Lecture 6: USA

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Florida – Despite the bad economy, more people are deciding to live

where the sun is.

Soon to have the third largest population in US.

North Dakota – New sources of oil are being exploited

Maine & West Virginia – States with little immigration (population

is old and white) are having extremely reduced growth.

Nevada & Arizona – People are migrating to these states to benefit

from proximity to California at a lower price. Arizona is also known for its

extreme conservatism and its residents’ racism (anti-immigration, resistance to

celebrating Martin Luther King Day).

The US is becoming Europe – Many of the same problems as Europe’s aging

population.

The article talks about the “oil and gas boom” in North Dakota.

Great quantities of shale gas are being extracted there.

This is done by a hydraulic fracturing technique using water, sand and

chemicals called fracking. (Notice the proximity to underground water sources.

Methane contamination is a serious risk.)

Careful : It could happen in Europe…

Article : The

changing Demographics of America:

- Remember how

Europe’s population is aging?

- In Europe, one

third of the population will be over ….

- The graying

of America

- Now: Age +65

= 13% of the population

- By 2050: age

+65 = 20% of population

- Also by 2050,

the 15 to 64 age group is expected to grow by 42%, the us population will grow

by 100 million inhabitants.

- Environmentalists

are very worried about the growth of the 15-64 age group in the US.

- This could

have serious consequences for the US economy, which may eventually be running

on empty

- But remember

the article on europe’s aging population? Europe needs young people to continue

to be competitive.

- And the us

will have an excessive number of young people.

- So – what is

worse for the us?

o A relatively

costly young population by 2050?

o Or

o A pool of

young people ready to meet the challenges of future technology?

What happens when America no longer needs Middle Eastern oil?

- Since world

war II, the us has protected their middle east oil producers.

- This task had

been performed by Great Britain from the late 1700’s to WWII.

- These police

actions are taken to maintain political stability in the region and to ensure

the supply of oil to western countries and East Asia.

- But now the

us plans to be self-sufficient In energy by 2030

- They could

save 100 billion US dollars every year if they stopped policing the Middle

East.

- The winners:

o Iran – fewer

problems if the us is not present

o China – the

peoples liberations army – would assume the us military influence on the middle

east

- The losers:

o Israel – more

difficult to protect this important ally of the west

o East Asia –

gets 90% of their oil from the Middle East. Availability would be uncertain,

and prices could rise.

Trade in USA

Balance of trade = the relation between the value of a country’s imports

and exports over a period of time.

Trade deficit = when a country imports more than it exports. Initially

good for the consumer, but leads to loss of local jobs.

Trade surplus = when a country exports more than it imports.

Three factors influencing the balance of trade:

- costs of

materials – raw materials, resources

- currency exchange

rates

Three objectives of us policy-makers:

- prosperity

- stability

- long-term

partners

NAFTA: North American Free Trade Agreement

Prosperity leads to immigration (both legal ans otherwise), and

ultimately, increased properity.