Why Is America So Rich

Lots of countries are rich, but America is unique. For one thing, it's by far the richest country in the world, and has been for some time.

Oh America, home of the free, land of the rich! With a GDP of $20 trillion and net worth at $138 trillion on a per capita basis, how did this country amass so much wealth to become the world's largest economies?

America leads the world in productivity levels, which is partly due to its high-quality workforce. Why might this be? Perhaps it's because Americans work harder, have a wider military budget, or pay less tax? Perhaps the reason for this is that America's exports exceed its imports and it has a sizeable manufacturing sector. Some people say that democracy is the reason, while others say it's because they have the second largest GDP.

There are so many options, and even more right answers, but in this article we go over some of the unique aspects that make America great.

Reading an article about the US economy can get boring at times. You are free to switch over to the fun video version of this article: https://youtu.be/XvTZDTRfa28

1 Natural Resources

The USA is rich in natural resources, which makes us rank 7th in the world. As of 2015, this was valued at $45 trillion

One of the greatest resources the US has is its oil and gas reserves, which make it energy independent. On top of this advantage of not relying on anyone else's expensive fuel, the reason oil giants are happy

Other countries nationalize natural resources, but America has the right to privately own natural resources and minerals. Technological advancements have allowed society access to the vast amounts of natural resources hidden just below Earth's surface. Modern fracking technology has helped accelerate this process exponentially.

We won’t discuss the politics of ancestral-land rights or the environmental impact, there is an entire topic on that alone. This video is just highlighting some ways America got so rich

2 War Is Big Business

One of the oldest businesses of all time is war. Ever since cavemen started opening up skull-clobbering chains, people have been making a living by trading in war. As of 2015, the United States Department of Defense was the largest employer in the world with 3.2 million employees. This is great for the country, as it means more people are employed and have a reason to pay taxes from their income and spend if they choose.

With all this gear, uniforms, equipment, housing, transport, catering and communication, it creates a whole new set of business opportunities.

In addition to US forces, the US government, early on, got involved with war loans. They realised that it wasn't just going to be "US Forces" fighting in the first World War so they tried to help European states by offering loans. As European economies weakened, American banks & companies made a lot of money from lending money.

The Second World War gave the U.S another chance and because of America’s distance from the war at Europe, they kept their industry and infrastructure safe.

3.Unhindered Labour Markets

America's diverse labour market helps people find the perfect job. There's plenty of opportunity and regulation is minimal, so you won't have any trouble finding the right situation for you.

They also don’t require the staff which is usually contracted and regulated by union contracts. This mean your team can grow for the foreseeable future without problems. It also provide a level of convenience for employers, meaning you might have a more local workforce too.

Flexibility When you decide which company to hire, your staff members can go where they want to work. You might not have been able to find a candidate who wanted your location and hours before you started hiring. With a remote team, you also don’t have to worry about the hours their children need or how much time they can spend on after-hours work.

4.A System That Encourages Entrepreneurs

America is known for being a land of opportunity. Like with any opportunity, you'll need an idea. Once you have an idea, it's time to work on it until you see the potential to make a business out of it. One thing that encourages this is America's attitude towards the "American Dream" in general...

We never hesitate in the United States when it comes to trying things out and taking risks. Endless successful business enterprises from the tech sector, energy, fashion & entertainment operations show that no one should be afraid of trying new things or making mistakes.

To spare time and effort, it often becomes a necessity to invest more time, and money. The United States' financial system is a great way to help entrepreneurs in the US who are acting on ambitious business ideas. Their decentralized banking system lends to promoting entrepreneurship at a local level. The country has 7,000+ small banks and plenty of Venture Capitalists who are interested in funding new ideas.

5.Working Culture

While there are excellent resources available, you won't believe how much of America's GDP comes from income tax. The country has a culture of hard work, and it is important to have a working population in order to keep America wealthy.

People in Germany work an average of 1400 hours per year compared to 1,800 hours per year in the United States. In addition, the tax-transfer system in Germany encourages increased earnings instead of penalizing it.

In 2019, American households have experienced an exceptionally high growth in personal per capital wealth. This is because they saved their tax cuts and started spending it on luxuries and saved money from this. They should do more good deeds because Americans are the wealthiest people in their country.

6.Invention, Innovation, and Scientific Research

The U.S. has some of the world's best research universities and they play a crucial role in invention, innovation, and scientific development. Many inventions created by the universities are licensed to companies for other uses.

The affluence and intelligence of US universities attracts high-quality talent from all around the world. This helps create and innovate new products in the U.S which can lead to new inventions, innovations, scientific research etc.

7.Internal Competition for Business

Fostering competition among the states is critical for improving the US economy. The decentralised system of government encourages improvements at every level which helps businesses become more prosperous and homeowners make better choices about where to live.The competition for businesses and residents caused by different taxation laws and legislation has only increased. The laws the state develop offer them a level of protection whilst increasing their revenue.

Some states have few or no income taxes and limit unions in labor laws. Others offer high-quality education & cheap in-state tuition for local universities. This decentralised system is unlike any other developed nations.

8.Manufacture and Services

There’s a hugely diverse population in the U.S. and they're consuming products and services at different rates. Whilst there are huge differences in wealth between poorer and richer people today, one thing is clear: consumption is clearly linked to economic development.

The United States is the largest importer and exporter of commodities. As a federal republic of 50 states, it has the most extensive internal market for trade of any country in the world. In 2018, total US trade amounted to nearly $5 trillion.One of the more remarkable things about modern western nations for example is that they are second-largest manufacturer in the world so plenty of the goods consumed are US brands. 20% of global manufacturing output is by US manufacturers.