US economy

An economy consists of the economic system of a country or other area, the labor, capital and land resources. The main factor of economy is the technological evolution, social organzation, geography, natural resources and ecology. These factors give context, content and set the conditions and parameters in which an economy functions. The economy of the United States is the world’s largest national economy. The U.S economy also maintains a very high level of output per capita. In 2009 it was estimated to have a per capita of $46,381 the 6th highest in the world. But today’s economy of US is decreasing due to the high-energy prices and real estate disasters. As global demand for goods diminishes the American economy is likely to slide further. The US dollars collapse is one of the major reasons of US economy flaws. A dollar collapse happens when the value of the dollar falls so fast. The collapse of the dollar means that everyone is trying to sell their dollar-denominated assets, and no one wants to buy them, driving the value of the dollar down to near zero. The reason of dollar collapse sis there must be a viable currency alternative for everyone to stampede into. American economy collapse has bad effect over the world economy. Like in Japan its economy would collapse if it were not for the billions of dollars per year gained in trading with America. When America goes into recession the world follows. When America economy booming the world’s economy strengthens. China also affects the US economy according to US economist the china trade US products and sell them in low cost that is also the reason of US economy decline. The economist predicts that coming economy of US decline because America has large trade and current deficits is because of the expansion of its money supply without the corresponding expansion of its productivity.

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