THE ECONOMY OF THE USA

Lead-in:

1. free enterprise system –система вільного підприємництва

2. consumers – споживачи

3. have risen enormously – значно зросла

4. purchasing power – купівельна спроможнісь

5. gross national product–валовий національний продукт

6. per capita – на душу населення

7. retail businesses – роздрібна торгівля

The American economy is a free enterprise system that has emerged from the labors of millions of American workers; from the wants that American consumershave expressed in the marketplace; from the efforts of thousands of private business people; and from the activities of government officials at all levels.

The nation’s income and productivity have risen enormously over the past 80 years. In this period, the money for personal consumption tripled in real purchasing power. The gross national product per capita has grown four times, reflecting the growth in labour productivity.

Together all sectors of the American economy produce almost $4.000 million dollars worth of goods and services annually. Their consumption is spread widely. Most Americans consider themselves members of the middle economic class, and relatively few are extremely wealthy or poor.

Despite the fact that the United Nationals government supports many segments of the nation's economy, economists estimate that the public sector accounts for only one-fifth of American economic activity, with the other part in private hands. In agriculture, for example, farmers benefit from public education, roads, rural electrification, but their land is private property to work pretty much as they desire. More than 87% of farms are owned by the people who operate them; the rest are owned by business corporations. With increasingly improved farm machinery, seed and fertilizers, more food is produced each year, although the number of farmers decrease annually.

The bulk of America's wealth is produced by private industries and businesses — ranging from giants like General Motors, which sells $96,371 million worth of cars and trucks each year — to thousands of small, independent enterprises. America has traditionally supported free trade. Some 75% of American products currently face foreign competition within markets in the USA.

American industries have become increasingly more service-oriented. Of 12.6 million new jobs created since 1982, almost 85% have been in service industries. They include retail businesses, hotels and restaurants, communication and education, entertainment and recreation, federal and local government, office administration, banking and finance, and many other types of work. Careers in technical, business and health related fields have particularly experienced employee growth in recent years.

Although the American economy is not perfect, it does do what is expected of marketplace competition — gives Americans the opportunity to compare quality and prices and to decide what they really want to buy. As a result of the creativity, initiative and hard work which free enterprise has encouraged, the USA have become one of the most prosperous nations in the world.

Ø Questions for comprehension check-up and discussion:

1. How can you characterise the American economy?

2. How much has the national product per capita grown?

3. How much do all American sectors produce annually?

4. What role does the public sector play?

5. Who is the bulk of American wealth produced by?

6. What changes have taken place in American industries?

7. Why do you think the USA have become one of the most prosperous nations in the world?