The majority of the country can be found in North America, but the United States also has some territories in the Pacific.

Since its independence from the U.K. on the Fourth of July back in 1776, the U.S. has become an economic superpower not just in the West but also in the whole world.

Being the world’s largest economy, the U.S. plays a serious role in the global market.

Just about any economic development in the U.S., such as a rise or fall in consumer spending or an affair by its President, that is made public, could create quite a hefty impact on economies all over the world!

United States of America

United States: Facts and Figures

  • Neighbors: Canada, Mexico, Puerto Rico, Cuba
  • Size: 3,794,101 square miles
  • Population: 309,349,689
  • Density: 87.4 people per square mile
  • Capital City: Washington, D.C.
  • Head of Government: President Joe Biden
  • Famous Influencers: Kim Kardashian, Charli D’Amelio, JennaMarbles, Logan Paul
  • Currency: U.S. Dollar (USD)
  • Main Imports: Industrial supplies (crude oil, etc.), capital goods (computers, telecom equipment, automobile parts, office machines, electric power machinery), consumer goods (automobile, clothing, medicines, furniture, toys), and agricultural products
  • Main Exports: Capital goods (transistors, aircraft, automobile parts, computers, telecom equipment), industrial supplies (organic chemicals), consumer goods (automobiles, medicines), agricultural products (soybeans, fruit, corn), Barbies, Xbox consoles, and Apple iPods
  • Import Partners: China (19%), Canada (14.1%), Mexico (12%), Japan (6.4%), Germany (4.7%)
  • Export Partners: Canada (18.9%), Mexico (14%), China (7.2%), and Japan (4.5%)
  • Time Zones: GMT -10, GMT -9, GMT -8, GMT -7, GMT -6, GMT -5
  • Website:

Economic Overview

The U.S. is widely considered to be the richest country in the world, producing about $16.24 trillion in output in 2012.

It ranked 13th in 2012 in terms of per capita income – that’s just the country’s total income divided by its population – of about $51,700 in a year.

The U.S.’s main industries are aircraft, automobiles, transistors, telecom equipment, and other industrial materials.

Although it might seem that the US economy is heavily oriented towards the manufacturing of physical goods, 70% of its output actually comes from the services sector!

Speaking of trade, one key element of the U.S. economy is that the country is notorious for running huge trade deficits (i.e., the total value of goods flowing into the country is more than the total value of those going out).

The U.S. is also home to the New York Stock Exchange, which is the largest stock exchange in the world.

It is also home to the world’s largest bond market, with a market capitalization of over $31 trillion and over $822 billion in bonds traded daily on average.

Being the top economy in the world in today’s globalized market, any domestic event affecting the U.S. also has the potential to affect markets around the world…

Yes, even the foreign exchange market!

Monetary & Fiscal Policy

The Federal Reserve, more commonly called the Fed, is the U.S.’s main governing body when it comes to setting and implementing monetary policy.

Monetary policy is just the way the Fed controls the availability and supply of money in the economy and what makes the Fed special from other central banks is that its objectives are based on longer-term effects of its monetary policy.

The Fed has two main objectives. The first one is keeping the prices of consumer goods and services stable and the second one is making sure that there is sustainable economic growth.

In other words, the Fed just wants to make sure that yo Benjies doesn’t lose value and yo momma and poppa have jobs!

Jerome Powell

Within the Fed is the Federal Open Market Committee (FOMC). Currently led by Fed Governor, Jerome Powell, aka “JPOW,” the FOMC is tasked to make sound and rational decisions on monetary policy.

The FOMC has two main weapons to use in its battle against inflation and achieve its long-term objectives: open market operations and the Fed’s Funds Rate.

The Fed’s first line of defense, its open market operations, is the buying or selling of government financial instruments like securities, notes, and bonds.

The Feds Funds Rate is the interest rate that banks charge each other for overnight loans.

Banks use these loans to make sure they have enough to meet the Fed’s reserve requirement.

These reserves are kept at their local Federal Reserve bank or as cash in their vaults.

Now, the one accountable for fiscal policy decisions is the U.S. Treasury.

Fiscal policy is the use of government spending or tax collection to influence the direction of the economy.

To encourage business activity, the U.S. Treasury, for instance, could choose to lower taxes and to allot more budget on capital infrastructures like highways, schools, broadband, secret military ninja bases, etc.

On the other hand, if inflation starts to get out of hand, it could increase tax rates and cut spending.