Economics and business has been instrumental in the classification of economies as good average or bad. Issues of inflation and economic recession are also of concern to an economist. It is usually important to understand economic policies in order to measure the potential economic growth that can be recorded by a country.
An economic analysis of America today will give a remarkable difference than that done during the ancient times. It is clear to note that the change in times has also translated into economic and technological changes. Ancient animal drawn carts have been replaced with aero planes and electric rains. In fact, a better way has been observed. It is important to analyze these improvements that have made life better in America. Economists usually categorize economics into two major fields; microeconomics and macroeconomics (Warren 251). The latter is usually concerned with small scale or individual contribution to economic growth. Market forces of demand and supply are usually considered. Production, price control and competition are key areas of concern in America, capital investment has been encouraged. This investment has seen many factories, hospitals and schools being built. Capital investments are capital intensive as opposed to being labor intensive. These investments require less labor. The skills, talents and energy that would otherwise be wasted are redirected to other business ventures.
The agrarian revolution was characteristic in the ancient times. Some years later, industrial and technological revolution is what America enjoys today. This has made most people concentrate on what they can do best rather than remaining in the fields to plough. Doctors, lawyers, teachers and engineers are reminiscent today due to the needs of specialization. Education and training has been on the increase to empower workers and employees through formal schooling and on-job training. This measure is important in the diversification of goods and services. The quality is also improved as a result. Innovation and technology have played a crucial role in increasing the efficiency of production as well as reduce the cost of production.
High quality goods have also improved the quality of goods and services. For example a computer in the early 19th century was the size of a bus. Technological advancements have made it possible to have a cell-phone which is a computer in its own regard. Trade has immensely contributed to higher productivity due to the opening up of new markets and competition. The immense trade patterns as a result of specialization have made more goods and services to be introduced into the market. A diversification of customer choices has been observed.
Macroeconomics on the other hand seeks to address issues of Gross National Income (GNI), Gross Domestic Product (GDP), Income Per Capita and real average income (Warren 255). Large scale economic issues such as government funding, taxation policies and budget policies are usually of concern. The major macroeconomic improvement has been the reorganization of resources and workers to more profitable and productive business ventures. Workers have been deployed all over America on basis of their skills and expertise in order to increase the GDP and also increase the real average income. The reorganization has also been associated with more leisure time. Some unmeasured variables that also accrue are improved working conditions, diversified variety, improved safety and security standards and clean environment. Trade also is regarded on a large scale especially when foreign trade is concerned. Trade is behind all economic developments especially through exports. The signing up of trade agreements between America and other states have been the driving force to intensified trade (Warren 259). Lack of international trade restrictions and the creation of trade blocs have made the US enjoy the fact of being the most developed.
Industrial capitalism in the 19th century is considered the genesis of resource and customer competition. Whereas completion can be considered as a threat, the prior knowledge of market dynamics has made competitors survive on as they improve on the quality and customer care. Some recent statistics show that indeed the living standards in America have improved. The per capita output for example has recorded a 25-fold increase since 1776. Doubling of the real average income over the last two generations is also commendable. Increase of leisure time is a direct result of reduced working hours. It is argued that the year1830 recorded the highest number of working hours (76 hours). The hours gradually reduced to 60 in 1890, 39 in 1950 and 34 to date. The ample leisure time has created more room for further innovation and recreation.
Most people are supportive of the fact that both microeconomics and macroeconomics depend on each other for sustainable productivity. It is therefore commendable to ensure that market forces of demand and supply are checked and reviewed often due to the changes in production levels. The shifts in demand and supply trends are all as a result of rapid economic growth that follows the great economic crisis experienced a year ago. Life has become better courtesy of economic revolution and all stakeholders including consumers, wholesalers and retailers have immensely benefitted from such mutual relations. Economic prosperity in the United States has been due to several years of unyielding determination to do things in a better way. With the continued advancement in information, communication and technology coupled with the unstoppable globalization trend, economic progress in America is set to grow further if the people decide to do things in a better way.