners accounted for 52 percent of the income gains from 2009 to 2015, where income is defined as market income excluding government transfers, while their share of total income has more than doubled from nine percent in 1976 to twenty percent in 2011.
As of 2015, 44 percent of children in the United States live with low-income families. In 2016, 12.7% of the U.S.
population lived in poverty, down from 13.5% in 2015.
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.
1.5% in 2016 and 2.9% in 2015.
real GDP grew by an average of 1.7% from 2000 to the first half of 2014, a rate around half the historical average up to 2000. ==By economic sector== ===Nominal GDP sector composition=== Nominal GDP sector composition, 2015 (in millions of dollars) at 2005 constant prices Nominal GDP Sector Composition, 2016 (in millions of dollars) at current prices. ==Employment== There were approximately 160.4 million people in the U.S.
employment, as estimated in 2012, is divided into 79.7% in the service sector, 19.2% in the manufacturing sector, and 1.1% in the agriculture sector. United States non-farm employment by industry sector February 2013. ==Income and wealth== ===Income measures=== Real (i.e., inflation-adjusted) median household income, a good measure of middle-class income, was $59,039 in 2016, a record level.
In 2016, the economists Peter H.
income earners have taken $50trillion from the bottom 90% between 1975 and 2018. ===Household net worth and wealth inequality=== As of Q4 2017, total household net worth in the United States was a record $99trillion, an increase of $5.2trillion from 2016.
However, median household net worth (i.e., half of the families above and below this level) was $97,300 in 2016.
According to a September 2017 report by the Federal Reserve, wealth inequality is at record highs; the top 1% controlled 38.6% of the country's wealth in 2016.
Millions of homes were lost to foreclosure during the Great Recession of 2007–2009, bringing the ownership rate to a trough of 62.9% in Q2 2016.
Similarly, ownership rates of gadgets and amenities are relatively high compared to other countries. It was reported by Pew Research Center in 2016 that, for the first time in 130 years, Americans aged 18 to 34 are more likely to live with their parents than in any other housing situation. In one study by ATTOM Data Solutions, in 70% of the counties surveyed, homes are increasingly unaffordable for the average U.S.
As of 2015, 44 percent of children in the United States live with low-income families. In 2016, 12.7% of the U.S.
In June 2016, The IMF warned the United States that its high poverty rate needs to be tackled urgently. The population in extreme-poverty neighborhoods rose by one third from 2000 to 2009.
The private sector delivers healthcare services, with the exception of the Veteran's Administration, where doctors are employed by the government. Multiple surveys indicate the number of uninsured fell between 2013 and 2016 due to expanded Medicaid eligibility and health insurance exchanges established due to the Patient Protection and Affordable Care Act, also known as the "ACA" or "Obamacare".
This figure fell by 18.3 million (40%) to 27.3 million (8.6% of the under-65 population) by 2016. However, under President Trump these gains in healthcare coverage have begun to reverse.
The Commonwealth Fund estimated in May 2018 that the number of uninsured increased by four million from early 2016 to early 2018.
The rate of those uninsured increased from 12.7% in 2016 to 15.5%.
Americans smoked 258 billion cigarettes in 2016.
economy in 2018, while its labor share of income was 43% in 2017.
Income inequality ranked 41st highest among 156 countries in 2017, and the highest compared to other Western nations. ==History== ===Colonial era and 18th century=== The economic history of the United States began with British settlements along the Eastern seaboard in the 17th and 18th centuries.
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). ==Data== The following table shows the main economic indicators in 1980–2019. ==GDP== U.S.
nominal GDP was $19.5trillion in 2017.
Real gross domestic product, a measure of both production and income, grew by 2.3% in 2017, vs.
As of 2017, the European Union as an aggregate had a GDP roughly 5% larger than the U.S. Real GDP per capita (measured in 2009 dollars) was $52,444 in 2017 and has been growing each year since 2010.
It grew 3.0% per year on average in the 1960s, 2.1% in the 1970s, 2.4% in the 1980s, 2.2% in the 1990s, 0.7% in the 2000s, and 0.9% from 2010 to 2017.
ranked 20th out of 220 countries in GDP per capita in 2017.
labor force in 2017, the fourth largest labor force in the world behind China, India, and the European Union. The government (federal, state and local) employed 22 million in 2010.
income inequality ranked 41st highest among 156 countries in 2017 (i.e., 74% of countries have a more equal income distribution).
income earners have taken $50trillion from the bottom 90% between 1975 and 2018. ===Household net worth and wealth inequality=== As of Q4 2017, total household net worth in the United States was a record $99trillion, an increase of $5.2trillion from 2016.
According to a September 2017 report by the Federal Reserve, wealth inequality is at record highs; the top 1% controlled 38.6% of the country's wealth in 2016.
The Boston Consulting Group posited in June 2017 report that 1% of the Americans will control 70% of country's wealth by 2021. The top 10% wealthiest possess 80% of all financial assets.
The average ownership rate from 1965 to 2017 was 65.3%. The average home in the United States has more than 700 square feet per person (65 square meters), which is 50%–100% more than the average in other high-income countries.
The overall median personal income for all individuals over the age of 18 was $24,062 ($32,140 for those age 25 or above) in the year 2005. As a reference point, the minimum wage rate in 2009 and 2017 was $7.25 per hour or $15,080 for the 2080 hours in a typical work year.
Bloomberg reported in July 2018 that real GDP per capita has grown substantially since the Great Recession, but real compensation per hour, including benefits, hasn't increased at all. An August 2017 survey by CareerBuilder found that eight out of ten U.S.
total trade amounted to $4.2trillion in 2018.
economy in 2018, while its labor share of income was 43% in 2017.
recovery becoming the second-longest on record by April 2018.
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.
Annualized, nominal GDP reached $20.1trillion in Q1 2018, the first time it exceeded $20trillion.
Real GDP grew at a quarterly annualized rate of 2.2% in Q1 2018, 4.2% in Q2 2018, 3.4% in Q3 2018 and 2.2% in Q4 2018; the Q2 rate was the best growth rate since Q3 2014, and the overall yearly GDP growth of 2.9% in 2018 was the best performance of the economy in a decade.
In 2018, income inequality was at the highest level ever recorded by the Census Bureau, with a Gini index of 0.485. Others disagree, saying that the inequality issue is a political distraction from what they consider real problems like chronic unemployment and sluggish growth.
income earners have taken $50trillion from the bottom 90% between 1975 and 2018. ===Household net worth and wealth inequality=== As of Q4 2017, total household net worth in the United States was a record $99trillion, an increase of $5.2trillion from 2016.
home ownership rate in Q1 2018 was 64.2%, well below the all-time peak of 69.2% set in Q4 2004 during a housing bubble.
worker. As of 2018, the number of U.S.
Bloomberg reported in July 2018 that real GDP per capita has grown substantially since the Great Recession, but real compensation per hour, including benefits, hasn't increased at all. An August 2017 survey by CareerBuilder found that eight out of ten U.S.
A May 2018 report by the U.N.
The Commonwealth Fund estimated in May 2018 that the number of uninsured increased by four million from early 2016 to early 2018.
She writes that "middle-class life is now 30% more expensive than it was 20 years ago." In February 2019, the Federal Reserve Bank of New York reported that seven million U.S.
A May 2019 poll conducted by NPR found that among rural Americans, 40% struggle to pay for healthcare, food and housing, and 49% could not afford a $1,000 emergency.
US commercial banks had $20trillion in assets as of August 2020.
In the first two quarters of 2020, the U.S.
In 2020, the growth rate of the GDP has started to drop as a result of the COVID-19 pandemic, resulting in the GDP shrinking at a quarterized annual growth rate of −5.0% in Q1 2020 and −32.9% in Q2 2020, respectively. As of 2014, China passed the U.S.
In 2014 and again in 2020, the International Trade Union Confederation graded the U.S.
The unemployment rate of young African Americans was 28.2% in May 2013. The unemployment rate reached an all-time high of 14.7% in April 2020 before falling back to 11.1% in June 2020.
Due to the effects of the COVID-19 pandemic, Q2 GDP in the US fell 32.9% in 2020. ===Employment by sector=== U.S.
According to a 2020 study by the RAND Corporation, the top 1% of U.S.
It has the world's fifth-highest per capita GDP (nominal) and the seventh-highest per capita GDP (PPP) in 2021.
The Boston Consulting Group posited in June 2017 report that 1% of the Americans will control 70% of country's wealth by 2021. The top 10% wealthiest possess 80% of all financial assets.
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