The biggest, the most deregulated and the best business environment
They say that the secret to the success of the American economy is the ability to adapt and be a leader. Also, private initiative is the “king” of this economy – anyone with a business idea can climb to the top of the corporate, but also disappear from it. Startups are numerous, and the business environment is deregulated, while according to statistics, being the best in the world for investments.
Somebody has said that one of the American business “secrets” lies in the non-egalitarian spirit, otherwise typical of Europeans. Bono Vox, the legendary singer of the Irish band U2, once explained the Irish and American spirit to Americans. Although a large percentage of Americans are of Irish descent, and the language in both countries is the same, when an American sees a mansion on a hill, they will enthusiastically say: “One day, I’m gonna be like him!”. The Irishman will grit his teeth and say: “One day, I’m gonna get him!”
“The United States economy has its currency, the US dollar, and the language, English, a means of trade and communication references around the world, which are two huge advantages”
Either way, the United States is the wealthiest, most powerful, and most influential country on the planet Earth. Its nominal GDP, estimated at more than $ 20.5 trillion in July 2019, represents approximately 1/4 of the world’s nominal GDP. Only when we compare the EU’s GDP with the US or China’s GDP, with more than a billion people, then we can notice the frighteningly huge outlines of the American economy. GDP at purchasing power parity in the United States represents 1/5 of world GDP at PPP. In return, the United States maintains a high level of production and GDP per capita (PPP) of about $53,042, which is the seventh-largest in the world, making the United States, in these circumstances, one of the richest nations in the world. They are also the largest industrial producer in the world and the largest trading country in the world, with China as its main trading partner, as are its neighbours – Canada and Mexico – with which the US forms an economic union.
The United States economy has its currency, the US dollar, and the language, English, a means of trade and communication references around the world, which are two huge advantages. The United States is a mixed-type capitalist economy that has managed to maintain a stable growth rate of global GDP, moderate unemployment, and a high level of research and capital investment. It is, not counting the colonial empires, the world’s largest national economy since the 1890s. Currently, most of the economy is based on the service sector, but unlike most post-industrial countries, it still maintains an important and competitive industrial sector, specializing in high technology and leading sectors, which accounts for 20% of global manufacturing output. That is another secret of American robustness.
Of the world’s 500 largest companies, 133 are based in the United States, twice as many as any other country in the world. The US labour market has attracted immigrants from all over the world and its net migration rate is among the highest in the world. The country has the highest number of business facilities and is ranked 4th in the Global Competitiveness Index. Its powerful currency, the US dollar, accounts for 60% of the world’s reserves, while the Euro accounts for 24%. The US has the largest financial market and it has one of the main roles in influencing international economic and political decisions. The value of foreign investment in the US was estimated at $ 2.4 trillion in 2011, which puts the country in the first place. The US investments abroad amount to 3.3 trillion dollars. America has been the leading agricultural power for 150 years – they are the largest producer of soybeans and corn. The US is no longer the largest manufacturer of motor vehicles (they are currently 2nd), but they have conquered the world with their cars. They infected us with perfected versions of other people’s and their own inventions – shopping malls, movies, the Internet and the media and have Americanized the whole planet. Simply, beginning with the former 13 disobedient colonies, they worked hard and expanded their country. In the end, they settled on top of the world’s economy. What a journey!
By Žikica Milošević