US Economic Development
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With per capita GDP of $48,000, as estimated in 2008, US have strongest and largest economy of world. US economic development also includes GDP as per official exchange rate, which is estimated to be $14.33 trillion. Real growth of GDP, as was found for year 2008, was 1.4%. All these factors point to good economic development in US.
Economic development of US is also marked by contribution from different sectors of national economy. Contribution to GDP by agricultural sector was 1.2%, while contribution by industrial sector was 19.6% for fiscal year 2008. Service sector of US economy contributed 79.2 percent to national GDP as was recorded in 2008.
US Economy is technologically powerful and is a market oriented economy, where most decisions are taken by private individuals and business firms. Business firms of US experience greater flexibility as compared to their compatriots in Western Europe and Japan. US economic development focuses on new products. In field of technological advances, mainly in computers, aerospace, medical and military equipment, US has shown great development in recent years. Technological power of US helps greatly in US economic development.
It has been recorded that since 1975, there has been increase in household income, which has gone up to 20%. Though there were some upheavals in country, they were not enough to affect overall gross domestic product of US. A war raged in March-April 2003 between US and Iraq and nation also survived serious damage caused by Hurricane Katrina in 2005. Though these had no effect on GDP, yet there were problems including fast growing medical and pension costs of an aged people, insufficient investment in economic infrastructure, considerable trade and budget deficits and stopping of family income in lower economic groups.
Trade deficit figures reached $847 billion mark in 2007, which came down to $810 billion in 2008. Exchange rate for dollar was also affected. There was a global crisis, which is still faced by nations all over world in form of global economic recession, bank failures, decrease in home prices and tight credits. In order to even out financial market condition, a $700 billion Troubled Asset Relief Program (TARP) was formed by US Congress in October, 2008. New president of US, Barack Obama will provide an extra $825 billion economic incentive package.