Up to the 1880s the income of most Americans came from farming. But the 1890 census showed that factory production had overtaken  farming: by the 1913 over ⅓ of the world’s industrial production came from the US and by the 1945 America was in number one position.

The American economy [E1] [E2] [ES1] [ES2] [F1] [I1] is described as a free enterprise system, which allows private business the freedom to operate with a  minimum of government intervention. The United States today is a leading economic power, with a high standard of living and enormous productivity in industry and agriculture.

After the North American Free Trade Agreement (NAFTA) [E1] [ES1] [F1] [I1] came into effect in 1994, foreign trade between members of the agreement – USA, Canada and Mexico – increased a lot.
 

Foreign Trade [E1]

America’s export trade are: machinery, automotive products, aircraft and chemicals.

America’s imports are: petroleum products, foods and beverages, machinery, iron and steel products.
 

American major economic sectors: 

• Traditional industries
• High technology
• Service industries
• Agriculture
• Energy industries

 
American economy by geographic area  [E1]

The New England States

Since the landscape is mainly mountainous and then not suitable for agriculture, manufacturing and commerce are the main economic sectors.

Maine is the largest pulpwood producer, because of its forests. On the coast there are great fishing centres. Maine is the leader  in the production of tinned sardines. Tourism play an important role in all states, particularly in Maine which boasts 4.800 km of beautiful coastline. Among the industrial activities there is manufacturing of machinery, leather goods, silverware, firearms, electronics and woollen textiles.

 

The Middle Atlantic States

The climate and soil of this region allows the cultivation of a wide range of crops. Half of Delaware and a third of Pennsylvania are farmland: New York and Pennsylvania are among the leading milk-producing states.

This region is also called the Manufacturing Belt, because of many types of goods are made here. Pittsburgh is the leading centre for steel and provides 20% of  the national steel production. The ports of New York, Philadelphia and Baltimore are very important for maritime cargo.
 

The Southern States

Thanks to the warm climate and the closeness to the Mississippi river, the 12 southern states are very important for the cultivation of cotton, tobacco and cereals. The states along the Gulf of Mexico are called the Cotton Belt since they produce 18% of the cotton world’s production. Kentucky, North Carolina, Virginia and Tennessee, are known as the Tobacco Belt (18.8% of tobacco).

Florida is important for the production of fruit and vegetables and for tourism. 

This area is important for the production of textiles, processed food, chemicals and electronic components. Fishing is a resource for both the states on the Atlantic coast and the coast of the Gulf of Mexico.
 

The Midwestern States

The soil here is very fertile because of the Mississippi and its tributaries. Here grows corn: Indiana, Illinois, Iowa are known as the Corn Belt. Corn is mainly used to feed cattle and pigs, so this is also called the Meat Belt. Minnesota, Michigan and Wisconsin are called the Dairy Belt because of their economy based on dairy produce.

The Great Plains States

The economy of these states is based on cattle raising, agriculture (irrigation and full exploitation of the Missouri and its tributaries has made possible the huge production of wheat, cereals, sunflowers and cotton) and mining (gold, silver and oil in Oklahoma and Texas). Houston is the leading centre for chemicals.

The Pacific Coast States

California is important for the production of oranges, lemons, grapefruit and grapes. Its resources also include timber, oil and gold. It is also important for tourism along its beautiful southern coast.

Los Angeles is also famous as the leading entertainment industry in the country (Hollywood) and also produces aircraft, spacecraft and electronic equipment.

Los Angeles and San Francisco  are the main industrial areas, where metal manufacturers, chemical, shipbuilding, printing and publishing are carried out.

Washington and Oregon produce timber stocks, white fishing and paper products (Seattle).

The Rocky Mountains States

The main resources of these states are: mining (uranium, gold, silver, copper, lead and zinc). Nevada provides 26% of the U.S: output of gold; cattle and sheep rearing in Montana, Wyoming and New Mexico; agriculture: Idaho is the nation leader for the production of potatoes; tourism: beautiful landscapes and several national parks such as Grand Canyon and Yellowstone, ski resorts (Vail and Aspen) are in Colorado. Important is the gambling industry in Las Vegas and Reno (Nevada)

Alaska and Hawaii

Alaska produces 25% of U.S. oil production. Its other resources are timber, furs, salmon fishing, gold.

Hawaii economy is based on tourism and agriculture and fishing: pineapple, sugar cane, coffee.