Economy of the United States
The economy of the United States is a developed mixed economy. It is the world's largest economy by the second-largest by purchasing power parity, it has the world's seventh-highest per capita GDP and the eleventh-highest per capita GDP in 2016. The US has a diversified, world-leading industrial sector, it is a high-technology innovator with the second-largest industrial output in the world. The U. S. dollar is the currency most used in international transactions and is the world's foremost reserve currency, backed by its science and technology, its military, the full faith of the U. S. government to reimburse its debts, its central role in a range of international institutions since World War II, the petrodollar system. Several countries use it as their official currency, in many others, it is the de facto currency, its largest trading partners are China, Mexico, Germany, South Korea, United Kingdom, France and Taiwan. The nation's economy is fueled by abundant natural resources, a well-developed infrastructure, high productivity.
It has the second-highest total-estimated value of natural resources, valued at $45 trillion in 2016. Americans have the highest average household and employee income among OECD nations, in 2010, they had the fourth-highest median household income, down from second-highest in 2007; the United States has held the world's largest national economy since at least the 1890s. It is the world's largest producer of oil and natural gas. In 2016, it was the world's largest trading nation as well as its second-largest manufacturer, representing a fifth of the global manufacturing output; the U. S. has both the largest economy and the largest industrial sector, at 2005 prices according to the UNCTAD. The U. S. not only has the largest internal market for goods, but dominates the trade in services. U. S. total trade amounted to $4.92 trillion in 2016. Of the world's 500 largest companies, 134 are headquartered in the US; the U. S. has one of the world's largest and most influential financial markets. The New York Stock Exchange is by far the world's largest stock exchange by market capitalization.
Foreign investments made in the U. S. total $2.4 trillion, while American investments in foreign countries total to over $3.3 trillion. The U. S. economy is ranked first in international ranking on venture capital and Global Research and Development funding. Consumer spending comprised 68% of the U. S. economy in 2018. The U. S. has the world's largest consumer market, with a household final consumption expenditure five times larger than that of Japan. The nation's labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world; the U. S. is one of the top-performing economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report, others. The U. S. economy experienced a serious economic downturn during the Great Recession which technically lasted from December 2007 – June 2009. However, real GDP regained its pre-crisis peak by 2011, household net worth by Q2 2012, non-farm payroll jobs by May 2014, the unemployment rate by September 2015.
Each of these variables continued into post-recession record territory following those dates, with the U. S. recovery becoming the second-longest on record in April 2018. Debt held by the public, a measure of national debt, was 77% of GDP in 2017, ranked the 43rd highest out of 207 countries. Income inequality ranked 41st highest among 156 countries in 2017, ranks among the highest in income inequality compared to other Western nations; the economic history of the United States began with American settlements in the 17th and 18th centuries. The American colonies went from marginally successful colonial economies to a small, independent farming economy, which in 1776 became the United States of America. In 180 years, the U. S. grew to a huge, industrialized economy that made up around one-fifth of the world economy. As a result, the U. S. GDP per capita converged on and surpassed that of the UK, as well as other nations that it trailed economically; the economy maintained high wages. In the early 1800s, the United States was agricultural with more than 80 percent of the population in farming.
Most of the manufacturing centered on the first stages of transformation of raw materials with lumber and saw mills and boots and shoes leading the way. The rich resource endowments contributed to the rapid economic expansion during the nineteenth century. Ample land availability allowed the number of farmers to keep growing, but activity in manufacturing, services and other sectors grew at a much faster pace. Thus, by 1860 the share of the farm population in the U. S. had fallen from over 80 percent to 50 percent. In the 19th century, recessions coincided with financial crises; the Panic of 1837 was followed by a five-year depression, with the failure of banks and then-record-high unemployment levels. Because of the great changes in the economy over the centuries, it is difficult to compare the severity of modern recessions to early recessions. Recessions after World War II appear to have been less severe than earlier recessions, but the reasons for this are unclear. At the beginning of the century new innovations and improvements in existing innovations opened the door for improvements in the standard of living among American consumers.
Many firms grew large by taking advantage of economies of scale and better communication to run nationwide operations. Concentration in these industries raised fears of monopoly that would drive prices higher and output l
International Business Machines Corporation is an American multinational information technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company and was renamed "International Business Machines" in 1924. IBM produces and sells computer hardware and software, provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is a major research organization, holding the record for most U. S. patents generated by a business for 26 consecutive years. Inventions by IBM include the automated teller machine, the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, dynamic random-access memory; the IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s. IBM has continually shifted business operations by focusing on higher-value, more profitable markets.
This includes spinning off printer manufacturer Lexmark in 1991 and the sale of personal computer and x86-based server businesses to Lenovo, acquiring companies such as PwC Consulting, SPSS, The Weather Company, Red Hat. In 2014, IBM announced that it would go "fabless", continuing to design semiconductors, but offloading manufacturing to GlobalFoundries. Nicknamed Big Blue, IBM is one of 30 companies included in the Dow Jones Industrial Average and one of the world's largest employers, with over 380,000 employees, known as "IBMers". At least 70% of IBMers are based outside the United States, the country with the largest number of IBMers is India. IBM employees have been awarded five Nobel Prizes, six Turing Awards, ten National Medals of Technology and five National Medals of Science. In the 1880s, technologies emerged that would form the core of International Business Machines. Julius E. Pitrap patented the computing scale in 1885. On June 16, 1911, their four companies were amalgamated in New York State by Charles Ranlett Flint forming a fifth company, the Computing-Tabulating-Recording Company based in Endicott, New York.
The five companies had offices and plants in Endicott and Binghamton, New York. C.. They manufactured machinery for sale and lease, ranging from commercial scales and industrial time recorders and cheese slicers, to tabulators and punched cards. Thomas J. Watson, Sr. fired from the National Cash Register Company by John Henry Patterson, called on Flint and, in 1914, was offered a position at CTR. Watson joined CTR as General Manager 11 months was made President when court cases relating to his time at NCR were resolved. Having learned Patterson's pioneering business practices, Watson proceeded to put the stamp of NCR onto CTR's companies, he implemented sales conventions, "generous sales incentives, a focus on customer service, an insistence on well-groomed, dark-suited salesmen and had an evangelical fervor for instilling company pride and loyalty in every worker". His favorite slogan, "THINK", became a mantra for each company's employees. During Watson's first four years, revenues reached $9 million and the company's operations expanded to Europe, South America and Australia.
Watson never liked the clumsy hyphenated name "Computing-Tabulating-Recording Company" and on February 14, 1924 chose to replace it with the more expansive title "International Business Machines". By 1933 most of the subsidiaries had been merged into one company, IBM. In 1937, IBM's tabulating equipment enabled organizations to process unprecedented amounts of data, its clients including the U. S. Government, during its first effort to maintain the employment records for 26 million people pursuant to the Social Security Act, the tracking of persecuted groups by Hitler's Third Reich through the German subsidiary Dehomag. In 1949, Thomas Watson, Sr. created IBM World Trade Corporation, a subsidiary of IBM focused on foreign operations. In 1952, he stepped down after 40 years at the company helm, his son Thomas Watson, Jr. was named president. In 1956, the company demonstrated the first practical example of artificial intelligence when Arthur L. Samuel of IBM's Poughkeepsie, New York, laboratory programmed an IBM 704 not to play checkers but "learn" from its own experience.
In 1957, the FORTRAN scientific programming language was developed. In 1961, IBM developed the SABRE reservation system for American Airlines and introduced the successful Selectric typewriter. In 1963, IBM employees and computers helped. A year it moved its corporate headquarters from New York City to Armonk, New York; the latter half of the 1960s saw IBM continue its support of space exploration, participating in the 1965 Gemini flights, 1966 Saturn flights and 1969 lunar mission. On April 7, 1964, IBM announced the first computer system family, the IBM System/360, it spanned the complete range of commercial and scientific applications from large to small, allowing companies for the first time to upgrade to models with greater computing capability without having to rewrite their applications. It was followed by the IBM System/370 in 1970. Together the
Foreign exchange market
The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. This market determines the foreign exchange rate, it includes all aspects of buying and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the Credit market; the main participants in this market are the larger international banks. Financial centers around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. Since currencies are always traded in pairs, the foreign exchange market does not set a currency's absolute value but rather determines its relative value by setting the market price of one currency if paid for with another. Ex: US$1 is worth X CAD, or CHF, or JPY, etc; the foreign exchange market operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as "dealers", who are involved in large quantities of foreign exchange trading.
Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the "interbank market". Trades between foreign exchange dealers can be large, involving hundreds of millions of dollars; because of the sovereignty issue when involving two currencies, Forex has little supervisory entity regulating its actions. The foreign exchange market assists international trade and investments by enabling currency conversion. For example, it permits a business in the United States to import goods from European Union member states Eurozone members, pay Euros though its income is in United States dollars, it supports direct speculation and evaluation relative to the value of currencies and the carry trade speculation, based on the differential interest rate between two currencies. In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying with some quantity of another currency; the modern foreign exchange market began forming during the 1970s.
This followed three decades of government restrictions on foreign exchange transactions under the Bretton Woods system of monetary management, which set out the rules for commercial and financial relations among the world's major industrial states after World War II. Countries switched to floating exchange rates from the previous exchange rate regime, which remained fixed per the Bretton Woods system; the foreign exchange market is unique because of the following characteristics: its huge trading volume, representing the largest asset class in the world leading to high liquidity. As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements, the preliminary global results from the 2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $5.09 trillion per day in April 2016.
This is down from $5.4 trillion in April 2013 but up from $4.0 trillion in April 2010. Measured by value, foreign exchange swaps were traded more than any other instrument in April 2016, at $2.4 trillion per day, followed by spot trading at $1.7 trillion. The $5.09 trillion break-down is as follows: $1.654 trillion in spot transactions $700 billion in outright forwards $2.383 trillion in foreign exchange swaps $96 billion currency swaps $254 billion in options and other products Currency trading and exchange first occurred in ancient times. Money-changers were living in the Holy Land in the times of the Talmudic writings; these people used city stalls, at feast times the Temple's Court of the Gentiles instead. Money-changers were the silversmiths and/or goldsmiths of more recent ancient times. During the 4th century AD, the Byzantine government kept a monopoly on the exchange of currency. Papyri PCZ I 59021, shows the occurrences of exchange of coinage in Ancient Egypt. Currency and exchange were important elements of trade in the ancient world, enabling people to buy and sell items like food and raw materials.
If a Greek coin held more gold than an Egyptian coin due to its size or content a merchant could barter fewer Greek gold coins for more Egyptian ones, or for more material goods. This is why, at some point in their history, most world currencies in circulation today had a value fixed to a specific quantity of a recognized standard like silver and gold. During the 15th century, the Medici family were required to open banks at foreign locations in order to exchange currencies to act on behalf of textile merchants. To facilitate trade, the bank created the nostro account book which contained two columned entries showing amounts of foreign and local currencies. During the 17th century, Amsterdam maintained an active Forex market. In 1704, foreign exchange took place between agents acting in the interests of the Kingdom of Englan
Motorola, Inc. was an American multinational telecommunications company founded on September 25, 1928, based in Schaumburg, Illinois. After having lost $4.3 billion from 2007 to 2009, the company was divided into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011. Motorola Solutions is considered to be the direct successor to Motorola, as the reorganization was structured with Motorola Mobility being spun off. Motorola Mobility was sold to Google in 2012, acquired by Lenovo in 2014. Motorola designed and sold wireless network equipment such as cellular transmission base stations and signal amplifiers. Motorola's home and broadcast network products included set-top boxes, digital video recorders, network equipment used to enable video broadcasting, computer telephony, high-definition television, its business and government customers consisted of wireless voice and broadband systems, public safety communications systems like Astro and Dimetra. These businesses are now part of Motorola Solutions.
Google sold Motorola Home to the Arris Group in December 2012 for US$2.35 billion. Motorola's wireless telephone handset division was a pioneer in cellular telephones. Known as the Personal Communication Sector prior to 2004, it pioneered the "mobile phone" with DynaTAC, "flip phone" with the MicroTAC, as well as the "clam phone" with the StarTAC in the mid-1990s, it had staged a resurgence by the mid-2000s with the Razr, but lost market share in the second half of that decade. It focused on smartphones using Google's open-source Android mobile operating system; the first phone to use the newest version of Google's open source OS, Android 2.0, was released on November 2, 2009 as the Motorola Droid. The handset division was spun off into the independent Motorola Mobility. On May 22, 2012, Google CEO Larry Page announced that Google had closed on its deal to acquire Motorola Mobility. On January 29, 2014, Page announced that, pending closure of the deal, Motorola Mobility would be acquired by Chinese technology company Lenovo for US$2.91 billion.
On October 30, 2014, Lenovo finalized its purchase of Motorola Mobility from Google. Motorola started in Chicago, Illinois, as Galvin Manufacturing Corporation in 1928 when brothers Paul V. and Joseph E. Galvin purchased the bankrupt Stewart Battery Company's battery-eliminator plans and manufacturing equipment at auction for $750. Galvin Manufacturing Corporation set up shop in a small section of a rented building; the company had $565 in five employees. The first week's payroll was $63; the company's first products were the battery eliminators, devices that enabled battery-powered radios to operate on household electricity. Due to advances in radio technology, battery-eliminators soon became obsolete. Paul Galvin learned that some radio technicians were installing sets in cars, challenged his engineers to design an inexpensive car radio that could be installed in most vehicles, his team was successful, Galvin was able to demonstrate a working model of the radio at the June 1930 Radio Manufacturers Association convention in Atlantic City, New Jersey.
He brought home enough orders to keep the company in business. Paul Galvin wanted a brand name for Galvin Manufacturing Corporation's new car radio, created the name “Motorola” by linking "motor" with "ola", a popular ending for many companies at the time, e.g. Moviola, Crayola; the company sold its first Motorola branded radio on June 23, 1930, to Herbert C. Wall of Fort Wayne, for $30. Wall went on to become one of the first Motorola distributors in the country; the Motorola brand name became so well known that Galvin Manufacturing Corporation changed its name to Motorola, Inc. Galvin Manufacturing Corporation began selling Motorola car-radio receivers to police departments and municipalities in November 1930; the company's first public safety customers included the Village of River Forest, Village of Bellwood Police Department, City of Evanston Police, Illinois State Highway Police, Cook County Police with a one-way radio communication. In the same year, the company built its research and development program with Dan Noble, a pioneer in FM radio and semiconductor technologies, who joined the company as director of research.
The company produced the hand-held AM SCR-536 radio during World War II, vital to Allied communication. Motorola ranked 94th among United States corporations in the value of World War II military production contracts. Motorola went public in 1943, became Motorola, Inc. in 1947. At that time Motorola's main business was selling televisions and radios. In October 1946 Motorola communications equipment carried the first calls on Illinois Bell telephone company's new car radiotelephone service in Chicago; the company began making televisions in 1947, with the model VT-71 with 7-inch cathode ray tube. In 1952, Motorola opened its first international subsidiary in Toronto, Canada to produce radios and televisions. In 1953, the company established the Motorola Foundation to support leading universities in the United States. In 1955, years after Motorola started its research and development laboratory in Phoenix, Arizona, to research new solid-state technology, Motorola introduced the world's first commercial high-power germanium-based transistor.
Currency intervention known as foreign exchange market intervention or currency manipulation is a monetary policy operation. It occurs when a government or central bank buys or sells foreign currency in exchange for their own domestic currency with the intention of influencing the exchange rate and trade policy. Policymakers may intervene in foreign exchange markets in order to advance a variety of economic objectives: controlling inflation, maintaining competitiveness, or maintaining financial stability; the precise objectives are to depend on the stage of a country's development, the degree of financial market development and international integration, the country's overall vulnerability to shocks, among other factors. There are many reasons a country's monetary and/or fiscal authority may want to intervene in the foreign exchange market. Central banks agree that the primary objective of foreign exchange market intervention is to manage the volatility and/or influence the level of the exchange rate.
Governments prefer to stabilize the exchange rate because excessive short-term volatility erodes market confidence and affects both the financial market and the real goods market. When there is inordinate instability, exchange rate uncertainty generates extra costs and reduces profits for firms; as a result, investors are unwilling to make investment in foreign financial assets. Firms are reluctant to engage in international trade. Moreover, the exchange rate fluctuation would spill over into the financial markets. If the exchange rate volatility increases the risk of holding domestic assets prices of these assets would become more volatile; the increased volatility of financial markets would threaten the stability of the financial system and make monetary policy goals more difficult to attain. Therefore, authorities conduct currency intervention. In addition, when economic conditions change or when the market misinterprets economic signals, authorities use foreign exchange intervention to correct exchange rates, in order to avoid overshooting of either direction.
Anna Schwartz contended that the central bank can cause the sudden collapse of speculative excess, that they can limit growth by constricting the money supply. Today, forex market intervention is used by the central banks of developing countries, less so by developed countries. There are a few reasons most developed countries no longer intervene: Research and experience suggest that the instrument is only effective if seen as foreshadowing interest rate or other policy adjustments. Without a durable and independent impact on the nominal exchange rate, intervention is seen as having no lasting power to influence the real exchange rate and thus competitive conditions for the tradable sector. Large-scale intervention can undermine the stance of monetary policy. Developing countries, on the other hand, do sometimes intervene because they believe the instrument to be an effective tool in the circumstances and for the situations they face. Objectives include: to control inflation, to achieve external balance or enhance competitiveness to boost growth, or to prevent currency crises, such as large depreciation/appreciation swings.
In a Bank for International Settlements paper published in 2015, the authors describe the common reasons central banks intervene. Based on a BIS survey, in foreign exchange markets "emerging market central banks" use the strategy of "leaning against the wind" "to limit exchange rate volatility and smooth the trend path of the exchange rate". In their 2005 meeting on foreign exchange market intervention, central bank governors had noted that, "Many central banks would argue that their main aim is to limit exchange rate volatility rather than to meet a specific target for the level of the exchange rate". Other reasons cited were to "slow the rate of change of the exchange rate", "dampen exchange rate volatility", "supply liquidity to the forex market", or "influence the level of foreign reserves". In the Cold War-era United States, under the Bretton Woods system of fixed exchange rates, intervention was used to help maintain the exchange rate within prescribed margins and was considered to be essential to a central bank's toolkit.
The dissolution of the Bretton Woods system between 1968 and 1973 was due to President Richard Nixon's “temporary” suspension of the dollar's convertibility to gold in 1971, after the dollar struggled throughout the late 1960s in light of large increases in the price of gold. An attempt to revive the fixed exchange rates failed, by March 1973 the major currencies began to float against each other. Since the end of the traditional Bretton Woods system, IMF members have been free to choose any form of exchange arrangement they wish, such as: allowing the currency to float pegging it to another currency or a basket of currencies, adopting the currency of another country, participating in a currency bloc, or forming part of a monetary union; the end of the traditional Bretton Woods system in the early 1970s and the move to managed currencies led to a large scale increase in currency intervention throughout the 1970s and 80's. From 2008 through 2013, central banks in emerging market economies had to "re-examine their foreign exchange market intervention strategies" because of "huge swings in capital flows to and from EMEs.
Quite unlike their experiences in the early 2000s, several countries that had at different times resisted appreciation pressures found themselves having to intervene against strong depreciation pressures. The sharp rise in the US long-term interest rate from May to August 2013 led to heavy pressures in currency markets. Several EMEs sol
Nigel Lawson, Baron Lawson of Blaby, is a British Conservative politician and journalist. He was a Member of Parliament representing the constituency of Blaby from 1974 to 1992, served in the cabinet of Margaret Thatcher from 1981 to 1989. Prior to entering the Cabinet, he served as the Financial Secretary to the Treasury from May 1979 until his promotion to Secretary of State for Energy, he was appointed as Chancellor of the Exchequer in June 1983, served until his resignation in October 1989. In both Cabinet posts, Lawson was a key proponent of Thatcher's policies of privatisation of several key industries. Lawson oversaw the sudden deregulation of financial markets in 1986 referred to as the "Big Bang". Lawson was a backbencher from 1989 until he retired in 1992, now sits in the House of Lords, he is still active in politics as President of Conservatives for Britain, a campaign for Britain to leave the European Union, is a prominent critic of the European Union. He is chairman of the climate change sceptic Global Warming Policy Foundation think tank.
He has been an active supporter of the Eurosceptic pressure group Leave Means Leave. Lawson resides in France; however his application for French residency was refused and he is now selling his French property. He is the father of six children, including Nigella Lawson, a food writer and celebrity cook, Dominic Lawson, a journalist, Tom Lawson, headmaster of Eastbourne College. Lawson was born in 1932 to a wealthy Jewish family living in London, his father, Ralph Lawson, was the owner of a commodity-trading firm in the City of London, while his mother, Joan Elisa, was from a prosperous family of stockbrokers. His paternal grandfather, Gustav Leibson, a merchant from Mitau, changed his name from Leibson to Lawson in 1925, having become a British citizen in 1911. Lawson was educated at two independent schools: at Beechwood Park School in Markyate in Hertfordshire, followed by Westminster School in London, Christ Church, where he gained a first-class honours degree in Philosophy and Economics. Lawson carried out his National Service as a Royal Navy officer, during which time he commanded the fast-patrol boat HMS Gay Charger.
Lawson began his career as a journalist at the Financial Times in 1956. He progressed to the positions of City editor of The Sunday Telegraph in 1961 – where he introduced his friend Jim Slater's Capitalist investing column – and editor of The Spectator. Lawson stood unsuccessfully at the 1970 General Election for the Eton and Slough seat before becoming Member of Parliament for Blaby in Leicestershire in February 1974, which he held until retiring at the 1992 General Election. While in Opposition, Lawson co-ordinated tactics with rebellious Government backbenchers Jeff Rooker and Audrey Wise to secure legislation providing for the automatic indexation of tax thresholds to prevent the tax burden being increased by inflation. On the election of Margaret Thatcher's government, Lawson was appointed to the post of Financial Secretary to the Treasury. Although this is the fourth-ranking political position in the UK Treasury, Lawson's energy in office was reflected in such measures as the ending of unofficial state controls on mortgage lending, the abolition of exchange controls in October 1979 and the publication of the Medium Term financial Strategy.
This document set the course for both the monetary and fiscal sides of the new government's economic policy, though the extent to which the subsequent trajectory of policy and outcome matched that projected is still a matter for debate. In the Cabinet reshuffle of September 1981, Lawson was promoted to the position of Secretary of State for Energy. In this role his most significant action was to prepare for what he saw as an inevitable full-scale strike in the coal industry over the closure of deep coal mines whose uneconomic operation accounted for the coal industry's business losses and consequent requirement for state subsidy, he was a key proponent of the Thatcher Government's privatisation policy. During his tenure at the Department of Energy he set the course for the privatisations of the gas and electricity industries and on his return to the Treasury he worked with the Department of Trade and Industry in privatising British Airways, British Telecom, British Gas. After the Thatcher Government's re-election in 1983, Lawson was appointed Chancellor of the Exchequer in succession to Geoffrey Howe.
The early years of Lawson's chancellorship were associated with tax reform. The 1984 Budget reformed corporate taxes by a combination of reduced allowances; the 1985 Budget continued the trend of shifting from direct to indirect taxes by reducing National Insurance contributions for the lower-paid while extending the base of value added tax. During these two years Lawson's public image remained low-key, but from the 1986 Budget, his stock rose as unemployment began to fall from the middle of 1986. Lawson changed the budget deficit from £10.5 billion in 1983 to a budget surplus of £3.9 billion in 1988 and £4.1 billion in 1989, the year of his resignation. During these years, the UK's current account deficit rose from below 1% of GDP in 1986 to 5% in 1989, with Lawson asserting that an external defic
Executive Office of the President of the United States
The Executive Office of the President of the United States is a group of agencies at the center of the executive branch of the United States federal government. The EOP supports the work of the President, it consists of several offices and agencies, such as the White House Office, National Security Council or Office of Management and Budget. With the increase in technological and global advancement, the size of the White House staff has increased to include an array of policy experts to address various fields of the modern day. There are about 4,000 positions in the Executive Office of the President, most of which do not require confirmation from the U. S. Senate; the budget for the EOP in FY 2017 was $714 million. The Executive Office is overseen by the White House Chief of Staff, since January 2, 2019 held by acting Chief of Staff, Mick Mulvaney, appointed by Donald Trump, the current and 45th President of the United States. In 1939, during Franklin D. Roosevelt's second term in office, the foundations of the modern White House staff were created.
Based on the recommendations of a presidentially commissioned panel of political science and public administration experts, known as the Brownlow Committee, Roosevelt was able to get Congress to approve the Reorganization Act of 1939. The Act led to Reorganization Plan No. 1, which created the EOP. The EOP encompassed two subunits at its outset: the White House Office and the Bureau of the Budget, the predecessor to today's Office of Management and Budget, created in 1921 and located in the Treasury Department, it absorbed most of the functions of the National Emergency Council. The new staff system appeared more ambitious on paper than in practice, but it laid the groundwork for the large and organizationally complex White House staff that would emerge during the presidencies of Roosevelt's successors. Roosevelt's efforts are notable in contrast to those of his predecessors in office. During the 19th century, presidents had few staff resources. Thomas Jefferson had one messenger and one secretary at his disposal, both of whose salaries were paid by the president personally.
It was not until 1857. By Ulysses S. Grant's presidency, the staff had grown to three. By 1900, the White House staff included one "secretary to the president", two assistant secretaries, two executive clerks, a stenographer, seven other office personnel. Under Warren G. Harding, there were thirty-one staff. During Herbert Hoover's presidency, two additional secretaries to the president were added by Congress, one of whom Hoover designated as his Press Secretary. From 1933 to 1939 as he expanded the scope of the federal government's policies and powers in response to the Great Depression, Roosevelt muddled through: his "brains trust" of top advisers were appointed to vacant positions in agencies and departments, whence they drew their salaries since the White House lacked statutory or budgetary authority to create new staff positions. After World War II, in particular during the presidency of Dwight David Eisenhower, the staff was expanded and reorganized. Eisenhower, a former U. S. Army general, had been Supreme Allied Commander during the war, brought ideas of effective organization from that experience.
Today, the staff is much bigger. Estimates indicate some 3,000 to 4,000 persons serve in EOP staff positions with policy-making responsibilities, with a budget of $300 to $400 million. Senior staff within the EOP have the title Assistant to the President, second-level staff have the title Deputy Assistant to the President, third-level staff have the title Special Assistant to the President; the core White House staff appointments, most EOP officials are not required to be confirmed by the U. S. Senate, although there are a handful of exceptions; the information in the following table is current as of April 4, 2018. Only principal executives are listed; the White House Office is a sub-unit of the Executive Office of the President. The various agencies of the EOP are listed above. Title 3 of the Code of Federal Regulations Title 5 of the Code of Federal Regulations White House Records Office Executive Office of the President The Debate Over Selected Presidential Assistants and Advisors: Appointment and Congressional Oversight Congressional Research Service Proposed and finalized federal regulations from the Executive Office of the President of the United States Works by Executive Office of the President of the United States at Project Gutenberg Works by or about Executive Office of the President of the United States at Internet Archive