This document provides an overview of early American economic history, including: - Key questions economists ask and John Steele Gordon's influence on Founders' thinking - Definitions and calculations of GDP and GDP per capita - Details on consumption, investment, government spending, exports/imports in GDP calculation - Population and GDP figures for the US, China, and world - A timeline of events from Jamestown's founding in 1607 through the establishment of North and South Carolina in 1712.

1. Lecture 4
The Economic History of the United States

2. Practice Quiz
1.What two questions do economists always ask?
2.What economist influenced the Founders
thinking?
3.What is the definition of GDP?

3. GDP
Gross Domestic Product
The market value of all
final goods and services
produced in a country in
a given time

4. Percentage
Change
new number - old number
old number

5. ThisYear - LastYear
LastYear
ThisYear = 75
LastYear = 60
Percentage Change?

6. 75 - 60
60
15
60
.25 or 25%

7. How do you
calculate
GDP?

8. GDP =
C = Consumption
I = Investment
G = Government
X = Exports
M = Imports

9. GDP =
C + I + G + (X - M)

10. Consumption
Spending by
households on goods
and services, except
new housing

11. Investment
Spending on capital
equipment, inventories, and
structures, including new
housing

12. Government
Spending on goods
and services from
local, state, and
federal governments.

13. Net Exports
Exports minus
imports

14. Net Exports
Foreigners buying
exports minus
domestic residents
buying foreign goods

15. What is GDP?
C = 105
I = 40
G = 25
X = 30
M = 20

16. GDP
= C + I + G + (X - M)
= 105 + 40 + 25 +(30-20)
= 105 + 40 + 25 +10
= 180

17. GDP
GDP per Capita

18. GDP $100 trillion
Population 8 billion
GDP Per Capita $12,500
Per Day $34

19. GDP $24 trillion
Population 333 million
GDP Per Capita $72,072
United States
Per Day $197

20. GDP $18 trillion
Population 1.45 billion
GDP Per Capita $12,137
Per Day $34
China

21. activated their entrepreneurs

22. John Steele Gordon

23. Geography

25. 365 miles

27. Jamestown
144
-39 passage
105
-67 malaria, typhoid, dysentery
38

29. 1607
The First Adventure
Who came?
Opportunity

33. December 1609: 220
June 1610: 60
Abandon Colony
Meet three ships with 300 recruits
Return

34. 1616
Private Ownership
of
Land

35. 1618
20,000
1638
3,000,000
150x

36. 1619
90 women
125 pounds of tobacco
House of Burgess
Magna Carta 1215
Dutch ship with Africans

40. Maryland 1632
Refuge for Catholics
Toleration Act of 1649
Religious Freedom

45. Carolina
Eight Barbados Friends
Rice
Slavery
North and South 1712
Lord Ashley - John Locke