unit 3 economy.pptVIP

Chapter 3 American Economy American Economy Contents: 1. Industrial Revolution 2. General Survey 3. Industries 4. Agriculture American EconomyIndustrial Revolution Adam Smith Alexander Hamilton Early American industries Second development A Third development A fourth development New era for the United States American EconomyIndustrial Revolution “The Wealth of Nations” Adam Smith American EconomyGeneral Survey 1. The structure of the economy 2. The position in the world 3. Inflation and Deficit American EconomyGeneral Survey Structure of the economy 1. Privately-owned business 2. State-owned business 3. non-profit organizations American EconomyGeneral Survey structure of the employees 1. self-employed (75%) 2. government workers (21%) 3. employees of nonprofit organizations (4%) American EconomyGeneral Survey Position of the American Economy 1. “superpower” in world affairs 2. dominant position of the dollar “Bretton Woods System” American EconomyGeneral Survey Bretton Woods System 1. most major currencies are pegged to the US dollar 2. the dominant position of the dollar was formally established in the Bretton Wood system which was held in 1945 at Bretton Woods in New Hampshire and attended by 45 countries. 3. The conference also set up the IMF (International Monetary Fund), the World Bank, and GATT( the General Agreement on Tariffs and Trade), later known as WTO, it is a world trading system. American EconomyGeneral Survey Inflation Inflation is a general rise in the prices of goods ad services, the real or purchasing power value of money is reduced. E.g. Three dollars are necessary today to buy what two dollars bought yesterday. American EconomyGeneral Survey Deficit American economy is deficit financing. 1. $23 billion during WWⅠ 2. $13 billion more during the 1930s 3. $200 billion more during WWⅡ 4. By 199