Economic History of the United States - Essay Example

2Yusuke Yamashita Collapse paper The United s of America has one of the largest and most advanced economies in the world. Its Gross Domestic Product amounted to 11.75 trillion dollars in 2004 (CIA). Majority of the leading global companies originate from the US or are currently owned by American corporations. The US dollar has been a world standard in terms of foreign exchange rates for decades. This and a lot of other factors clearly highlight how powerful and significant is US economy on a world scale. They also infer how pervasive its effect on the world environment can be. Economic history of the United States of America extends over a period of less than two and half centuries. Over the course of this period, the US economy had multiple series of progress and problems. The United States has grown from an alliance of thirteen British colonies with distinct economies and institutions to the unified state which nowadays accounts for more than fifth of the world economy ("Economic history of the US"). US economy today is based on three major elements. The first element is its natural resources. The continent of the United States has rich mineral resources and favorable terrain, as well as mild climate conditions. It also has broad access to the ocean and corresponding transportation routes, encompassing the coastlines of both the Atlantic and Pacific Oceans, as well as that of the Gulf of Mexico. Additional shipping routes are ensured by a host of rivers crossing the country and the Great Lakes along the border with Canada. These extensive transportation channels endorsed the economic growth of the USA, especially at early stages, and played a significant role in uniting America's 50 individual states into a full-fledged economic unit ("Economy of the United States"). The second ingredient is its human resources. USA has the third largest population in the world, which was estimated to be ca 295 mil people in July 2005 (CIA). The labor force is one of the major factor of economic growth and therefore prosperity of the country. On the other hand, country's citizens are also its biggest asset. Their welfare should be one the top of government's priorities list. Good environmental conditions and balanced habitats are essential to the welfare and health of the people, which makes environmental regulation extremely significant. The third element is industrial production and investments. USA is a home to corporations, which are complex organization governed by extensive set of rules and owned by stockholders. Boosted by the advent of mass production corporations like General Electric have been crucial in shaping the country. Using stock exchanges and financial markets American investors and banks managed to substantially increase their capital investing and withdrawing funds from profitable corporations. In the current era of globalization US investors and corporations have even larger influence on the world than ever before. ("Economic history of the US") It is essential to know these because above described components are vital in making the economy of the United States prosper. Therefore, it is imperative that the US government initiate regulation in order to preserve these valuable resources. Some regulations and policies that control these resources, however, are at times being overlooked not only by private corporations but the US government itself. Some private corporations in the USA abuse the use of natural resources, which leads to the destruction of the environment and increase in pollution, both harmful to human beings. The government, on the other hand, sometimes disregards these issues and even makes some initiatives to accelerate the economy at the expense of environmental deterioration. One of the recurring problems faced by the US government is energy. The government has been constantly seeking for appropriate means to regulate the use of energy and find new energy sources. US government has been extensively seeking for such sources as oil, nuclear plants and coil. Even though the government has passed numbers of Energy bills, it has been reluctant to regulate usage of those natural resources and consider its negative impact on environment. In 2001, US government decided to move away from the countries that committed to reduce their emissions of carbon dioxide and five other greenhouse gases (Kyoto Protocol to the United Nations Framework Convention on Climate Change settled in 1997), though USA occupied 36.1 % of total emissions of carbon dioxide in the world. It is clear that this decision was economically motivated. It can potentially have profound harmful effect on species not only in the USA but in the whole world in the future. "The Observed Impacts of Global Climate Change in the US" written by Camille Parmesan, the professor of University of Texas-Austin, warns that the massive number of extinction of species living on the earth is presently happening. The report states that a half of targeted 150 different wild species has been affected by the global warming. For example, one of the butterflies (edith's checkerspot) has been dramatically decreasing in population size in the areas around the border between Mexico and California due to the considerable change of temperature there. Another author of the report, Hector Galbraith, who works at University of Colorado-Boulder, says that if global warming keeps growing at the current rate and scale, by 2050 the 2/3 of overall species in the world would disappear from the earth. Another recent regulative act approved by the government that threatens wildlife is one that permitted oil exploration in Alaska's Arctic National Wildlife Refuge. According to Interior Department's U.S. Geological Survey, oil drilling in the coastal parts of refuge could have an especially harmful effect on the Porcupine caribou herd. The report, based on 12 years of investigation, shows that caribou, which use the coastal plain for calving, are "particularly sensitive" to disturbance from oil exploration and other human industrial activities, and are likely to avoid roads and pipelines. USGS scientists also confirmed that oil extracting activities are likely to endanger other refuge wildlife, including polar bears, musk oxen and snow geese. ("The Artic National Wildlife Refuge") The recent issue with regard to the government's policies on wildlife protection is not to eliminate the endangered species protection from the grizzly bears in the Yellowstone National Park. Lifting protection from these species would make bears vulnerable to hunters and will put their habitats in danger of being transformed into industrial factories or ultimately residential areas. Without appropriate governmental protection the grizzly bears would most probably move to the verge of extinction. The government also does not show enough commitment to preserve marine resources. In April 2002 the government permitted to continue extensive fishing, even though it was clearly indicated that 12 out of 18 New England fish stocks considerably diminished. New England fish populations decreased by 70% from usual historical levels, while fishing increased by 300%. But the central government or empowered governmental agencies didn't take effective measures to improve the situation. The agreement put forth by the National Marine Fisheries Service failed to impose limits on when, how and where fishermen can fish, as required by the Sustainable Fisheries Act of 1996. Environmentalists claim that the measures stipulated by the agreement are much weaker than those that had been proposed by the federal government over the last several months ("Administration's plan allows over fishing in New England"). According to the report by National Resources Defense Council, the National Marine Fisheries Service in August 2005 made decision to totally remove protection from several thousands of river miles in California and Washington. Those river miles serve as natural habitat for salmons. According to the National Marine Fisheries Service, lifting the protection from thousands of river miles will be cost-effective and advantageous. Environmentalists, on the contrary, proclaim that removing protection will lead to the early collapse of the salmon species located in the area. Problems with the national budget also have negative effects on environmental protection. The National Oceanic and Atmospheric Administration faces devastating budget cuts for 2005 due to the unwillingness of Bush administration to tackle the issue of global warming. The budget document of the NOAA's Office of Oceanic and Atmospheric Research shows that the proposed budget for 2005 almost fully removes the agency's research on rapid climate change and its effects on human health. NOAA's climate change program is planned to be cut from $70 million in 2004 to $59 million in 2005, including major decrease to paleoclimatology and educational outreach programs. ("Bush administration slashes funding for global warming research") Another evidence of this disregard to environmental problems was the cut in the budget for clean water fund approved by Congress. The most important and frustrating is that Congress approved this cut being fully informed by the federal officials that "almost half of America's rivers and lakes do not meet basic Clean Water Act standards and an estimated 8 million people suffer every year from waterborne illnesses caused by drinking dirty water or swimming in pollution" ("Congress Cutting Clean Water Funding"). One more factor that substantially contributes to collapses in environment is extreme industrialization of lands. As a result, some natural habitats of animals are persistently destroyed. Extensive construction and industrialization does not only intimidate the lives of animals but also disrupts the environmental balance and leads to increasingly alarming problems with air and water pollution. Continued excessive cutting of forests significantly contributes to global warming. The abundant use of commercial pesticides is also harmful to animals and the whole environment. These shortcomings in government's regulation of environment should be dealt with at the earliest. The failure to properly protect environment in a long-run will cause irreversible damage to the environment, wildlife, humans and the economy as a whole. Referring back to the beginning of the essay, natural resources and human resources are two most essential components of the US economy. Therefore, appropriate regulations and measures should be taken in order to conserve these. The preservation, safety and welfare of these resources should be the government's foremost priority. It is impossible for the government to be perfect, with issues and concerns naturally arising. The government's responsibility is to check-and-balance the regulations it creates and ensures that these regulations are for the common good of the people. We as citizens are also responsible for safeguarding the environment. Even if the government is not always willing to see the actual short-term and long-term consequences of its actions, the citizens should always be responsible enough to make a stand and clearly pinpoint what is right for the nation. The future depends on our actions today. We must protect our environment as it is an integral part and shaper of our own life. References "Administration's plan allows over fishing in New England" The Bush Record. 12 August 2005. Natural Resources Defense Council. 20 November 2005. "Bush administration slashes funding for global warming research" The Bush Record. 12 August 2005. Natural Resources Defense Council. 20 November 2005. "Congress Cutting Clean Water Funding" The Bush Record. 12 August 2005. Natural Resources Defense Council. 20 November 2005. CIA - The World Factbook. 21 November 2005. "Economy of the United States." Wikepedia. 20 November 2005. "Economic history of the United States." Wikepedia. 20 November 2005. "Grizzly Bears in peril." 24 August 2005. Natural Resources Defense Council. "The Bush administration slashes habitat protections for salmon." The Bush Record. 12 August 2005. Natural Resources Defense Council. 20 November 2005. "The Artic National Wildlife Refuge." The Bush Record. 12 August 2005. Natural Resources Defense Council. 20 November 2005. "Summary of the Harmful Provisions in the Energy Bill." 26 July 2005. National Resources Defense Council. 20 November 2005. Read More