About USA

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $37,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy considerably greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to entry in their rivals' home markets than the barriers to entry of foreign firms in US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The years 1994-2000 witnessed solid increases in real output, low inflation rates, and a drop in unemployment to below 5%. The year 2001 saw the end of boom psychology and performance, with output increasing only 0.3% and unemployment and business failures rising substantially. The response to the terrorist attacks of 11 September 2001 showed the remarkable resilience of the economy. Moderate recovery took place in 2002 with the GDP growth rate rising to 2.4%. A major short-term problem in first half 2002 was a sharp decline in the stock market, fueled in part by the exposure of dubious accounting practices in some major corporations. The war in March/April 2003 between a US-led coalition and Iraq shifted resources to the military. In 2003, growth in output and productivity and the recovery of the stock market to above 10,000 for the Dow Jones Industrial Average were promising signs. Unemployment stayed at the 6% level, however, and began to decline only at the end of the year. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups.

Capital :
Washington, DC

Administrative divisions:
50 states and 1 district*; Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia*, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

Dependent areas:
American Samoa, Baker Island, Guam, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Islands, Navassa Island, Northern Mariana Islands, Palmyra Atoll, Puerto Rico, Virgin Islands, Wake Island
note: from 18 July 1947 until 1 October 1994, the US administered the Trust Territory of the Pacific Islands. It entered into a political relationship with all four political units: the Northern Mariana Islands is a commonwealth in political union with the US (effective 3 November 1986); Palau concluded a Compact of Free Association with the US (effective 1 October 1994); the Federated States of Micronesia signed a Compact of Free Association with the US (effective 3 November 1986); the Republic of the Marshall Islands signed a Compact of Free Association with the US (effective 21 October 1986)

Independence:
4 July 1776 (from Great Britain)

National holiday:
Independence Day, 4 July (1776)

Constitution:
17 September 1787, effective 4 March 1789

Legal system:
federal court system based on English common law; each state has its own unique legal system, of which all but one (Louisiana's) is based on English common law; judicial review of legislative acts; accepts compulsory ICJ jurisdiction with reservations

chief of state: President George W. BUSH (since 20 January 2001); note - the president is both the chief of state and head of government
head of government: President George W. BUSH (since 20 January 2001) ; note - the president is both the chief of state and head of government
cabinet: Cabinet appointed by the president with Senate approval
elections: president and vice president elected on the same ticket by a college of representatives who are elected directly from each state; president and vice president serve four-year terms; election last held 2 November 2004 (next to be held November 2008)
election results: George W. BUSH reelected president; percent of popular vote - George W. BUSH (Republican Party) 50.9%, John KERRY (Democratic Party) 48.1%, other 1.0%

Judicial branch:
Supreme Court (its nine justices are appointed for life on condition of good behavior by the president with confirmation by the Senate); United States Courts of Appeal; United States District Courts; State and County Courts
Political parties and leaders:
Democratic Party [Terence McAULIFFE]; Green Party [leader NA]; Libertarian Party [Steve DASBACH]; Republican Party [Edward GILLESPIE]