U2 Evidencia 2

UNIVERSIDAD AUTNOMA
DE NUEVO LEN
Facultad de Ingeniera Mecnica y

Elctrica
Cultura De La Lengua Inglesa

Unidad 2: Tradiciones y sociedad actual
Evidencia 2
Hora: N1
Alumno: Csar Orlando Moreno De Hoyos
Matricula: 1691302
ING. JESUS ESTRADA

Economy in United States and United Kingdom
The US has the most technologically powerful economy in the world, with a per
capita GDP of $54,800. US firms are at or near the forefront in technological
advances, especially in computers, pharmaceuticals, and medical, aerospace, and
military equipment; however, their advantage has narrowed since the end of World
War II. Based on a comparison of GDP measured at Purchasing Power Parity
conversion rates, the US economy in 2014, having stood as the largest in the world
for more than a century, slipped into second place behind China, which has more
than tripled the US growth rate for each year of the past four decades. In the US,
private individuals and business firms make most of the decisions, and the federal
and state governments buy needed goods and services predominantly in the
private marketplace. US business firms enjoy greater flexibility than their
counterparts in Western Europe and Japan in decisions to expand capital plant, to
lay off surplus workers, and to develop new products. At the same time,
businesses face higher barriers to enter their rivals' home markets than foreign
firms face entering US markets. Long-term problems for the US include stagnation
of wages for lower-income families, inadequate investment in deteriorating
infrastructure, rapidly rising medical and pension costs of an aging population,
energy shortages, and sizable current account and budget deficits. The onrush of
technology has been a driving factor in 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
comparable pay raises, health insurance coverage, and other benefits. But the
globalization of trade, and especially the rise of low-wage producers such as
China, has put additional downward pressure on wages and upward pressure on
the return to capital. Since 1975, practically all the gains in household income have
gone to the top 20% of households. Since 1996, dividends and capital gains have
grown faster than wages or any other category of after-tax income. Imported oil
accounts for nearly 55% of US consumption and oil has a major impact on the
overall health of the economy. Crude oil prices doubled between 2001 and 2006,
the year home prices peaked; higher gasoline prices ate into consumers' budgets
and many individuals fell behind in their mortgage payments. Oil prices climbed
another 50% between 2006 and 2008, and bank foreclosures more than doubled in
the same period. Besides dampening the housing market, soaring oil prices
caused a drop in the value of the dollar and a deterioration in the US merchandise
trade deficit, which peaked at $840 billion in 2008. Because the US economy is
energy-intensive, falling oil prices since 2013 have alleviated many of the problems
the earlier increases had created. The sub-prime mortgage crisis, falling home
prices, investment bank failures, tight credit, and the global economic downturn
pushed the US into a recession by mid-2008. GDP contracted until the third quarter
of 2009, making this the deepest and longest downturn since the Great
Depression. To help stabilize financial markets, the US Congress established a
$700 billion Troubled Asset Relief Program (TARP) in October 2008. The
government used some of these funds to purchase equity in US banks and
industrial corporations, much of which had been returned to the government by
early 2011. In January 2009, Congress passed and President Barack Obama
signed a bill providing an additional $787 billion fiscal stimulus to be used over 10
years - two-thirds on additional spending and one-third on tax cuts - to create jobs
and to help the economy recover. In 2010 and 2011, the federal budget deficit
reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth
of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and
other sources are lower, as a percentage of GDP, than those of most other
countries. Wars in Iraq and Afghanistan required major shifts in national resources
from civilian to military purposes and contributed to the growth of the budget deficit
and public debt. Through 2014, the direct costs of the wars totaled more than $1.5
trillion, according to US Government figures. In March 2010, President Obama
signed into law the Patient Protection and Affordable Care Act, a health insurance
reform that was designed to extend coverage to an additional 32 million Americans
by 2016, through private health insurance for the general population and Medicaid
for the impoverished. Total spending on healthcare - public plus private - rose from
9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the
Dodd-Frank Wall Street Reform and Consumer Protection Act, a law designed to
promote financial stability by protecting consumers from financial abuses, ending
taxpayer bailouts of financial firms, dealing with troubled banks that are ""too big to
fail,"" and improving accountability and transparency in the financial system - in
particular, by requiring certain financial derivatives to be traded in markets that are
subject to government regulation and oversight. In December 2012, the Federal
Reserve Board (Fed) announced plans to purchase $85 billion per month of
mortgage-backed and Treasury securities in an effort to hold down long-term
interest rates, and to keep short term rates near zero until unemployment dropped
below 6.5% or inflation rose above 2.5%. In late 2013, the Fed announced that it
would begin scaling back long-term bond purchases to $75 billion per month in
January 2014 and further reduce them as conditions warranted; the Fed ended the
purchases during the summer of 2014. In 2014, the unemployment rate dropped to
6.2%, and continued to fall to 5.5% by mid-2015, the lowest rate of joblessness
since before the global recession began; inflation stood at 1.7%, and public debt as
a share of GDP continued to decline, following several years of increases. In
December 2015, the Fed raised its target for the benchmark federal funds rate by
0.25%, the first increase since the recession began, but the Fed has opted to hold
the target rate steady at 0.25%-0.5% through the first three quarters of 2016, with
US GDP growth falling below 2% in each of those quarters.
The UK, a leading trading power and financial center, is the third largest economy
in Europe after Germany and France. Agriculture is intensive, highly mechanized,
and efficient by European standards, producing about 60% of food needs with less
than 2% of the labor force. The UK has large coal, natural gas, and oil resources,
but its oil and natural gas reserves are declining; the UK has been a net importer of
energy since 2005. Services, particularly banking, insurance, and business
services, are key drivers of British GDP growth. Manufacturing, meanwhile, has
declined in importance but still accounts for about 10% of economic output.
In 2008, the global financial crisis hit the economy particularly hard, due to the
importance of its financial sector. Falling home prices, high consumer debt, and the
global economic slowdown compounded Britain's economic problems, pushing the
economy into recession in the latter half of 2008 and prompting the then BROWN
(Labour) government to implement a number of measures to stimulate the
economy and stabilize the financial markets. Facing burgeoning public deficits and
debt levels, in 2010 the then CAMERON-led coalition government (between
Conservatives and Liberal Democrats) initiated an austerity program, which has
continued under the new Conservative majority government. However, the deficit
still remains one of the highest in the G7, standing at 4.1% of GDP as of mid-2016,
and Britain has pledged to lower its corporation tax from 20% to 17% by 2020.
Britain had a debt burden of 92.2% GDP at the end of 2016.
While the UK is one of the fastest growing economies in the G7, economists are
concerned about the potential negative impact of the UKs vote to leave the EU.
The UK has an extensive trade relationship with other EU members through its
single market membership and economic observers have warned the exit will
jeopardize its position as the central location for European financial services.
References
https://www.forbes.com/places/united-states/
https://www.cia.gov/library/publications/the-world-factbook/geos/uk.html

U2 Evidencia 2

Uploaded by

Copyright:

Available Formats

U2 Evidencia 2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

U2 Evidencia 2

Uploaded by

Copyright:

Available Formats

UNIVERSIDAD AUTNOMA

Facultad de Ingeniera Mecnica y

Cultura De La Lengua Inglesa

ING. JESUS ESTRADA

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.