Key Facts

GDP (ppp) per CAPITA

$46,900 (2008 est.)

Inflation Rate

3.8% (2008 est.)

Population

307,212,123 (July 2009 est.)

Country Risk Ratings

A2

Ease of Doing Business

3/181

Global Competitiveness

1/134

United States : History

It is hypothesized that the original inhabitants of the American continents were Asiatic residents, who crossed a land bridge over the Bering Strait. Using this theory, the arrival of indigenous Americans would be placed around 25,000 years ago. However, this evidence is not definitive. Prior to the "discovery" of the North American continent by European explorers, Native Americans were grouped in many hundreds of tribes. For the majority, smaller settlements and semi-nomadic lifestyles were the norm. Native Americans cultivated a number of the more popular food crops including maize (corn), beans, tomatoes, and potatoes. Maize was the staple crop and acted as the basis of the cuisine.

After European discovery, life began to change dramatically. Diseases of which the Native Americans had no natural immunity (namely smallpox) began to kill by the thousands. The first European post in the present day United States is believed to have been located somewhere along the coast of Georgia or South Carolina. Due to the profitability of the fur trade, English and French explorers began settlements in the 1500s. The original permanent British settlement was located in Jamestown Virginia in 1607. A few years later, the Puritans founded Plymouth Colony to escape persecution in their native England.

For more than 150 years the settlements along the Atlantic coast began to grow, leading to the formation of the original 13 colonies. On July 4, 1776 the colonists declared independence from Great Britain, igniting the Revolutionary War. France aided the Americans' fight for independence and provided troops and warships. The last major armed conflict occurred in Virginia in 1781. French and American troops surrounded the British forcing their surrender. The war officially ended with the adoption of the Treaty of Paris in 1783.

George Washington, a Revolutionary War hero, was elected as the country's first President. The third President, Thomas Jefferson, orchestrated the Louisiana Purchase. This territorial claim from France more than doubled the size of the United States. This land purchase sparked the movement to the Western US.

The country continued to grow until 1860, when the country became divided over the legality of slavery. By 1861, eleven states (Southern) had seceded from the Union and formed an independent nation, the Confederate States of America. The armed conflict began in April 1861 with the Confederate capture of a Union outpost in South Carolina. The major battle took place in Gettysburg, Pennsylvania in the summer of 1863. The conflict ended in a defeat of the Confederate troops in what would be the bloodiest clash ever on American soil. The Civil War ended two years later, with the Union succeeding.

Following the War, the US emerged as a leading industrial power. In 1869, the country was united with the transcontinental railroad. In the early 1900s, inventors and business leaders took center stage as America began to lead the way in technical innovations. Henry Ford became a household name after creating the concept of an assembly line, which created an affordable automobile for the mainstream market.

World War I engulfed the US in 1917 with America fighting on the Allied side. The US needed almost a full year to prepare for battle, with millions of American men drafted into service. The "roaring twenties" was a significant time period for big business owners and the wealthy. Profits soared and investors began buying on the margin. However, this all came to a crashing halt with the Great Depression of 1929.

In reality, the US did not fully recover from the Depression until the outbreak of World War II. The US was drawn into fighting a two front war, but focused much of its attention on Europe before looking towards the Western threat of Japan. Both fronts were conquered in 1945 and the world sought to embark on a period of tranquility.

However, a "cold war" ensued between the massive powers of the Soviet Union and the United States. Facing different political and economic ideologies, these two countries did not seem fit for plural domination. This period reached a climax in October 1962, with the establishment of Soviet missiles in Cuba (a mere 90 miles of the US coast). Fortunately, this did not lead to severe military action. The two countries instead began a "space race" as a superiority and propaganda battle.

During the late 1960s and early 1970s, the US sent troops to aid the South Vietnamese against an invasion by the Communist North Vietnamese. The US nation was extremely divided about the participation in a war seemingly so distant. The US withdrew forces in 1973, ending a political quagmire.

In periods during the 1970s and early 1980s, economic growth was placed on hold as the price of crude oil soared. Stagflation occurred as inflation reached double digits and GDP fell. President Reagan exacerbated the US deficit problem by increasing government spending, but reducing taxes.

As an aggressive predecessor, President George Bush vowed a continuation of Reagan's policies in foreign affairs. His major military action was the Persian Gulf War. Despite a quick and decisive US victory, Bush's inability to institute a program for economic recovery made him vulnerable in the 1992 presidential election to the Democratic nominee, Arkansas governor Bill Clinton.

The economy gradually improved during Clinton's first year in office, and this, along with a tax increase and spending cuts, caused some easing of the budget deficit. The 2000 presidential election, in which the American public generally appeared uninspired by the either major-party candidate, was won by George W. Bush. However, the politics and concerns of the first eight months of 2001 abruptly became secondary on Sept. 11, when terrorists hijacked four planes, crashing two into the World Trade Center , which was destroyed, and one into the Pentagon.

In October, air strikes and then ground raids were launched against Afghanistan by the United States, with British aid. The United States also provided support for opposition forces in Afghanistan, and by December the Taliban government had been ousted and its and Al Qaeda's fighters largely had been routed.

During 2002 the Bush administration became increasingly concerned by the alleged Iraqi development and possession of weapons of mass destruction, and was more forceful in its denunciations of Iraq for resisting UN arms inspections.

Despite vocal opposition to military action from many nations, including sometimes rancorous objections from France, Germany, and Russia, the United States and Great Britain pressed forward in early 2003 with military preparations in areas near Iraq. After failing to win the explicit UN Security Council approval desired by Britain, President Bush issued an ultimatum to Iraqi president Saddam Hussein on March 17th, and two days later the war began with an airstrike against Hussein and the Iraqi leadership. Ground forces invaded and by mid-April the allies were largely in control of the major Iraqi cities. No weapons of mass destruction, however, were found by allied forces during the months after the war, and sporadic guerrilla attacks on the occupying forces occurred during the same time period, mainly in Sunni-dominated central Iraq.

The economy improved in the latter half of the 2003. Although the unemployment rate inched below 6% and job growth was modest, overall economic growth was robust, particularly in the last quarter.

Sources:
CIA World Factbook (September 2009)
U.S. Dept. of State Country Background Notes (October 2008)