The document traces the development of the American economy from its colonial roots to modern times. It discusses how the economy had to be built from nothing by immigrants in the colonial era. In the 1800s, the economy grew but recessions were frequent and severe. By the 1900s, the US had the largest economy in the world and continued developing innovative industries. While no longer dominant, the American economy remains highly influential as a global leader in many high-tech fields.

1. 1.THE AMERICAN ECONOMY FROM THE FIRST STEPS
TO OUR DAYS.
The American economy had to
be built from the ground up. Those
immigrants who were not willing to
work hard seldom did well in the
New World. In the beginning there
were simply no farms or houses or
factories. Whatever was needed
had to be made by settlers
themselves. Or it had to be
imported at great expense. There
were a few skilled craftsmen and no
established class of agricultural
workers, or peasantry. Therefore, if
a new way to do the work couldn’t
be found, it just didn’t get done.

2. COLONIAL ERA
 The economic history of the United States has its
roots in European settlements in the 16th, 17th, and
18th centuries. The American colonies went from
marginally successful colonial economies to a small,
independent farming economy, which in 1776
became the United States of America. In 180 years,
the US grew to a huge, integrated, industrialized
economy that made up around one fifth of the world
economy. As a result, the US GDP per capita
converged on and eventually surpassed that of the
U.K., as well as other nations that it previously trailed
economically. The economy maintained high wages,
attracting immigrants by the millions from all over the
world.

3. 1800S
 In the 19th century, recessions frequently
coincided with financial crises. The Panic of
1837 was followed by a five-year depression,
with the failure of banks and then-record-high
unemployment levels. Because of the great
changes in the economy over the centuries, it is
difficult to compare the severity of modern
recessions to early recessions. Recessions after
World War II appear to have been less severe
than earlier recessions, but the reasons for this
are unclear.

5. 1900S
 The United States has been the world's largest
national economy since at least the 1920s. For
many years following the Great Depression of
the 1930s, when danger of recession appeared
most serious, the government strengthened the
economy by spending heavily itself or cutting
taxes so that consumers would spend more,
and by fostering rapid growth in the money
supply, which also encouraged more spending.
Ideas about the best tools for stabilizing the
economy changed substantially between the
1930s and the 1980s.

7. What was achieved in the first hundred years
is amazing. By 1890 e.g. the USA is producing
more iron and steel than GB and Germany
combined. By 1900, according to several
criteria, the USA had become the greatest
industrial nation, and its citizens had the
highest standard of living in the world.

8. Today the American economy no longer
dominates the world as it did then. But even
today, with only 5 % of world’s population and
about 6 % of its land area, the USA still
produces around 25% of the world’s industrial
products, agricultural goods and services.

9. Despite its fears, that it is no longer at the top
in almost every area, America remains the
world leader in a great many things. Among
these are e.g. biochemical and genetic
engineering, space research and development,
communications, computer and information
services, and similar high-technology fields.

10. Watch the video
http://finance.yahoo.com/blogs/daily-ticker/
don-t-believe-these-five-myths-about-the-
american-economy--joel-kurtzman-
181728603.html
 What the most common myth about
American economy?