hey
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, although 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 witnessed the end of the boom psychology and performance,
with output increasing only 0.3% and unemployment and business failures
rising substantially. The response to the terrorist attacks of September
11 showed the remarkable resilience of the economy. Moderate recovery is
expected in 2002, with the GDP growth rate rising to 2.5% or more. 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. Long-term problems include inadequate investment
in economic infrastructure, rapidly rising medical and pension costs of
an aging population, sizable trade deficits, and stagnation of family
income in the lower economic groups.

GDP: purchasing power parity - $10.082 trillion (2001 est.)

GDP - real growth rate: 0.3% (2001 est.)

GDP - per capita: purchasing power parity - $36,300 (2001 est.)

GDP - composition by sector: agriculture: 2% industry: 18% services: 80%
(2001 est.)

Population below poverty line: 12.7% (2001 est.)

Household income or consumption by percentage share: lowest 10%: 1.8%
highest 10%: 30.5% (1997)

Distribution of family income - Gini index: 40.8 (1997)

Inflation rate (consumer prices): 2.8% (2001)

Labor force: 141.8 million (includes unemployed) (2001)

Labor force - by occupation: managerial and professional 31%, technical,
sales and administrative support 28.9%, services 13.6%, manufacturing,
mining, transportation, and crafts 24.1%, farming, forestry, and fishing
2.4% (2001) note: Unemployment rate: 5% (2