Written by: Vince Z.
According to the World Population Review, the United States had by far the greatest nominal GDP (Gross Domestic Product) at the start of 2020, at a value of 20.49 million. Coming in well behind at second, comes China, with quadruple the population of the United States, with a nominal GDP of 13.4 trillion. As one can see, the United States dominates world nominal GDP, as shown below.
(Source: World Population Review)
What makes the United States economy superior?
The United States of America’s economy is simply superior due to capitalistic ideals, moderate population growth, astoundingly low unemployment rates, and increasingly high consumer spending. The United States economy has an outstanding GDP per capita, coming in at 10th in the world at $67,063. While 10th may not seem all that great, the United States has a population more than 14 times greater than all 9 countries ahead of it. The United States economy is bolstered by the second most natural resources in terms of value, while coming in first in natural gas and oil production. Aside from essential natural resources, America is renowned for its support of entrepreneurship, by creating free and unrestricted markets aside legal protections for property. Additionally, the United States has done a great job creating an inflation rate in the ideal range 2%-4%, especially in recent years. The International Monetary fund shows past years and gives a prediction towards the next few years of America’s inflation.
As one can see, since 2010, the inflation rate has always been between 0%-4%, helping to keep a steady economy promotes production and increases GDP. America’s free market system allows for free trade, imports and exports, along with tax cuts for big businesses, encouraging production in the United States. This free market system provides businesses the ideal environment to produce goods, along with the ability to sell goods anywhere in the world.
Additionally, President Trump has implemented his own major tax cut, and, with the help of global economy growth, the United States economy is flourishing. As Trump focuses on manufacturing, American exports rose 5.5% in 2017 (CNN). As the amount of goods Americans export increases, so does the amount of jobs, as factories in America added around 200,000 new jobs, leading to a decrease in unemployment. Tax cuts for big businesses and tariffs on imported goods help America to continue its dominance of the global economy, even while the global economy grows.
To conclude, the United States record-setting economy is not dependent on simple actions of a singular president like Barack Obama or Donald Trump. It is America’s system of government, the idea that businesses should have freedom to produce, and entrepreneurship should be promoted, that leads to dominance in the future. As the United States moves forward, it should absolutely continue its economic dominance. Following the ideals of an economy, with an unemployment rate between 2%-4%, GDP growth between 2%-4%, and minimal inflation should make America’s economic superiority prevail. Overall, it is clear that the principles of free trade, lowered business restrictions, and a culture of entrepreneurship is the model for economic success in the coming age.
Works Cited
GDP Ranked by Country 2020, worldpopulationreview.com/countries/countries-by-gdp/.“Why America's Economy Is so Healthy.” CNNMoney, Cable News Network, money.cnn.com/2018/01/26/news/economy/us-global-economy-2017/index.html.
Duffin, Erin. “U.S. - Projected Inflation Rate 2008-2024.” Statista, 13 May 2019, www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/.
I totally agree. Under a capitalistic system,tax cuts to big business and tariffed goods provides for a system that where an economy can flourish. This additional help not only helps our own economy increase but also leads to a better global economy as well. Nice job, Vince.
ReplyDeleteIt is important to remember that that gap between the United States and China may be closing, but with such a vast GDP per capita difference it is hard to even consider China becoming the leading economy even if it surpasses the United States in GDP. This is due to the population difference with china accounting for almost 3 times as many individuals.
ReplyDeleteAmerica is a dominant economy, yes. However, in recent years China has been implementing large scale industrialization. What do you say to America possibly being beaten out by China's revolution? I think even if China were to have a higher GDP, the population discrepancy would make it less impactful.
ReplyDeleteI wonder how much the nominal GDP of the United states differs from the Real GDP. Is there a difference in the rankings if we are looking at the GDP with respect to the inflation rate in say, 2008 or 2009 during the great rescission. As well as this, are the GDP's calculated with a central currency, or are they looking at the inflation rate of only their country. For instance, If we again looked at the real GDP in 2008 but compared the US and China, would the GDP be calculated off of Americas currency, China's or would they be calculated independently. If they are independent, what other outside factors could impact GDP?
ReplyDeleteI think there are many ups and downs to a capitalistic economy, but I do agree the US focuses heavily on entrepreneurship and all things Wall Street which has been a major factor in the way we've bounced back from high inflation rates. It's just within American culture to work, push, and do whatever is possible to continue to produce and sell at a high level. I also do wonder how our rGDP per capita compares to the GDPs you mentioned up top. Great post!
ReplyDeleteI totally agree with your statement in the final paragraph on how it doesn’t matter who is running our country and that the economy of the United States will be good for a very long time. I would say that the country under how it is run and who it is run under. Yes, the president has to make important decisions but things have been set in stone over the last couple decades on how this country should be run and what we need to do as citizens to keep it that way. Our low unemployment and our high GDP has to do with our country as a whole and not one person, Americans are driven to be the best that they can be and will always want the best for the country and a capitalist economy is the best way to do it. You could not have put it any better when finishing off your piece.
ReplyDeleteVince this is a really fascinating article and you did an above average job which is sick. Agreeing with Gannon, when you said "not dependent on simple actions of a singular president like Barack Obama or Donald Trump. It is America’s system of government, the idea that businesses should have freedom to produce, and entrepreneurship should be promoted, that leads to dominance in the future", I really had a reflective moment and I completely agree with you.I also wonder how much certain historical backgrounds.
ReplyDeleteI am a person who is not very knowledgeable about the happenings in the U.S. economy, but I feel like this article gave me a better understanding of how the U.S. performs in comparison to other countries. While the graphs and charts helped me to connect the dots, I really connected to your last paragraph as well similar to what the previous comments stated. Overall, the article was really well written and informative for all audiences to help people become more aware of what is happening in the U.S. economy.
ReplyDeleteI liked how you noted that the current US economy is not a product of any one policy or president. While I enjoyed reading what you wrote, it would have been interesting to see more into the recent changes in the economy and what has caused them, notably Trump's 2018 tax cuts that greatly boosted the economy (perhaps somewhat unsustainably). It would have also been great to see how the US compares to the rest of the world in terms of rGDP, not just nominal, since, as we discussed in class, nominal doesn't tell the whole story. Thanks for sharing, this was a great read!
ReplyDeleteI thought that it was really surprising how much lower China's nominal GDP was when compared to the US considering that China produces a lot of the goods in the US. It also would be pretty interesting to see the rGDPs per capita because I assume that the difference between the US and China would be even bigger with this measure. This was really a really interesting blog post, and it makes may curious about all of the factors that make America's economy so much better than every other country's.
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