Chapter 4-2
An Economic Leader
ESSENTIAL QUESTIONS:
DEFINE THE FOLLOWING:
- Free enterprise system
- Service industry
- Navigable
- Fossil fuel
- Acid rain
- Landfill
- Recycling
- Free trade
1. Why is the Midwest called “America’s Breadbasket”?
2. Discovery of what resource brought settlers to the West?
3. What is the goal of NAFTA?
4. Describe 2 characteristics of the US that have made it an economic leader in the world.
5. What reasons can you give for the economic changes taking place in the south?
Free enterprise system
- Basis of the economic system in USA
o Individuals have the right to run a business to make a profit
o Done so with limited government interference
o Allowed to keep their profits after paying taxes
o Free to work in whatever job they are qualified for
The World Economic Leader - USA
- Rich in resources
- Hard working – inventive people
- World’s largest economy
o GDP
§ Gross Domestic Product
§ How much money is made from the sale of goods and services
§ Larger than next two countries combined
· Japan
· China
o Produce ½ of world’s corn and 1/10 of world’s wheat
o 20% of world’s beef, pork and lamb
o Exports more food than any other nation
§ Ag exports account for only 2% of goods produced in the US
- US has rich mineral resources
o 1/5 of the world’s copper and coal
o 1/10 of the world’s petroleum reserves
o Large amounts of iron ore
§ Zinc
§ Lead
§ Silver
§ Gold
§ Many other minerals
· Mining only makes up 1% of the nation’s economy
- American factories
o Build cars/airplanes
o Computers
o Appliances
o Process foods
o Make medicines
§ Manufacturing accounts for 20% of the American economy
- Service industry
o Largest part of the economy
o Businesses that provide services to people instead of producing goods
§ Banking and financing
§ Entertainment
§ Tourism
§ Computer based online services
America’s Economic Regions
- 5 economic regions
o NE
o South
o Midwest
o Interior West
o Pacific
- Northeast
o Some farmers
§ Central PA, NY
· Grown grains and fruits
§ Rocky soil not suited to ag
o Plenty of deep ports and rivers
§ Boston, NY, Philadelphia, Baltimore
·
o Manufacturing, trade and fishing most important in this region
o Home of the first mills powered by water and coal
§ Coal in West Virginia and Pennsylvania
Important ports
- Boston, NY, Philadelphia, and Baltimore
o Also important centers for banking, insurance, and finance
o New York city
§ World financial capital
§ World trade center
· Fashion
· Entertainment
· Communication
o Washington DC
§ Nation’s capital
§ 100,000s of government employees
The South
- Rich soil along the Coastal Plain
- Ag flourishes
o Warm, wet climate
o La, Ark
§ Rice
§ Sugarcane
o Va, NC, SC
§ Tobacco
o Fl
§ Citrus fruit
o Ga
§ Peanuts and pecans
o Al
§ Corn and soybeans
o Texax
§ Cotton
· In other states also
§ Sorghum
§ Wheat
§ Raise livestock
- Expanding cities
o Growing industries
o Diverse population
o New manufacturing centers
§ Come from the NE
§ Textiles
§ Electrical equipment
§ Airplane parts
- Oil
o Texas
o La
o Al
§ Petroleum based product
- Service industries
o Tourism
§ Disney
§ Kennedy Space Center
§ Beaches
o New Orleans
§ Specialty foods
§ Jazz music
o Houston, Dallas, Atlanta, Miami
§ Major centers of business and finance
The Midwest
- “America’s Breadbasket”
- Miles of grains
o Corn
o Wheat
o Soybeans
o Oats
- “farm belt”
o Feeds people all over the world
- Dairy farms
o Milk and cheese
- Farms are now big business
o Very few family farms left
- Many navigable rivers
o Major port cities with connections to the oceans
§ Cincinnati, Louisville
· Send goods down the Ohio River
§ St. Louis, Memphis
· Located on the Mississippi
§ Chicago, Cleveland
· Ship goods through the Great Lakes through the St. Lawrence Seaway
- Abundant coal and iron resources
o Allows for manufacturing centers
§ Detroit
· “Motown”
· Head of the auto industry
§ Steel, heavy machinery, auto parts
The Interior West
- Magnificent landscapes
- Short of water
o Dry climate
o Discourages farming
o Grasses thrive
§ Good for grazing
· Cattle
· Sheep
§ Irrigation used extensively
o Large ranches
§ 4000 acres
- Many people also work in the service industry
o Tourism
§ Denver
§ Salt Lake City
§ Albuquerque
§ Phoenix
§ Yellowstone
§ Grand Canyon
§ Mesa Verde
The Pacific
- Includes
- Mineral deposits and energy resources located here
- Gold and silver discovered here in mountains and riverbeds
o Drew many settlers to the area
o Mining still important today
- Many people employed in the service industries here
o Denver
o Salt Lake City
o Albuquerque
o Phoenix
o Yellowstone Park
o Grand Canyon
o Mesa Verde
§ Native American settlement
§ Southwestern Colorado
The Pacific
- States of the west coast
- Alaska
- Hawaii
- Fertile soil
o California
o Oregon
o Washington
§ Fruits and vegetables
o Hawaii
§ Pineapple
§ Sugarcane
§ Coffee
§ Rice
§ Grow in rich volcanic soil
o Fishing is also a major industry
o Lumber industry
§ Washington, Oregon
o Minerals
§ Gold, lead, copper
o Alaska
§ Oil
- Factory workers
o California
o Washington
§ Manufacture airplanes
o San Francisco and Seattle
§ Computers
§ Software
o Los Angeles
§ Movie industry
In the 21st Century
- Strong challenges to face
o Pollution
o Energy
§ Burning fossil fuels
· Coal
· Oil
· Natural gas
§ Can create acid rain
· Harmful to land, rivers, lakes, plants
o Trash
§ Huge amounts generated
· Filling our ‘landfills’
§ Recycling
· Reusing materials
· Not practiced by many
- landfills
New Technology
- Our ability to develop new technology has been a major source of strength in the American economy
- New products created by researchers
o Make our lives easier-healthier
- Quality schools
o Educated and creative people
§ Satellite technology
§ Computers
§ Medicine
· Necessary for successful future
World Trade
- US leads the world in imports/exports
- Millions of jobs related to trade
- Many promote “free trade”
o Taking down trade barriers
§ Tariffs
§ Quotas
o Allow the free flowing of goods
- NAFTA - 1993
o North American Free Trade Agreement
o US
o Canada
o Mexico
- Promised to remove al barriers to trade among these countries