Question

Why is American economy the most successful in the world? Please include references. Thank you

Answer 1

"American Successful economy is never by mere chance;

it is the result of forces working together by the citizens of the country"

Economy means is a system spread over a particular area that reveals the nature and the level of economic activities in that area. It shows how people of the concerned area earn their living.

In other words Economy is the careful management of available resources.

The reasons of American economy is considered the most successful economy in the world are as follows :

1. Proper Utilization of Natural Resources : have rich supply of minerals, energy, coal, copper, lead, iron, natural gas, timber, bauxite and uranium may boost economic growth as this shifts or increases the country's Production Possibility Curve.

2. Physical Capital or Infrastructure : As more and more capital invested in the production process implies the more job opportunities. If people of country earn more this directly improves the standard of living of people of country. In America abundant access to credit & capital.

3. Population or Labor : As America is the developed country. Stable population growth gives more chances to the people to avail the efficient use of resources.

4. Human Capital : the skills, knowledge & experience possessed by an individual or population viewed in terms of their value or cost to an organisation or country. America use the their human capital effectively. People mind are more innovative and daring to take risk and bold decisions for progress of the economic development.

5. Upgrade Technology : High intensive technique used by America also help or increase the economic growth of the Country also shift the Production Possibility Curve.

6. Law : Strong and effective law making bodies give more autonomy for ease business doing.

American Successful Economy is the situation where decision making branch of economics bridging the gap between abstract theory and managerial practice.

The American Economy remains the largest in the world in the terms of nominal GDP. The dollar 18.5 trillion U.S. economy is approximately 24.5% of the gross world product

As per the recent survey American economy is the world highest GDP 2018 i.e. (20,412.87 nominal billion of Dollar)

Conclusion from my viewpoint is

America use the resource efficiently or effectively that leads to the better opportunities to the country development as maximization of profit to the firms, maximization of satisfaction to the consumer, maximization of the social welfare of the country as a whole.

As per Rodrigo Rato " So the American economy needs the world, and the world needs the American economy."