Although they have the strongest economy in the world the United States have some major economic concerns like corporate debts, national debts, external debts, mortgage debts, low savings rate, huge deficit in current accounts, and falling house prices. At $13 trillion, as of June 2008, the U.S. has the highest external debt in the world. Estimates as on June 2007 show the United States public debt is about 65% of the GDP and as of October 1, 2008, the United States federal debt has exceeded $10 trillion.

History of U.S. Economy:

The history of the U.S. economy dates back between 16th and 18th century in the European settlements when the colonies developed from small successful colonial economy to the more independent farming economy and later became the United States of America. In a matter of 230 years the United States matured to a gigantic industrialized economy that makes up to over a quarter of the world economy today. Supportive legal and political system, vast lands available for productive farming, and huge natural resources were the major factors that led to such massive growth. Today, the US economy attracts millions of immigrants from around the world as it offers high wages. The Great Depression that started in 1930's and the country feared recession was inevitable. The government devised ways to combat recession by cutting taxes and spending heavily and encouraging the consumers to spend more. The economy suffered in the 1970's during the Vietnam War and the government were concerned about controlling inflation than fighting recession. Since then they have had a relatively slow economic progress.

An Overview:

The main trait of the US economy is the amount of liberty given to the private sector. The private sector makes most of the economic decisions and determines how the economy should be. This is augmented by less intervention by the government and the court of law.

There are numerous ways by which the US federal government can regulate private enterprises.
They fall under two broad categories:

Economic Regulations are to ensure that no enterprise makes unreasonably large profits.
Social Regulations are to ensure the private enterprises maintain a healthy environment and contribute to the safety of public health.

The federal government policies, and the decisions taken in the Federal Reserve and other business decisions are made depending on which way the US economy is heading. These economic predictions are made by many institutions including the California Department of Finance, Global Insight, and UCLA Anderson Forecast.