Jefferson County Educational Service Center

ECONOMIC GEOGRAPHY OF THE UNITED STATES

Unit Overview

This unit will show the student issues, challenges and possible solutions to Global economy based on imports, exports and technological changes. In addition, information will be explained on why there was a need to change America’s means of transportation and communication techniques.

The United States and Canada’s economy is similar; they have what we call a Market economy, in which people own, profit and operate the business. In a market economy, people have the right to decide what to produce, how much to produce and whom to produce it for. The United States and Canada both have laws that protect the rights of property owners, employment opportunities and the health and safety of its workers.

Read more about Free-Market Economy in the PDF File.

We have discussed in a previous unit that the United States has moved from an economy based on agriculture to one based on industry. This had created new challenges for the United States and Canada as both countries have to move industries that are focused on the growing need for technology and services. The chart below shows that? Can you explain the trend?

Agriculture

The role of farming in both the US and Canada is one based on commodities. A commodity is a good produced for sale; an example of this are fruits and vegetables. The key agricultural products produced in North America are wheat and corn. Wheat is produced on the Wheat Belt, which we know it as the Great Plains. Corn, is another big agriculture product, which is grown from Ohio to Nebraska.

Technology has also changed the way we view how Agriculture works. In the past, geographic factors affected and limited where we grow crops. For example, Dairy farms were found in cooler areas such as Minnesota, but because of improved automated feeding machines, Dairy Farms are now found in every state in the United States. We make the mistake in thinking that a farmer is all about tractors and garden tools. Technology has made it possible for us to get the goods for us to consume. Today, large plots of land may be farmed, with machines, helping farmers to be paid for their crops.

Transportation and Communication

The United States and Canada both have grown so big and fast, a new transportation and communication system was essential. If we have no way to transport goods, how do we get it? What is the most popular way of transportation? The most popular means of transportation in the United States are automobiles.

The automobile has had a trickledown effect on our entire economy. It has required us to build roads and bridges, and how does that effect us? The concept of building roads and bridges requires jobs. Building roads and bridges will be a big part of rebuilding our economy.

As great as the automobile has been it has had drawbacks. Automobiles produce air pollution.

Today, American automakers are working on producing cars that produce less pollution and are more energy efficient. This is an example of another challenge the United States and Canada face.

Read about the Canada-United States Auto Pact in the PDF File.

Because North America covers so many miles, the automobile is not always practical. The development of the airplane allows us to travel from coast to coast. As with the automobile, the airplane has had a similar effect, as it has created many jobs. We also have seen the railroads and rivers play key roles in transporting goods from place to place.

For more information on population density and the interstate system, click on the following: 1950 PDF map and the 2000 PDF map.

Communications

The success of the United States and Canada can also be traced to the improved communication system. We can communicate with each other in a matter of moments using email; we can watch any show we want with the introduction of satellite radio and television. These all not only make our lives easier and more enjoyable, but also create jobs. The government plays a key role in managing these firms. The government ensures there are no monopolies, or one person having total control of an industry.

We will look at economics of geography in other units. What you should be able to do is to compare how different North America is from other continents such as Latin America and Africa.

Trade and Interdependence

Since the United States and Canada are so close to each other, it would make sense they would also be dependent on each other for many things. Why trade with a country in Europe when you can get it from Canada? Today, you hear the term global economy thrown around in every news broadcast. Just what is a global economy? A Global economy is the merging of economies in which countries are dependent on one another for goods and services. The chart below will show you how the world has become a global economy. Notice the changes to the GDP; the GDP is the gross domestic product, which is the value of all goods produced in a country in a given year.

Exports and Imports

The United States spends more on imports, goods brought into a country from another country, than they do on exports, goods sent to another country. This has resulted in a trade deficit, the negative difference in value between a country’s imports and exports. The cause of the trade deficit is because some countries charge a high tariff, or tax on imported goods. These make the goods very expensive to buy, and that lowers sales and demand for the product. On the other hand Canada enjoys a trade surplus, which means they export more than they import.

Read about the U.S. trade deficit in the PDF File.

Part of being in a global economy is also being a part of regional trade organizations. Along with Mexico, the United States and Canada are part of NAFTA, North American Free Trade Agreement, an agreement that has removed tariffs, quotas between the three countries. This has made trade easier among the three nations by taking away the trade barriers.

nafta

We learned about NAFTA in an earlier unit and NAFTA is a good example to help us understand how economics can change the geography of a country. How you ask? Companies are always looking to lower the cost of producing their product (remember, the lesser it cost to make a product, the higher the profits will be). Many companies have moved their plants to Mexico where the labor costs are far lower than in the United States. This has created the need for people to move to find new jobs.

Terrorism

The United States and Canada are key allies in the fight against terror. After the attacks of September 11, 2001 the United States created the Smart Border action plan which monitors the flow of people between countries. This has been helpful in preventing illegal goods from being shipped into one country from the other.

The People and Their Environment

In the United States and Canada, years of emissions produced by automobiles and industries along with the use of natural resources have taken their toll on the environment. As a result, we are exploring alternative energy sources that are both clean and renewable. The Diagram below shows the benefits and drawbacks to different types of energy. Notice how they all effect geography? Would people want to move near a nuclear power plant?

	BENEFITS	DRAW BACKS
NUCLEAR ENERGY	Does not produce greenhouse gases	Radioactive
	Stable energy prices	Potential for attacks and accidents
SOLAR/WIND	Does not produce waste	Expensive startup costs
	Renewable	Power depends on sun/wind
FOSSIL FUELS	Easiest to store	Non-renewable
		Emits greenhouse gases
HYDROELECTRIC POWER	Low operating costs	Requires lots of space
		Threatens rivers/aquatic life

We have not managed our resources in a responsible manner. We have engaged in clear-cutting, or taking out forests when harvesting timber. This is one reason human activity changes geographic patterns. When we take out an entire forest, what jobs will loggers have? They will not, and therefore they will have to relocate where there are more forests. The impact of jobs is affected by changing the geographic patterns of the region. However, we could also say that renewable resources, such as forests can be replaced, if managed carefully.

One of the unfortunate consequences of industry is human made pollution. An example of this is Acid Rain, which are rains that carry a high amount of acid. Acid rain can pollute the soil, which in turn will damage crops. What does this have to do with geography? What will happen if an entire farm is destroyed? The food supply will be affected and farmers will need to relocate.

Read additional information on Reducing Acid Rain in the PDF File.

Acid rain contributes to smog. Smog creates a haze that can be damaging to a person’s lungs. Smog is found in many metropolitan areas, which has contributed to urban sprawl. Look at the photo of smog in Los Angeles; can you see how it would affect the geography?

smog

With the issue of acid rain, attention is drawn to the Great Lakes Basin. This is because many "smokestack" industries are located in and near the Basin, and many people believe that the pollution from these industries contributes to the acid rain problem in Ontario, eastern Canada and northeastern United States. Ways that humans have affected the quality of the Great Lakes water over the centuries include sewage disposal, toxic contamination through heavy metals and pesticides, overdevelopment of the water's edge, runoff from agriculture and urbanization, and air pollution.

We have made strides in reversing the effects of pollution. NAFTA has shifted the environmental concerns towards Mexico. The reason is that businesses have created factories in Mexico. The United States has created new laws that help reverse the environmental problems caused by industry.

Encarta Encyclopedia states “Smog prevention requires control of smoke from furnaces; reduction of fumes from metal-working and other industrial plants; and control of noxious emissions from automobiles, trucks, and incinerators.”