"The economy" is the term used to describe the system of making, distributing, and consuming material goods and services. The many facets of a country's economy include the spending habits of consumers, labor issues, employment patterns, the banking and financial industries, taxes, and the government regulation designed to help keep the economy running smoothly. There are two …
The American workforce is made up of many different types of jobs that are categorized into sectors defined by the North American Industry Classification System (NAICS; pronounced "Nakes"). Adopted in 1997, NAICS was devised by the U.S. Economic Classification Policy Committee in conjunction with Statistics Canada and the Instituto Nacional de Estadística, Geografia e Informática of Mexico, and is the standard classification system for businesses throughout the contin…
World merchandise trade totaled $7.3 trillion in 2003, and trade in commercial services reached $1.8 trillion, according to the World Trade Organization (WTO) in International Trade Statistics 2004 (Geneva, Switzerland: World Trade Organization, 2004). Despite its economic dominance—as shown by per capita Gross Domestic Product (GDP) in Figure 3.1—the United States is only one player…
Securities (stocks, bonds, and mutual funds) and commodities (raw materials and foreign currencies and securities) markets in the United States are used by corporations to raise money for their business operations and by individuals and banks to build wealth and, in some cases, pay for retirement. These markets have fueled periods of astounding economic growth (called bull markets), but they have …
From small, independent companies to international corporations, American businesses play a vital role in the functioning of the economy. The United States is often said to have a "boot strap" society, meaning that the economic opportunities provided by the country's system of government allow people to "pull themselves up by their boot straps" to succeed financi…
In February 2005 there were approximately 140.1 million people in the American labor force. The size and diversity of this group are its greatest strengths and have led to the passage of relatively strict labor laws to protect American workers from discrimination on the basis of gender, age, race, ethnicity, religion, sexual orientation, and other factors. Relatively high wages and better working conditions have attracted workers from around the world who hope to improve their standard of living…
By the early twenty-first century the United States was a society driven largely by consumerism—not just economically, but socially and culturally as well. This consumer culture, which began its rise after World War II ended in 1945, reached unprecedented levels by the early 2000s, with consumer spending accounting for more than 67% of gross domestic product in 2003. Such aggressive spendin…
Governments are responsible for providing services that individuals cannot effectively provide for themselves, such as military defense, fire and police departments, roads, education, social services, and environmental protection. To generate the revenue necessary to provide these services, governments institute taxes based on income, consumption (sales taxes), and wealth (property and estate taxes). Taxes are broadly defined as being either direct or indirect. Direct taxes (for example, the fed…