rs (top and bottom) alternating with rows
of five stars; the 50 stars represent the 50 states, the 13 stripes
represent the 13 original colonies; known as Old Glory; the design
and colors have been the basis for a number of other flags,
including Chile, Liberia, Malaysia, and Puerto Rico

Economy United States

Economy - overview:
The US has the largest and most technologically powerful economy in
the world, with a per capita GDP of $40,100. 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 response to the terrorist attacks of 11
September 2001 showed the remarkable resilience of the economy. The
war in March/April 2003 between a US-led coalition and Iraq, and the
subsequent occupation of Iraq, required major shifts in national
resources to the military. The rise in GDP in 2004 was undergirded
by substantial gains in labor productivity. The economy suffered
from a sharp increase in energy prices in the second half of 2004.
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.

GDP (purchasing power parity):
$11.75 trillion (2004 est.)

GDP - real growth rate:
4.4% (2004