Economic history of the United States
The economic history of the United States is about characteristics of and important developments in the economy of the U.S., from the colonial era to the present. The emphasis is on productivity and economic performance and how the economy was affected by new technologies, the change of size in economic sectors and the effects of legislation and government policy.
Further information: Technological and industrial history of the United StatesPre-colonial economy[edit]
Prior to the European conquest of North America, indigenous communities led a variety of economic lifestyles. Some were primarily agrarian whereas others prioritized hunting, gathering and foraging. While some early scholarship characterized these communities as non-market, more recent scholarship has made note of substantial and wide-ranging trade networks.[4]
In particular, much of the Mississippian drainage basin was characterized by settled agriculture and large towns in the pre-colonial period. According to a 2023 study, the plains were dominated by "organized, complex agricultural communities with settled populations that had opened and cleared land, domesticated plants, crafted irrigation systems, and determined the best rotation and fallow practices for a given region."[4]
Early 20th century[edit]
Economic growth and the 1910 break[edit]
The period from 1890 to 1910 was one of rapid economic growth of above 7%, in part due to rapid population growth. However, a sharp break in the growth rate to around 2.8% occurred from 1910 to 1929. Economists are uncertain what combination of supply and demand factors caused the break, but productivity growth was strong, enabling the labor cost per unit of output to decline from 1910 to 1929. The growth rate in hours worked fell 57% compared to the decline in the growth rate of output of 27%. It is generally accepted that the new technologies and more efficient business methods permanently shifted the supply and demand relationship for labor, with labor being in surplus (except during both world wars when the economy was engaged in war-time production and millions of men served in the armed forces). The technologies that became widespread after 1910, such as electrification, internal combustion powered transportation and mass production, were capital saving. Total non-residential business fixed capital spending fell after 1910 due to the fall of investment in structures.[253]
Great Depression and World War II: 1929–1945[edit]
Pre-war industry, commerce, and agriculture[edit]
Despite the Great Depression and World War II, the middle decades of the 20th century were among the highest for productivity growth.[278] [263] The research developed through informal cooperation between U.S. industry and academia grew rapidly and by the late 1930s exceeded the size of that taking place in Britain (although the quality of U.S. research was not yet on par with British and German research at the time).[279]
GDP per capita growth.
Real GDP per capita in the United States
Historical growth of the U.S. economy from 1961 to 2015
GDP per person in the United States
US Gross Private Domestic Investment and Corporate Profits After Tax as shares of Gross Domestic Product
US share of world GDP (%) since 1980.
US share of world GDP (nominal) peaked in 1985 with 32.74% of global GDP (nominal). The second-highest share was 32.24% in 2001.
US share of world GDP (PPP) peaked in 1999 with 23.78% of global GDP (PPP). The share has been declining each year since then.
U.S. in global economy
