http://www.youtube.com/watch?v=o7ajmoLdhVQ

Economy of the United States

SSWG8

The student will describe the interaction of physical and human systems that have shaped contemporary Canada and the United

States.

c. Explain the reasons for the population distribution in Canada and the United States.

f. Analyze how transportation and communications improvements led to the growth of industry in the United States and the consequences of such

growth especially environmentally for both Canada and the United States.

Market Economy Characteristics

Private property ownership.

Freedom of enterprise and Choice

Motive of self-interest

CompetitionSystem of

markets and prices

The market addresses consumer wants

Market Economy

AdvantagesIndividuals can own businesses and

resourcesIndividuals can buy and sell goods

and servicesCompetition in the market leads to

greater choicesConsumers play a great role in the

economy

Market economyDisadvantageThe critical role of the

consumer in the market can create a tremendous divide between the poor and the wealthy

Multinational Corporations The U.S. is home to many multinational

corporations:

A. Nike, Adidas

B. Starbucks

C. Wal-Mart

D. McDonald’s,

Burger King, KFC

E. Hilton

NAFTA The United States, Canada, and Mexico are

part of an economic union called NAFTA, The North American Free Trade Agreement.

This agreement eliminates tariffs, or taxes, on imports between these three countries.

Mexico, US, and Canada

NAFTA continued Advantages:

1. Offer products at lower prices to USDue to no trade barriers

2. Has brought lots of wealth to the US

Disadvantages:

1. Businesses has moved to Mexico & CanadaCheaper labor

2. Hurt lots of factory jobs in US

United States wealth is credited to its:

1. Agriculture

2. Industry

3. Energy and minerals

United States’ Economy continued Agriculture and industry created a strong economy

and a high standard of living

Standard of living: a measurement of a person’s living conditions in a country Includes wealth, nutrition, life expectancy,

education, and job opportunities

South Economy

Historically, the South had an agricultural economy

Poorest region of the U.S. after the Civil War

The South lacked railroads & industry that was thriving in the Northeast

South Economy continued

Economies in the South focus on raw materialsMajor source of lumber

Forestry supports paper, pulp, & furniture industries

Cotton & tobacco are still major cropsCotton supports textile industry

South Economy continued

1960’s---South began to attract new industry for several reasons:No unions (1)Cheap wages (2)Cheap land (3)Favorable laws & regulations (4)Factories in better condition (5)

Example: foreign car companies

Northeast Economy

Political & financial center

Most industrialized region of the U.S.

Why industry developed in the N.E.? Country’s 1st industries developed here in the 19th

Century (1) Influx of European immigrants in 19th Century

helped promote industry (2)

Northeast Economy continued

Good transportation connections were important to N.E. development (3)

N.E. provides good port sites for shipping/fishing industry (4) Erie Canal

Midwest Economy Major farming region & leading producer of industrial goods

Midwest’s land is arable for growing crops

Some areas specialize in growing crops

Midwest sometimes called the “Nation’s Breadbasket”

Much that is grown here is exported around the world

Midwest Economy continued Midwest has a growing season that lasts about 200

days Growing season: average number of days between the

last frost of Spring & the first frost of Winter

Midwest sometimes called the Dairy Belt Minnesota, Wisconsin, Michigan

Wisconsin---one of the main producers of cheese, milk, other dairy products

Grass grows quickly here which produces feed for dairy cattle

Midwest Economy continued Corn/Grain Belt

Although corn is produced in mass quantity, it’s not the only crop grown in the Midwest

Soybeans, wheat, etc. Ethanol fuel

Using corn to produce ethanol fuelArguments for both sides:

Ethanol seen as more fuel efficient for carsCorn production is up in the Midwest, but more

farmers are growing corn for ethanol rather than food consumption

West Economy

Mining is a key economic activity in the Rocky Mts. Arizona, New Mexico, Utah are leading copper

producing states

Tourism imp. economic activity All of California, Yellowstone, Grand Canyon

Film industry, forestry, farming

West Economy continued

Silicon Valley

Term originated due to the numerous semiconductor/computer technology businesses in the area

Located south of San Francisco

Imp. to economy due to the major impact the computer has on the world