Structural Changes in U.S. Economy: 2010 – 2020

Abstract

This article covers the major trends of structural changes in US economy during 2010–2020. Statistical analysis shows that mining industries and agriculture have very insignificant effects on US gross domestic product. Meanwhile liquid natural gas (LNG) and agricultural products are important articles of American export. Traditional manufacturing corporations are also decreasing their effects on American economy. Modern services are considered to be the most prospective for economic development and they add the largest value to US gross domestic product. Financial services, insurance and real estate trade demonstrate very high productivity of labor. Informational, professional and business services are also important for U.S. economy. And these branches have outstanding export potential. In the Section 2 the major problems of labor market are being analyzed. The author proves that majority of American employees is being engaged in service industries. Growing unemployment is considered to be the most serious problem of labor market. In the Section 3 structural changes in the sector of government finance are being researched. The structure of federal budget was stable enough during the period of 2010–2020. Military expenses share of budget expenses is decreasing, but social and health care expenditures are very high. The current operating role of the Federal Reserve in budget deficit financing is being analyzed. The author proves that FRS and foreign sponsors of American debt give up their place to American private investors. In the long run this situation may create serious problems for federal debt financing. As a result, U.S. dollar position as an international reserve currency may be weakened. Dollar share in international trade and financial markets may also decrease.