American economy and industry

23

American economy and industry



1 The USA economy

1.1 From the History of the USA economy

The roots the modern American economy go back to economic profit searches of European settlers in XVI , XVII and XVIII centuries . For this time New world has turned from the minimum successful colonial economy to a small independent farm and eventually the most complicated industrial economy.

In all colonies people lived basically on small farms and lived economically independent way of life. In process of growth of colonies auxiliary manufactures developed.

By XVIII century regional models of development were defined: the riches to colonies of the New England have brought shipbuilding and navigation; plantations of Maryland, Virginia, and also Northern and South Carolina (many of which used a slave labour) grew up tobacco and rice; laying in the middle of a colony of New York, Pennsylvania, New Jersey and Delaware transported the basic cereals and furs.

After getting of independence the Constitution of the USA as an economic charter asserted, that all country was the uniform or "general" market. In the trade between states there should not be no tariffs or taxes. According to the constitution the federal government could regulate trade with other countries, and also between states, set uniform laws on bankruptcy, let out money and regulate their cost, toestablish standards of measures and scales, to establish post departments, to build roads and to establish the rules regulating delivery of patents and copyrights. One of "fathers-founders" of the country and its first Minister of Finance Alexander Gamilton has put forward strategy of economic development at which the federal government would support arising industry by means of open grants and introduction of protectionist tariffs for import.

Becoming the president in 1801, Jefferson (1801-1809) has directed the efforts to development of more decentralised agrarian democracy. Fast economic growth of the USA in XIX century was prevented by periodic malfunctions in economy. New inventions and capital investments have led to creation of new industries and the further economic growth. In process of transport perfection the new markets constantly opened. The steamship has made river transport faster and more cheaply, however still building of the railways which have opened for development huge spaces of new territories had effect. These rough days there was no lack of plans how quickly to grow rich. Financial bigwigs instantly scrape together huge fortune while many others lost the savings. In the end of XVIII - the beginning of XIX centuries in Europe industrial revolution which was quickly threw to the United States has begun.

The destiny of the country and its economic system was solved by a victory of northerners in Civil war of the USA (1861-1865). The slaveholding system has been abolished, therefore the big plantations of a clap in the south of a steel less profitable. Industry which has quickly expanded thanks to war of the North roughly grew. The fast economic development which has followed Civil war has built a basis of modern industrial economy of the USA. The considerable quantity of opening and inventions has resulted in so deep changes, that their results sometimes named «the second industrial revolution». In the west of Pennsylvania oil has been found. The typewriter, phone, a phonograph and electric light have been invented. Freezing railway cars began to be used. And at last, to the XX-th century beginning the car has come instead of the carriage, and people have started to fly by planes.

1.2 The basis of the US economy

The American economy is described as a free enterprise system, which allows private business the freedom to operate for profit with minimum government regulation. The theoretical foundation of the American economic system was provided by Adam Smith whose economic ideas of free competition influenced the development of capitalism. From his standpoint the more people manufacture and trade the greater the competition. Competition benefits society by allowing the consumer to search for the best available product at the lowest price. Thus market forces, which Smith termed the invisible hands, control the allocation of goods while each participant in the market is seeking for his own self-interest.

Throughout the nineteen century market operated with a minimum government regulations. Since the 1930-s American capitalism has undergone a radical changes. Although a private enterprise flourishes, government regulation now exists in many areas of business ranging from product safety to labor conditions. Political conservatives complain of too much government regulation while the liberals are out for the enhance of government role in business and economy.

The country's reliance on private initiative and enterprise has produced impressive growth.

The economy of the United States today is the world's largest national economy. Its nominal GDP was estimated to be $14.3 trillion in 2009, approximately a quarter of nominal global GDP. Its GDP at purchasing power parity was also the largest in the world, approximately a fifth of global GDP at purchasing power parity. The U.S. economy also maintains a very high level of output per capita. In 2009, it was estimated to have a per capita GDP of $46,381, the 6th highest in the world.

Historically, the U.S. economy has kept a stable overall GDP growth rate, a low unemployment rate, and high levels of research and capital investment funded by both national and, because of decreasing saving rates, increasingly by foreign investors. It has been the world's largest national economy since 1870 and remains the world's largest manufacturer, representing 19% of the world's manufacturing output. In 2009, consumer spending coupled with government health care spending constituted 70% of the American economy. About 30% of the entire world's millionaire population reside in the United States (in 2009).[14] Furthermore, 40% of the world's billionaires are American. The US is also home to the world's largest stock exchange, the New York Stock Exchange. It also boasts the world's largest gold reserves and the world's largest gold depository, the New York Federal Reserve Bank. The United States is also home to 139 of the world's 500 largest companies, which is almost twice that of any other country. A large contributor to the country's success has also been a very strong and stable currency. The US dollar holds about 60% of world reserves, as compared to its top competitor, the euro, which controls only about 24%.

Since the 1960s, the United States economy absorbed savings from the rest of the world. The phenomenon is subject to discussion among economists. The US is by far the most heavily invested-into country in the world, with foreign investments made in the US measuring almost $2.4 trillion, which is more than twice that of any other country. The US is also by far the largest investor in the world, with US investments in foreign countries totaling over $3.3 trillion, which is almost twice that of any other country. Like other developed countries, the United States faces retiring baby boomers that have already begun withdrawing from their Social Security accounts; however, the American population is young and growing when compared to Europe or Japan. The United States public debt is in excess of $13 trillion and continues to grow at a rate of about $3.83 billion each day. Total public and private debt was $50.2 trillion at the end of the first quarter of 2010, or 3.5 times GDP. Domestic financial assets totaled $131 trillion and domestic financial liabilities totaled $106 trillion(appendix A,B).

The American labor market has attracted immigrants from all over the world and has one of the world's highest migration rates. The United States is ranked second, down from first in 2008-2009 due to the economic crisis, in the Global Competitiveness Report. The country is one of the world's largest and most influential financial markets, home to major stock and commodities exchanges like NASDAQ, NYSE, and AMEX.



1.3 Federal Reserve System

The Federal Reserve System is the central bank for the USA. It was established on December 23, 1913 to give the country an elastic currency, to provide facilities for discounting commercial paper, and to improve the supervising of banking. Since then the system's responsibilities have been broadened. Over the years stability and growth of the economy, a high level of employment, and stability in the purchasing level of a dollar and reasonable balance in transactions with other countries have come to be recognized as primary objectives of governmental economic policy.

The Federal Reserve System consists of the Board of Governors, the 12 District Reserve Banks and their branch offices, and the Federal Open Market Committee (appendix C).

The hub of the system is the 7-member Board of Governors in Washington. The members of the board are appointed by the president and confirmed by the Senate to serve 14-years terms.

The Board is the policy-making body. In addition to its policy-making responsibilities, it supervises the budget and operations of the Reserve Banks, approves the appointments of their presidents, and appoints three of each District Bank's directors.

The 12 Reserve Banks and their branch offices serve as the decentralized portion of the system, carrying out day-to-day operations such as circulating currency and coin and providing fiscal agency functions and payments mechanism services. The District Banks are: in Boston, New York, Philadelphia, Cleveland, Richmond , Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, San Francisco.

The system's principal function is monetary policy, which is controls using 3 tools: reserve requirements, the discount rate, and open market operations. Uniform reserve requirements, set by the Board, are applied to the transaction accounts and non-personal time deposits. Responsibility for setting the discount rate is shared by the Board of Governors and the Reserve Banks. Changes in the discount rate are recommended by the individual boards of directors of the Reserve Banks and are subject to approval by the Board of Governors.

The most important tool of monetary policy is open market operations. Responsibility for influencing the cost and availability of money and credit through the purchase and sale of government securities lies with the Federal Open Market Committee, composed of 7 members of the Board Governors, the president of the Federal Reserve Bank of New York, and 4 other Federal Reserve Bank presidents, who serve one-year terms on a rotating basis. The Committee bases its decisions on economic and financial developments and outlook, setting yearly growth objectives for key measures of money supply and credit. The decisions of the committee are carried out by the Domestic Trading Desk of the Federal Reserve Bank of NewYork.

The Federal Reserve Act prescribes a Federal Advisory Council, consisting of one member from each Federal Reserve District, who is elected annually by the Board of Directors of each of the 12 Federal Reserve Banks. The council meets with the Federal Reserve Board 4 times a year to discuss business and financial conditions and to make advisory recommendations.

The Consumer Advisory Council is a statutory body, including both consumer and creditor representatives, which advises the Board of Governors on its implementation of consumer regulations and other consumer-related matters.

1.4 Forms of ownership

The economy of the USA has various forms of a private property, and also the state and co-operative property. The private property is dominating. So, the pure volume of the saved up reproducible material riches which are in a private property (including and the personal material reproduced property of citizens), has made in 1997 year 19,8 bln. dollars. The same property which was the same year in the possession of the state, has made 5,1 bln. dollars. If, however, from the cumulative saved up private riches to subtract that its part which is in a personal property of citizens and does not serve the manufacture purposes (habitation and consumer goods of long using) the sum of the private saved up material riches (6,3 bln. dollars) appears quite comparable to the state material riches which, however, also does not serve in the majority to the manufacture purposes.

About a ratio of a private and a state ownership speak, for example, the sizes of the state and private actives where, besides material, non-material resources, including financial join also, and also the earth is. So, actives only corporations (joint-stock companies) and partnership (associations) have made in the USA in 1996г. 32,3 bln. dollars, and together with actives farms and the profitless organisations-75,3 of bln. dollars At the same time financial actives of the federal government have made in 1998 only 139,4 bln. dollars For comparison we will specify, that financial actives of corporations have made in 1996 5,4 bln. dollars. Comparison obviously not in favour of a state ownership.

The statistics of the USA gives detailed data about the federal material property as in the country, and abroad. The total amount of this property, by data for 30.09.1998, has made 244,3 bln. dollars Here buildings (126,8 bln. dollars - 55,3 % from a total sum), constructions and the equipment (84,4 bln. dollars, or 36,7 %) and the earth (18,3 bln. dollars, or 8 %) join.

The data cited above do not include the material property which is in possession of states and local authorities.

To federal constructions and the equipment belong systems on manufacture and distribution of the electric power, a communication system and the navigating equipment, systems of energy-, gas- and watersupply, the research equipment, roads and bridges, railways, systems of irrigation, air field coverings, port constructions, military property and technics, memorials and monuments.

The federal ground fund covers territory in 655 million acres (2646 million sq. km.) from which 56,6 % are necessary on natural territories protected by the state. Statistically cost of 590 million acres (90 % of all earths) is not estimated, as they initially belonged to the state. Specified above 18,3 bln. dollars concern to the remained 10 % of the earth got by the state at private owners.

Clearly, that taking into account the earth, and also numerous structures and the property, being in state possession, the sizes of its actives will essentially increase. As an additional indicator of the share of the State expenditure is shown in gross national product (approximately 18 % in 2000), that is reflexion of a place of the state in a social production in wider context.

Government sector development in the USA was carried out, as a rule at the expense of the state investments. So, for years of the Second World War with the budget means it has been constructed 2600 large industrial enterprises, basically military factories. The machine-building, chemical, metallurgical, ship-building enterprises, power stations, factories for manufacture synthetic rubber have been, created. During the post-war period the considerable part of factories has been sold to the private companies.

The state ownership in the USA makes about 20 % of national riches of the country, that lower, than in France, but higher, than in Germany and the Great Britain. The state takes upon financing of building of capital-intensive objects, carries out investments into those branches and spheres of an economy which do not represent commercial interest for the private capital. At the expense of public funds development of the newest hi-tech branches - the nuclear industry, electronics, the laser and space industry is financed also.

Laboratories concern a state ownership in the USA, universities, colleges research establishments. Scientific researchers are the major objects of the state capital investments. Public funds cover more than 90 % of the financial assets directed to the aviation industry and rocket production, nearby 2/3 in electronics and to the electrical engineer.

Management of the state enterprises in the USA is carried out by the corresponding ministries or the special constantly operating commissions created by the decision of the Congress. So, the enterprises of the Power sector managed by such organisations, as administration of electrification of rural areas, Management of a valley of Tennessee, a natural resources development Bureau etc.

The state enterprises of the nuclear industry submit to the Federal commission of an atomic energy, the enterprises of a mining industry to the Bureau of mines of the USA etc.

Typical feature of the American model of management of a state sector is transfer of the state enterprises of the USA to an operational administration and operation to private corporations.

Besides the core the state can give to the managing director a working capital. As the proprietor of the enterprise the state at the same time takes up care of sale of its production, provides with corresponding orders.

The private property - the basic pattern of ownership in a social production - is classified in the USA to several signs. Firstly, depending on the legal form of the organisation. To the given sign all firms of the USA are subdivided into three basic categories:

Corporations (the joint-stock companies) which in 1996 in the USA were 4,6 million, or approximately 20 % from the general number of firms;

Partnership (1,6 million, or about 7 %);

The individual enterprises (16,9 million, or 73 %).

Thus that from 1980г. the number of firms has increased in the USA almost twice (with 13 to 23 million units) proportions between number of corporations, partnership and the individual enterprises they have changed a little. I.e. for 80е at practically invariable share of number of corporations relative density of partnership has a little decreased and has increased - the individual enterprises.

Absolutely other distribution and a role of various organizational forms of the enterprises (property) look at the analysis of volume of their sales. In 1996г. for a share of corporations 89 % from total amount of sales of all managing subjects, partnership of 6 %, the individual enterprises of 5 % belonged. In 1980 to a share of corporations belonged the same of 89 % of sales, and here partnership and the individual enterprises have exchanged places: the share of partnership was below (4,5 %), and the individual enterprises above (6,5 %).

About value of this or that patterns of ownership are spoken by a sales volume, instead of quantitative distribution of those or other enterprises. From written above is clear, that the dominating form of a private property in the USA throughout last two decades is the corporate private property.

Such position considerably differs from the period of the beginning of the century when the predominating form of a private property was individual possession of the enterprise.

Corporations according to the corporate right of the USA are subdivided into two kinds - of corporation "C" which do not have restrictions on number of shareholders, and corporation "S" which can have no more than 35 shareholders and taxed as physical persons.

According to last statistical census of 1992 of corporation of the first group absolutely prevail in economy of the USA to their share 85 % of a sales volume of corporate sector of economy of the USA belonged.

All share capital of the USA shares approximately in an equal proportion between farms(citizens) and institutional investors. Among last the largest holders of actions are pension funds (17,6 % from sheathe share capital sizes). They are followed by mutual investment funds (5,2 %), bank trusts (3,2 %), the insurance companies (2,7 %).

The number of individual shareholders grew in the USA after the Second World War rates - from 8,6 million people in 1956 to 30,8 million in 1970г. And grew to 51,4 million people in 1990г. (21 % of the population of the country).

By available estimations, by 2000 about 30 % of the population (80 million people) owned actions of those or other corporations. Growth of number of shareholders in 90е reflects stable economic growth during this period, appreciable increase in cost of actions that does these financial investments the most attractive to the population.

At the same time the share of individual shareholders in the cumulative share capital last decades was essentially reduced from 84 % in 1965 to present 49,2 % that is connected by strengthening of positions in the market large institutional investors.

There are some more criteria according to which the statistics of the USA classifies firms and the enterprises: with attraction or without wage labour attraction, on number occupied, on a sales volume. All of them have no direct relation to this or that form of a private property, except for the first criterion.

The firms which are not involving hired workers, as a rule, are concentrated in sphere small non-corporate business, i.e. represent the individual enterprises. Therefore their number almost precisely coincides with number of individual possession.

Besides consideration above the listed forms of the private companies traditionally analyzed by statistics, special interest is represented by classification of a private property by its prevailing accessory. This question is much less investigated. In this occasion there is no also a regular statistics. But the accessory of the capital of firms and the enterprises to those or other groups of proprietors gives a key to understanding of deep processes in evolution of all private property, advantages and lacks of its versions.

Now it is possible to allocate three large categories of firms in dependence because to whom they belong. It is necessary to carry the companies belonging to manufacturers to the first category. This category can be subdivided into three groups: the companies belonging in basic investors; the companies belonging to workers; industrial, first of all agricultural co-operatives.

The second large category is the companies belonging substantially to consumers. Various distributors, firms of suppliers here concern; the companies belonging to consumers of utility- the electric power, water and gas; housing co-operatives and other organisations of owners of habitation, and also clubs and other associations.

The profitless firms, some banks and the insurance companies where possession is, so to say, "mutual" can be carried to the third category - it is extremely bound. Apparently, in all cases listed above owners are those either other participants or counterparts of industrial activity of the companies, in other words, either internal, or their external clients.

The space in the property structure occupies production co-operatives. On available data, in 1991 in the country was 2400 agricultural co-operatives uniting 1840 thousand of farmers and occupied in basic marketing and the realisation of production of the participants. The sales volume of these co-operative societies made 56 bln. dollars They supervised 28 % of all agricultural market, including 81 % of the market of dairy products, 38 % of the market to grains 36 %- of cotton.

1.5 Tax system in the USA

The tax system in the USA is rather difficult and various. According to the American laws, the right to establish own taxes possesses not only the federal government, but also the governments of states and territories, and also local authorities in cities, counties, districts etc. Federal taxes are uniform and obligatory for all inhabitants of the USA while local systems of the taxation differ from each other for example, not all states and territories oblige the inhabitants to pay local taxes.

The American laws protect interests of tax bearers, giving to them the considerable rights. The following concerns fundamental laws of tax bearers:

The right to reception of the free information and the help by preparation of tax documents. Fiscal administration of the USA (Internal Revenue Service) lets out annually more than 100 free brochures containing the information on various questions, connected with payment of taxes. One of these brochures - Publication 910, Guide to Free Tax Services - contains the full catalogue of free services and publications IRS. Americans can order any questionnaires and publications of federal fiscal administration by phone. Receive the information on all questions connected with the taxes, they can by automated telephone system Tele-Tax or by local help phone IRS. In many libraries there is also a videocassette with instructions on filling of tax forms.

The right to preservation of the tax information in a secret. All employees of Fiscal administration processing your documents, are obliged not to disclose data containing in them. The American legislation grants the right to the Department of Justice in cases strictly discussed in the law to request your tax information in IRS.

The right to protection of the interests. Employees of Fiscal administration are obliged to observe the interests and accurately to explain all rights. If they do not do it, one can submit the protest. Americans also have the right to make a tape recording of the conversation, but for this purpose it is necessary to submit the notice in writing form not later than 10 days before meeting.

The right to the appeal of decisions IRS. If one consider, that the size of the taxes is defined incorrectly, one can submit the protest or to Appeals Office fiscal administration, or in one of following courts: U.S.Tax Court, U.S. Claims Court, U.S. District Court. All these courts completely are not dependent from IRS. If the court decides the correctness you will be compensated not only taxes unfairly levied from you, but also a legal cost.

Usually tax declarations are sent in IRS by mail, but for faster reception of results (that is desirable, for example, if from your salary have kept more taxes, than followed, and to you should return the certain sum) one can take advantage of electronic processing of documents (electronic filing). The information is thus transferred on special telephone lines, and processing process occupies, as a rule, no more than three weeks. For electronic processing the additional payment is raised, but it can pay off in case of faster refund which can be automatically translated on the bank account.

It is necessary to copy of the tax declarations to store three years if people worked on hiring, or seven years if they received incomes of own business.

If the business was in sole proprietorship or partnership business itself as independent unit, is not subject to the taxation, and taxes pays only its owner (owners).

The sum of all incomes makes gross income. Taxes, however, are paid not from the aggregate profit, and with so-called "the taxable income". To count up taxable income, it is necessary to define at first "adjusted gross income" which turns out by subtraction from gross income, the means deducted by people into the individual pension account (Individual Retirement Account), parts of the taxes paid by you on incomes of work on itself (selfemployment), the paid alimony etc. Then from adjusted gross income the sums which are not subject to the taxation - "deductions" are taken away. People can take advantage or the standard sum, not taxable (standard deduction), or to present the full list of all sums which are subject to a deduction from taxes (itemised deductions).

The size of the standard sum, not taxable, does not depend on the income. In each tax form the table is resulted, allowing to define the size standard deduction. For the incomes received in 1990, a standard deduction made, for example, for lonely - 3,250 dollars, for a married couple making the joint report, - 5,450 dollars, for the spouses making separate reports - 2,725 dollars, for the head of the family etc. the Size standard deduction is a little bit more than 4,750 dollars for elderly (65 years and are more senior) and blind people.

If accumulated within a year sum, which is subject to a deduction from taxes (expenses on medicine, taxes to the real estate, donations in welfare funds etc.), are exceeded by the size standard deduction one can make the underground group of all these expenses (itemised deductions). Then from adjusted gross income one should subtract this sum.

If the lawful deductions are equal or more adjusted gross income the income subject to the taxation (taxable income) is equal to zero, and one should not pay any taxes. If the difference between adjusted gross income and deductions is more than zero this difference also makes taxable income, i.e. the sum from which one should pay the tax. The tax size is defined under the tables applied on each tax form.

If from the incomes have subtracted less, than it necessary to pay, together with the tax forms you should send the check for the missing sum. If from it has been subtracted more it is necessary to send corresponding indemnification (refund). In some cases (if the income does not exceed certain level and living together with children ) indemnification can be even more sum withheld within year from the salary.

1.6 Foreign trade

Besides agricultural products the most part of the American export occupies cars, automobile products, planes and химикалии. Leading American import - mineral oil, the foodstuffs and drinks, iron and steel products. The USA - the biggest in the world the importer and the exporter. Despite its scale internal manufacture, the economy of America strongly depends on foreign import. Until recently the USA exported more goods than imported. However in an existing situation - decreasing competitiveness of the American goods in the world market first of all because of poor quality which has been designated by trading deficiency which name in the economic theory negative balance of foreign trade. Foreign manufacturers sell now approximately 50 % in the country more than Americans export abroad.

It is necessary to underline especially, that the condition of the American economy is substantially reflected in the international prices for oil. If they below the norm, the American economy prospers, in another case starts to decrease. This phenomenon can is the reason of an economic crisis of the USA now. For this reason America has for an object to operate an oil field in Iraq that will give the chance to it to supervise this market one. Actually predicted war in Iraq - only one aspect of this policy aimed to the maintenance of its specific role in the international economy. In this case economic interests of the USA coincide with its political.

1.7 Some facts about the USA economy

Taxes from incomes of corporations of the USA have decreased on 55 % (to 138 billion) for the year which has ended on September, 30th, 2009.

· In California now there are 8 districts, where a rate of unemployment above 20 %.

· In February on each vacancy 5,5 Americans applied.

· It is said in the «Pew Research Center» research , that approximately 37 % of all Americans which are between 18 and 29 are not employed or employed partially.

· More than 40 % employed in the USA now are low-paid.

· Value of the commercial property has fallen approximately on 40 % since 2007, and now 18 percent of office space in the USA remain vacant.

· the State of New York has detained the payment of invoices in total on 2,5 billion dollars

· From half-dozen lacking cash of states declared, that detain return of taxes.

· As says EconomicPolicyJournal.com, 32 states have already settled funds on payment of unemployment benefits, and, thus, the federal government supports these states financially that those could pay benefits.

· Given by the government of the USA of a privilege (including social security, social insurance on unemployment, food coupons and other programs) have increased to record-breaking high level within first three months 2010.

· Approximately 40 % of all retail expenditure occur now thanking 20 % American farms, which have highest income.

· As economist Thomas Piketti speaks, two thirds of increase in incomes between 2002 and 2007 years have been left to one percent of the richest Americans.



2 The Industry

2.1 Productive sector

The industry of the USA takes a special place in the international division of labour. The variety of industries, a wealth wih various raw materials and qualified personnel, advanced research base has allowed the American industry to provide mass production of a various batch production and release of unique devices and the equipment both for internal, and for the world market.

The greatest growth is characteristic for the branches defining and closely connected with a military production. For last decades in new branches were allocated:

· The rocket industry,

· Manufacture of space technics,

· The semi-conductor industry,

· Manufacture of the computer,

· Scientific instrument making,

· Manufacture of machine tools with programmed control,

· The laser, vacuum, oxygen industry,

· Manufacture of the equipment for prevention of pollution and clearing of environment,

· The industry of fuel elements and others.

On the average in a manufacturing industry each 4 years it is updated not less than 20 % of let out production.

The USA take a visible place on extraction of some the major minerals - coal, oil, natural gas, iron ore, copper, lead, zinc, phosphorites.

But there was not enough own resources, and after 2 world wars of the USA from the exporter have turned to the largest importer of oil, iron ore, nonferrous metals, bauxites, manganous ore, antimony, diamonds, cobalt etc.

In location of the mining industry on areas USA there are the appreciable shifts connected with change of structure of branch, mainly growth of a share of extracted power resources. The South share- the basic area of an oil recovery, coal and gas increases in cost of production of the mining industry. The North and West share where basically ores colour and ferrous metals ores are extracted accordingly decreases.

The mining industry of the USA is closely connected with fuel and energy a complex. In the USA it is developed about 3 bln. in kw-h. the electric power. The power balance structure in comparison with the pre-war period has undergone changes. Oil and gas now prevails. There was a difference between structure of stocks (oil and gas of 7 %, coal of 93 %) and consumption structure (oil and gas approximately 75 %, coal - 25 %) fuel resources of the USA.

The greatest value for a power economy of the country has oil industry (appendix D). The leading role in an oil recovery is played by southwest states - Texas, Louisiana, Oklahoma, New Mexicos delivering about 70 % of oil extracted in the country. Within this area oil is extracted and in a shelf zone of Gulf of Mexico. Large oil fields are available at Pacific coast in the State of California, in mountain state of Wyoming. Last years there begun wide development of deposits on Alaska.

The USA possesses a powerful petroleum-refining industry. The largest oil refining factories of firms: «Exon corporation» Louisiana and Texas, «Texaco incorporaid» in Texas, «Amoco oil» also in Texas are located in states. Placing of oil refining of the USA considerably differs from an oil recovery. The considerable part of capacities takes places not only in extraction areas, but also in consumption areas, that is in the major industrial knots of the Northeast, in the port centers, on the lines of the main oil pipelines.

The central areas of concentration of oil refining factories are:

· Coast of Gulf of Mexico (a strip in width of 200-300 km on the territory of states Texas, Louisiana, Mississipi),

· Southern and the Central California,

· A strip of the Atlantic coast from New York to Baltimore (mainly a mouth of the rivers Hudsons and Delaware).

Areas of deposits of natural gas basically coincide with petroliferous pools. On a share of 5 states - Texas, Louisiana, Oklahoma, New Mexico and Kansas is necessary over 90 % of extraction.

The considerable part of oil, gas and mineral oil arrives from southwest states of the country in areas of the industrial North of the USA. Total length main petroleum about 300 thousand km, gas pipelines - more than 350 thousand km. Distributive pipelines form especially dense inner network at coast of Gulf of Mexico, connecting gas - and petrocrafts with oil refining and gas & petrol factories, petrochemical factories and ports.

On a coal mining of the USA occupies 1 place in the world (1 billion t. per year). As a result of an energy crisis and sharp increase of the prices for oil, both on external, and internal market in the USA big attention began to be given to working out of profitable ways of production of liquid fuel from coal. It is typical, that the active role in these researches is played by leading oil monopolies of the country.

The electric power industry is among most quickly developing branches of economy of the USA. The largest state electricity supply system of the USA is the system hydraulic and thermal power plants in the pool of the rivers Tennessee and Cumberland, operated river Tennessee Administration. But about 80 % of all electric power are developed in the USA in the private power plants, including 4 % -power plants of the industrial enterprises.

The hydroelectric power station's share in the electric power manufacture steadily decreases, though hydropower constructions use less than 35 % of potential resources of all rivers. About 60 % of all electric power developed on hydroelectric power stations in the West states including 48 % - on Pacific states. Large hydroelectric power plants are constructed in the USA also on Niagara, Tennessee and in the river Missouri headwaters. Unlike thermal power plant all largest hydroelectric power plants of the USA belong to the state or local authorities. Their number concern: Grand Coulee on the river Colombia, John-Day on the same river, Robert-Mozes on the river Niagara and others. Projects of expansion of capacities of the largest hydroelectric power plants of the Pacific Northwest are developed.

Over 80 % of the electric power in the USA it is made at thermal plants. The share of the thermal power plant, using as a fuel coal, gives 54 % of capacities, natural gas - 27 %, black oil - 19 %. In connection with crisis in the markets of liquid fuel a number of plants using black oil are changed last years for coal.In the location of electric power industry of the USA the tendency of gradual strengthening of value of southern states, in particular South Atlantic, and the Southwest centre is distinctly observed.

From the middle of 60th years of 20 centuries in the USA development of nuclear power was sharply accelerated. The basic areas of concentration of the atomic power plants - the Northeast centre and the South Atlantic states. But now the atomic power plants locate on country territory already in regular more intervals and basically tend to large industrially-city agglomerations.

The important feature of location of a manufacturing industry of the USA - practically universal strengthening of rates of its suburbanization, that is the shift of industrial production from the central parts of agglomerations in their residential suburbs. Here the factories demanding the big floor spaces and the developed infrastructure (automobile, aviation, cement, chemical, oil refining, heavy mechanical engineering etc.), as a rule, take places.. To the factors which are "pushing out" the industry in suburbs, concern: higher price for the ground areas in the central parts of city agglomerations, necessity of creation of extensive platforms for parking of cars (the area of such parking near new factories come nearer in the sizes to the area of the enterprise), action of laws on preservation of the environment in cities, «crisis of the big cities» where the central parts are overpopulated by rather poor population.

The machine engineering industry enterprises locates on country territory extremely non-uniformly - more than 60 % of them are located in the industrial centers of the North and at Pacific coast, and the share of these areas in cost of the production makes 80 %. The major centers of mechanical engineering and metal working of the USA: Los Angeles, Chicago, Detroit, New York, Philadelphia, Cleveland, Boston, Saint Louis, Milwaukee, Dallas - Fort Worth on which share it is necessary over 40 % conditionally-net production mechanical engineering and metal working.

The largest branch transport mechanical engineering of the USA - motor industry. Cars - the basic vehicle for one million Americans, and cargo automobile transportations take the important place in transport to country system. In manufacture of cars, their sale and commercial operation it is occupied about 20 million persons, that is every sixth working American direct or indirect is connected with motor industry. Release of cars is in the USA at high level; however this branch is extremely subjected to tactical fluctuations and recessions which directly affect both motor industry, and allied industries: metallurgical, chemical and a rubber industry, machine-tool construction etc., causing lack of capacities and unemployment. In the American market the competition from foreign cars delivered mainly by Japan and Germany grows. The successful competition of these cars was promoted by an energy crisis and sharp increase of the prices for fuel.

Motor industry - one of the most monopolised branches of mechanical engineering of the USA. The share of "the big three» -of the concerns «General motors», "Ford", and "Crysler" - is about 97 % of national manufacture of automobile and 85 % of lorries. Outside of the USA these monopolies supervise almost 25 % of world production of cars.

For motor industry placing considerable concentration of manufacture in Lake-districts - 60 % of conditionally-net production branch is typical. Only to one State of Michigan belong over 30 % of production of the motor industry which basic part is developed in Detroit and its vicinities, and also in nearby cities Flint, Lansing and Ann Arbor. So considerable concentration of motor industry in the south of Michigan is explained by the wealth of area with qualified personnel, the metallurgical, metal cutting and machine-tool constructing enterprises, a favourable geographical position in centre Lake-districts, a capacious commodity market, and also historical traditions. However the tendency which has outlined still to 2 world war to expanding car assembly factories and to their approach to peripheral commodity markets amplifies.

The aviation industry of the country - which has grown in days of 2 world wars, with development of military rocket production and expansion of space programs to the USA has turned in essence to new branch of the industry. Aviarocket monopolies "Makdonnel-Duglas", "Boeing", «Rockwell», «Hughes aircraft», for many years take the first places in the sizes of the governmental military orders and represent a basis of a military-industrial complex of the USA. The appreciable place in the country aircraft industries occupies release of the civil aviation vehicles, including liners, easy planes, the helicopters which considerable part is exported.

Leading area this industry - is the Pacific coast with the main centres Los Angeles, Seattle, San Diego, San Jose. Over 60 % of all manufacture of aviation engines, the devices, completing knots and details it is concentrated to the Industrial East of the USA (the basic centres - Cincinnati, Indianapolis, Hartford, New York, Boston, Buffalow). In the West Phoenix, Los Angeles concern number of the large centres engine-building in the aerospace industry Sacramento.

The ship-building industry of the country undergoes the period of long stagnation. Building of the military ships both on private shipyards, and on shipyards of Naval Forces of the country has the considerable sizes only. The basic types of the floated military ships - aircraft carriers, nuclear submarines, patrol ships. The largest shipyards of the private companies at the Atlantic coast the countries are located in Newport-Njuse (state of Virginia, firm «Newport-news ship-building and dry dock») and Gronte (the State of Connecticut, the firm «General dynamics») - the leading centre of designing and building of nuclear submarines; large shipyards are available also in Boston, Baltimore, Philadelphia, New York. At coast of Gulf of Mexico (Mississipi), New Orleans and Mobile (Alabama); at the Pacific coast large shipyards are in San Francisco, Seattle, San Diego, Los Angeles.

One of the basic branches of a machine engineering industry of the USA - the general mechanical engineering - represents in essence the whole conglomerate of various branches. The American statistics includes the machine-tool constructing and tool industry, agricultural mechanical engineering, manufacture in the general mechanical engineering and hoisting-and-transport mechanisms, the process equipment for polygraphic, food, light and other industries, manufacture of turbines and internal combustion engines, the trading and municipal equipment, office equipment, the various common industrial equipment (including bearings, pumps and compressors, power transmissions, industrial furnaces etc.) . The general mechanical engineering - the most traditional branch of a machine engineering industry of the country; the general drawing of its placing throughout many decades is conservative also. On a share of industrial states of the North it is necessary about 80 % of all occupied in branch; including over 40 % Ohio and Michigan concentrates in Lake - districts, mainly in Illinois.

Most quickly growing branch of mechanical engineering of the USA - manufacture of radio-electronic equipment and a communication facility. According to the shipments of the electronic equipment the USA 3-4 times advance the basic competitors - Japan and Germany. The share of the American firms is 40 % of all manufacture of the computers in the developed countries. Prevalence of the USA in release of the computers industrial and military-oriented is especially sufficient; at the same time in manufacture of household electronics the American companies do not maintain a competition to Japanese and other South Asian countries, in some cases even in home market.

The radio-electronic industry takes places on country territory as a whole a little in regular more intervals, than other large branches mechanical engineering. Chicago, New York, Boston concern the major centres of the radio-electronic industry of the country The largest enterprise for release of the computers the firm “International business machines» is located in Pockipsy (New York), the telephone and cable equipment of firm «Western the electrician» - in Chicago.

The chemical industry is along with mechanical engineering is one of leading industries of the USA. On the rates of growth the chemical industry considerably advances a manufacturing industry as a whole, conceding only to radio electronics. Manufacture of chemical production in the USA doubles for each 10-12 years. Technical progress promoted sharp increase in demand at synthetic chemicals with in advance set properties, first of all on polymeric materials (chemical fibres, plastic, synthetic pitches) which mostly are synthesised on the basis of petrochemical raw materials. Value of some technical gases (oxygen, hydrogen, nitrogen and its connections, helium), processes used for an intensification in metallurgy and chemical technology, in the form of components rocket fuel, for space research etc. has sharply amplified for last years

The South enterprises make over half of all technical chemicals developed in the country (that is the chemical semiproducts arriving for the further processing within the same branch or used in other industries, in building and on transport), 60 % of polymeric materials, over 50 % of fertilizers and pesticides etc., that is rather cheap and large-tonnage products.

The north where the overwhelming part of the population of the USA is concentrated and the enterprises of a manufacturing industry of the country, remains the basic area of manufacture and consumption of chemicals in the USA. However about 60 % made in the north of chemical production (in cost expression) make ready to the use low-tonnage and expensive chemicals: medicines, soap and washing-up liquids, perfumery-cosmetic products, dyes. The most part of specified production is consumed within area, however export expensive and low-tonnage chemicals in southern and the West defines North specialisation in a territorial division of labour in the chemical industry of the country. Inorganic in the north inorganic and organic technical chemicals do not satisfy local demand, and their considerable part is imported from southern states. The major centres of the chemical industry of area are New York, Chicago, Philadelphia, Cincinnati, Saint Louis, Indianapolis. About 20 % of all tyres it is developed in the USA in the largest centre of a rubber industry - the city of Akron (Ohio).

The nuclear industry having huge military value is closely connected with the chemical industry. In a complex of the enterprises of this branch the major place is occupied with factories on manufacture nuclear combustible (uranium 235, трития, plutonium), constructed during 2 world wars by the government of the USA, and then transferred in operation to private concerns. The centres of manufacture of split materials are Oak Ridge (Tennessee), Paducah (Kentucky), Savanna (South Carolina), Portsmouth (Ohio), Hanford (Washington).

The important place in a national economy is occupied with light industry branches among which are allocated textile both especially sewing and knitted though rates of growth of these branches are low also their relative role in industrial production decreases. In the textile industry the structure of release of fabrics after 2 world war has considerably changed - the share of the fabrics developed on the basis of artificial and synthetic fibres, and also the combined fabrics has grown, having made almost half of all production of branch. At the same time manufacture of cotton fabrics was reduced to a half , and manufacture woollen - almost in 8 times. It is necessary to underline, that manufacture of synthetic and artificial fibres is carried out at the specialised factories included by the American statistics in structure of the chemical industry, and release of fabrics on their basis is actually textile manufacture.