The U.S. Economy, 2009

For 200 years, there were substantial differences among U.S. regions in per capita incomes and economic growth. Each region had a distinct set of economic activities and, to a major degree, the differences in regional economic performance were linked to the differences in economic structure. Individual states experienced periods of expansion and contraction as the basic business activities dominating their economy expanded and contracted. These changes led to significant migration of people and businesses among regions and to a gradual narrowing, since the 1930s, of regional disparities. Over the period of 1990 to 2007, the United States experienced outstanding economic success. Many analysts expressed the view that this economic success rested on consistently high productivity growth. The public philosophy supported low taxes and low government expenditure for health, education and welfare, with a heavy reliance on the need for each individual to succeed on one's own. In the second half of the 20th century, a general recognition developed that knowledge has a major impact on economic growth, and that increasingly intense international competition is based upon knowledge and innovation. Each nation, as well as each region within a nation, has a distinct innovation system. At the forefront has been the United States. By the fall of 2008, it was clear that the United States had entered a major financial and economic crisis, and that reforms might be needed to achieve recovery and to prevent a recurrence.

• Globalization
• Government Regulation
• Business and Society