What contributed the US Economic expansion?

Answer 1

This is a very broad question that would be best asked more specifically regarding to a time frame, such as "What contributed to the expansion of the US economy in the 2nd half of the 20th Century?"

However, as this question stands it can be answered in a very general way. This requires the understanding that from a broad perspective, the US economy has expanded through the course of its existence. Also, the question does not refer to economic contractions. Over the long term the economic contractions that were based on recessions and even a depression, certainly delayed the long term expansions.

With all this in mind, and based on the fact the US began its existence in the late 18th Century, here are a list of factors that, in the long term, made the US economy an expansive one. Some of these factors were detrimental to various "people groups" and to delve into those areas would require a very long response. Here are the main factors of the long term expansion of the US economy:

1. Available farmlands. The growth of its agricultural sector allowed for less imports and its large exports created a surplus to the economy. At one time the US was actually exporting grain to the Soviet Union.

2. Available mineral wealth. The US acquired new land from purchases from France ( early 19th century Louisiana Purchase ) and the Russian government ( Alaska 1867 ) many years ago. This added to its available farmlands and new mineral wealth was also discovered in much of the purchased land.

3. A 19th Century war with Mexico added new territory to the US and thus farmlands and mineral deposits were gained from these sources.

4. Domestic oil. The US State of Texas, once part of Mexico, yielded millions of gallons of oil for a good part of the 20th century.

5. Gold. Based on the war with Mexico, the gold found in California,added to the US expansion.

6. Gold and Oil. Based on the oil and gold found in Alaska, the economy was enriched.

7. Low cost labor. Up until the end of the US Civil War, exports of cotton and tobacco added wealth to the economy. Most of this, ending in 1865, was produced in the Southern US States that used low cost slavery. The cotton and tobacco did continue to help exports and at the same time reduce the need to import such products.

Immigrant labor. The US was very open to new labor from Europe and China. This was low cost labor. This factor helped build the vast US railway system which enhanced and reduced transportation costs. Western territorial lands ( from the wars with Native Americans ) were now easier to get to, thus aiding the creation of new farmlands.

8. Steel. Steel mills in Pennsylvania helped build the infrastructure of the US. This began late in the 19th century. There was no need to import iron ore or steel as it was all domestic.

9. Federal help. Lest I forget, all the lands needed by the railway companies were owned by the Federal Government. Friendly lease terms enabled the railways to proceed.

10. Favorable tax policies. The Federal & State governments had low tax systems. This kept funds in private hands for investments in factories, new products, and low taxes on farm produce. ( It should be noted that low taxation helps any economy. Governments have a bad record in "creating" any wealth, generally speaking, Governments don't know how to build much, at least that was the case in the US.)

11. Inventions and technology. The industrial revolution help expand the US economy. Inventions from the cotton gin to better steamboats all enhanced the 19th century economy and beyond into the 20th century.

This covered such items as the telephone, the airplane, lighting, movie production. Later assembly line car making made cars cheaper to buy.

12. Favorable geographic location. This avoided the many conflicts in Europe that hindered favorable economic growth.

13. Arms supplies. Brought on from the US Civil War, the US became a large weapons producer. The aircraft industry whether for passenger planes to military ones meant no need to import them. Even today, arms production (especially in aircraft ) continues to be a plus export item.

14. Sales of all types of products to Europe that were needed in the world wars helped the US economy.

15. The imperialism in the early 20th century helped build the Panama Canal. This decreased the time shipping needed to reach various parts of the Western Hemisphere.

16. Hi - Tech products. Early break throughs in the computer industry sparked new industries. The internet was created somewhat from an old US Military communications system. Companies like Microsoft, Oracle and Cisco Systems earned huge profits. Later other countries produced these products.

17. Lest I forget, the US was still regarded as a free market economy. This attracted investments from abroad. The US economy however is nothing close to the one that existed in the 19th & early 20th centuries. It was not until 1912 that a Federal Income Tax was created. Now the economy is a vastly government regulated one. Still, however, its more open than some other large countries.

To the reader: Please understand I used basic information here, from no outside sources. I certainly may have left important things out. But as I mentioned at the beginning of my answer, the question is extremely broad. I asserted no "blame" or blunders by people in the history of the US.

The current economy is bogged down in a long recession. The factors involved in this are debatable as we live in a "world economy".

I covered everything from slavery to cheap labor costs to supplying war weapons.

Answer 2

This is a very broad question that would be better asked concerning a more specific span of time. With that said, the question can be answered in a general fashion which covers the broad expanse of the US economy. Over the long term, the US economy has exhibited a rather favorable pattern of economic growth. The basis of this growth has been to allow the free market to determine its own course with a minimal amount of regulations in comparison to most other western economies. Also, the extreme economic damage by World War Two, in particular, occurred in Europe and the Soviet Union. In an essay written some time ago, and seen directly below this paragraph are more explicit reasons for the economic success of the US economy over the span of its existence.