United States » Introduction

Basic Economic Facts

The economic history of the United States has its roots in the quest of European settlers for economic gain in the 16th, 17th, and 18th centuries. The American colonies progressed from marginally successful colonial economies to a small, independent farming economy. Over the course of those years, the United States grew from thirteen British colonies with distinct economies and institutions to one of the most integrated, largest, and industrialized economies in the world, making up over a fifth of the world economy.

Economic activity varies greatly across the country. For example, New York City is the center for financial, publishing, broadcasting, and advertising industries, while Los Angeles is the most important center for film and television production. The Midwest is known for its reliance on manufacturing and heavy industry, with Detroit serving as the center of the American automotive industry. The Southeast is a major hub for medical research, tourism, and the textiles industry.

The largest sector in the United States economy is service, which employs roughly three quarters of the work force. The economy is fueled by an abundance of natural resources, such as coal, petroleum, and precious metals. However, the country still depends upon foreign nations for large amounts of resources, such as petroleum. In agriculture, the country is a top producer of corn, soy beans, rice, and wheat, with the Great Plains labeled as the "breadbasket of the world" for their tremendous agricultural output. The U.S. has a large tourist industry, ranking third in the world, and is also a leading export in goods such as automobiles, airplanes, steel, and electronics. The largest trading partner of the United States is Canada (19%), followed by the People's Republic of China, Mexico, and Japan.