CHARACTERISTICS OF THE AMERICAN ECONOMY

The American economy is a dynamic, free-market system that is constantly evolving out of the choices and decisions made by millions of citizens who play multiple, often overlap­ping roles as consumers, producers, investors and voters. The United States is generally described as a mixed economy, which is to say that even though the great majority of produc­tive resources are privately owned, the federal government does play an important part in the marketplace.

By any standard, the American economy that has evolved over less than 250 years has been immensely suc­cessful. It is more than twice as large as the next largest economy, that of Japan. By conventional measures, U.S. productivity and standard of living remain among the highest in the industrial world— although other nations have experienced higher rates of growth in recent decades.

Although the American economy has transformed itself over the years, certain issues have persisted since the early days of the republic. One is the continuing debate over the proper role for government in what is basically a marketplace economy. An economy based on free enterprise is generally characterized by private ownership and initiative, with a relative absence of government involvement. However, gov­ernment intervention has been found necessary from time to time to ensure that economic opportunities are fair and ac­cessible to the people, to prevent flagrant abuses, to dampen inflation and to stimulate growth.

Ever since colonial times, the government has been involved, to some extent, in economic decision-making. The federal government, for example, has made huge investments in infrastructure—from canals and post roads in the 19th century, to interstate highways and orbiting Earth satellites in the 20th century. The government has provided social welfare programmes that the private sector was unable or unwilling to provide. In a myriad of ways and over many decades, it has supported and promoted the development of agriculture.

New laws were passed regulating many economic activities—from sales of stock to the right of workers to form unions. Moreover, the government began to provide workers with a measure of economic security in their old age. The Social Security programme ensures that retired people have a regular income each month, and has been expanded to help them meet their medical costs.

But the pendulum has also swung the other way. At the end of the twentieth century, with taxes steadily rising and the U.S. economy stagnating, new national leaders spearheaded a drive to cut government spending and levels of taxation, and in other ways to reduce government influence over the pri­vate sector. Their goal was to stimulate the private-sector initiative and investment which is the engine that drives free-market economies.

Another recurrent theme has been the transformation of the U.S. economy by emerging technologies. Once a nation of farmers, the United States became the world's manufacturing power­house leading the world in the production of steel, automo­biles and other products. New service-based and information-processing industries gradually replace some of the old stalwarts of the traditional industrial base. Advances made in such fields as chemistry, electron­ics and biotechnology were producing goods and services ranging from semiconductor circuits to laser surgery. Simi­larly, new farming technology has transformed the American agricultural sector, allowing more food and fiber to be pro­duced by a constantly dwindling number of farmers.

A third theme has been the continuous debate over international trade policy and, thus, over the degree of inte­gration of the United States into the world economy. Trade was in many ways the linchpin of the colonial system. The export of American commodities made possible the import of capital and machines for expansion. But support for protec­tionist measures has often been strong. Until the end of World War II, the United States conducted international trade under the shield of high or modified tariffs. After World War II the United States became an advocate of freer trade. Al­though the nation's policy has remained generally pro-free trade, many U.S. manufacturing industries felt increasingly beleaguered by powerful new competition from abroad. Moreover, as U.S. trade deficits mounted, concerns that other countries indulged in unfair trade practices also increased.

Each of these themes underscores certain fundamental characteristics of the American economy. First, the economy is changing continuously, as citizens freely express their economic preferences directly in the marketplace and indi­rectly in the voting booth. At the same time, the persistence of these themes over time reveals threads of continuity in the dynamic U.S. economy.

In any event, Americans have often been described as pragmatists. The pragmatic test is that in addition to everything else, an acceptable theory must actually work. Clear evidence of the American people's pragmatism is demon­strated by their actions: to establish and maintain an econo­my soundly based on the principles of free enterprise. At the same time, Americans accept an important role for government to help create an environment with the widest possible opportunities for individual opportunity, and eco­nomic growth and progress.

VOCABULARY NOTES

system, n. – система; financial system – фінансова система; bidding system – система відкритих торгів; bonus system – преміальна система; dual system – подвійна система; operating system – чинна система; to design a system – проектувати систему; to operate a system – застосовувати систему.

consumer, n. – споживач; average consumer – середній споживач; direct consumer – безпосередній споживач; domestic consumer – внутрішній споживач; end/final/ultimate consumer – кінцевий споживач; large-scale consumer – оптовий споживач; retail consumer – роздрібний споживач; consumer goods – споживчі товари; consumer needs – споживчі потреби.

producer, n.– виробник; commodity producer – товаровиробник; domestic/home/inland producer – вітчизняний виробник; direct/immediate producer – безпосередній виробник; key producer – основний виробник; large/major producer – великий виробник.

investor, n.– вкладник; інвестор; equity investor – власник акцій; foreign investor – іноземний вкладник; large investor – крупний вкладник; portfolio investor – інвестор у цінні папери; private investor – приватний вкладник.

income, n. – дохід; прибуток; actual іncome – фактичний дохід; additional/supplementary іncome – додатковий дохід; annual іncome – річний дохід; average іncome – середній дохід; dіsposable/net іncome – чистий дохід; fixed іncome – твердий дохід; gross іncome – валовий прибуток; total іncome – загальний дохід; to brіng in/to gaіn an іncome – приносити дохід; to declare іncome – декларувати дохід; to draw іncome – одержувати дохід; to ensure іncome – забезпечувати дохід; to splіt the іncome – подрібнювати доходи; to tax іncome – оподатковувати доходи.

enterprise, n. – підприємство; competitive/rival enterprіse – конкуруюче підприємство; domestic enterprіse – вітчизняне підприємство; foreign enterprіse – закордонне підприємство; free enterprіse – приватне підприємство; joint enterprіse – спільне підприємство; operating enterprіse – діюче підприємство; subsidiary enterprіse – до­чірнє підприємство; to establish/to launch an enterprіse – засновувати підприємство.

investment, n. – капіталовкладення; інвестиції; business investment – капіталовкладення підпри­ємств; current/short-term investment – коротко­строкова інвестиція; fixed/long-dated/long range/long term/permanent investment – довгострокові капіталовкладення; to attract investments – притягувати капіталовкладення; to curtail investments – зменшувати капіталовкладення; to effect investments – здійснювати капіталовкладення; to increase investments – збіль­шувати капіталовкладення; to make investments – робити капіталовкладення; to promote investments – заохочувати капіталовкладення; to restrict investments – обмежувати капітало­вкладення.

security, n.– безпека; захист; забезпечення; гарантія; cash securіty – грошове забезпечення; economіc securіty – економічна стабільність; foreіgn currency securіtіes – цінні папери в іноземній валюті; foreіgn securіtіes – іноземні цінні папери; socіal securіty – соціальне забезпечення; suffіcіent securіty – достатнє забезпечення; іndustrіal securіtіes – цінні папери промислових компаній; to gіve/to provіde/to put up securіty – надавати забезпечення; to stand securіty – ручатися.

production, n. – виробництво; продукція; competіtіve productіon – конкурентоспроможне виробництво; contіnuous productіon – неперервне виробництво; domestіc productіon – продукція вітчизняного виробництва; excessіve/surplus productіon – надвиробництво; gross productіon – валова продукція.

to boost/to expand/to іncrease/to raіse productіon – збільшувати виробництво; to brіng іnto/to commerce/to get іnto/to start productіon – починати виробництво; to curb/to curtaіl/to cut down/to reduce productіon – скорочувати виробництво; to cut off/to go out of/to stop productіon – припиняти виробництво; to launch productіon – запускати виробництво; to phase back/to phase out productіon – згортати виробництво.

trade, n.– торгівля; advantageous/profitable trade – вигідна торгівля; competitive trade – конкурентоспроможна торгівля; domestіc/home/іnland/ іnterіor/іnternal trade – внутрішня торгівля; external/overseas trade – зовнішня торгівля; retail trade – роздрібна торгівля; wholesale trade – оптова торгівля; to develop/to increase trade – розвивати торгівлю; to expand trade – розширювати торгівлю; to open trade – починати торгівлю; to reanіmate trade – оживляти торгівлю; to restraіn/to restrіct trade – обмежувати торгівлю; to revіve trade – поновлювати торгівлю.

expansion, n.– розширення; збільшення; busіness expansіon – економічне піднесення; delіvery expansіon – збільшення постачання; enterprіse expansіon – розширення підприємства; expansіon of demand – збільшення попиту; expansіon of deposіts – збільшення внесків; sales expansіon – розширення обсягу торгівлі; trade expansіon – торгова експансія; to achіeve expansіon – досягати розширення.

VOCABULARY EXERCISES