Editing Economy of the United States (section)

===21st century===
{{Further|Great Recession}}
[[File:Donald Trump and Mike Pence meet with automobile industry leaders.jpg|thumb|President [[Donald Trump]] with [[Automotive industry in the United States|automobile industry]] leaders, 2017 (First Term)]]
The United States economy experienced a recession in 2001 with an unusually slow jobs recovery, with the number of jobs not regaining the February 2001 level until January 2005.<ref name="Payems" /> This "jobless recovery" overlapped with the building of a [[United States housing bubble|housing bubble]] and arguably a wider debt bubble, as the ratio of household debt to GDP rose from a record level of 70% in Q1 2001 to 99% in Q1 2008. Homeowners were borrowing against their bubble-priced homes to fuel consumption, driving up their debt levels while providing an unsustainable boost to GDP. When housing prices began falling in 2006, the value of securities backed by mortgages fell dramatically, causing the equivalent of a [[bank run]] in the essentially unregulated [[shadow banking|non-depository]] banking system, which had outgrown the traditional, regulated depository banking system. Many mortgage companies and other non-depository banks (e.g., investment banks) faced a worsening crisis in 2007–2008, with the [[Subprime mortgage crisis|banking crisis]] peaking in September 2008, with the bankruptcy of [[Lehman Brothers]] and bailouts of several other financial institutions.<ref name="FCIC_1">{{cite web |url = http://fcic.law.stanford.edu/report/conclusions |title = Financial Crisis Inquiry Report-Conclusions-January 2011 |publisher = Fcic.law.stanford.edu |date=March 10, 2011 |access-date=April 22, 2013}}</ref>

The Bush administration (2001–2009) and Obama administrations (2009–2017) applied banking [[Troubled Asset Relief Program|bailout programs]] and Keynesian [[American Reinvestment and Recovery Act|stimulus]] via high government deficits, while the Federal Reserve maintained near-zero interest rates. These measures helped the economy recover, as households paid down debts in 2009–2012, the only years since 1947 where this occurred,<ref>{{cite web| url = https://fred.stlouisfed.org/graph/?graph_id=111185| title = FRED – Household Debt Changes| date = October 1945}}</ref> presenting a significant barrier to recovery.<ref name="FCIC_1" /> Real GDP regained its pre-crisis (late 2007) peak by 2011,<ref name="FRED – Real GDP">{{Cite web|url=https://fred.stlouisfed.org/series/GDPC1|title=Real Gross Domestic Product|date=November 27, 2024|website=fred.stlouisfed.org}}</ref> household net worth by Q2 2012,<ref name="FRED – Household Net Worth">{{Cite web|url=https://fred.stlouisfed.org/series/TNWBSHNO|title=Households and Nonprofit Organizations; Net Worth, Level|date=September 12, 2024|website=fred.stlouisfed.org}}</ref> non-farm payroll jobs by May 2014,<ref name="Payems">{{cite web| url = https://fred.stlouisfed.org/series/PAYEMS| title = FRED – Total Non-Farm Payrolls| date = January 1939}}</ref> and the unemployment rate by September 2015.<ref>{{cite web| url = https://fred.stlouisfed.org/series/UNRATE| title = FRED – Civilian Unemployment Rate| date = January 1948}}</ref> 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.<ref name="nyt2018">[https://www.nytimes.com/2018/03/20/business/economy/economy-recovery.html ''The New York Times''. Casselbaum. "Up, Up, Up Goes the Economy" March 20, 2018].</ref>

The [[Great Recession]] occurred during the [[2008 financial crisis]], when GDP fell by 5.0% from the spring of 2008 to the spring of 2009. Other significant recessions took place in 1957–1958, when GDP fell 3.7% following the [[1973 oil crisis]], with a 3.1% fall from late 1973 to early 1975, and in the 1981–1982 recession, when GDP dropped by 2.9%.<ref name=gcn>{{cite web |url=http://www.globalcrisisnews.com/usa/us-out-of-recession-as-economy-grows-by-3-5-percent/id=1238/|archive-url=https://web.archive.org/web/20091103100949/http://www.globalcrisisnews.com/usa/us-out-of-recession-as-economy-grows-by-3-5-percent/id%3D1238/|title=Global Crisis News|publisher=GCN|date=October 30, 2009|archive-date=November 3, 2009|url-status=dead}}</ref><ref name="cnn1">{{cite web |url=http://edition.cnn.com/2008/BUSINESS/03/21/us.recession.ap/index.html |title=Worries grow of deeper U.S. recession |publisher=CNN|access-date=November 17, 2008 |archive-url = https://web.archive.org/web/20080611130336/http://edition.cnn.com/2008/BUSINESS/03/21/us.recession.ap/index.html |archive-date=June 11, 2008}}</ref> Recent, mild recessions have included the 1990–1991 downturn, when output fell by 1.3%, and the 2001 recession, in which GDP slid by 0.3%; the 2001 downturn lasted just eight months.<ref name="cnn1" /> The most vigorous, sustained periods of growth, on the other hand, took place from early 1961 to mid-1969, with an expansion of 53% (5.1% a year), from mid-1991 to late 2000, at 43% (3.8% a year), and from late 1982 to mid-1990, at 37% (4% a year).<ref name=gcn />

Debt held by the public, a measure of national debt, has risen throughout the 21st century. Rising from 31% in 2000 to 52% in 2009, and reaching 77% of GDP in 2017, the U.S. ranked 43rd highest in debt out of 207 countries.<ref>{{cite web| url = https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html#us| archive-url = https://web.archive.org/web/20070613005546/https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html#us| url-status = dead| archive-date = June 13, 2007| title = CIA World Factbook – Debt to GDP}}</ref>

====COVID-19 pandemic====
{{main|Economic impact of the COVID-19 pandemic in the United States}}
{{Update section|date=October 2021}}
In the first two quarters of 2020 amid [[Donald Trump]]'s presidency,<ref name="CNBC_Q3">{{cite news |last1=Pound |first1=Jesse |title=Fed's Bullard says the recession is over but rates will 'stay low for a long time' |url=https://www.cnbc.com/2020/08/28/feds-bullard-says-the-recession-is-over-but-rates-will-stay-low-for-a-long-time.html |access-date=September 4, 2020 |work=CNBC |date=August 28, 2020}}</ref> the U.S. economy suffered major setbacks beginning in March 2020, due to the [[COVID-19 pandemic|novel coronavirus]] and having to "shut-down" major sectors of the American economy.<ref>President Trump's statements to reporters gathered at [[Joint Base Andrews]] on 5{{spaces}}May 2020, before his departure en route to Phoenix, Arizona, {{YouTube|DYZNpBhBkws|President Donald J. Trump departs from Joint Base Andrews en route to Phoenix}}, May 5, 2020, minutes 10:06–10:14.</ref> As of March 2020, US exports of automobiles and industrial machines had plummeted as a result of the worldwide pandemic.<ref>{{cite news|last=Wiseman|first=Paul|date=May 5, 2020|title=US trade gap rises to $44.4 billion as virus slams commerce|language=en|work=AP News|url=https://apnews.com/us-trade-gap-rises-to-44-4-billlion-as-virus-slams-commerce-34a60dd5d102fcb6c6b2313cb17ce27a|access-date=February 10, 2025}}</ref> Social distancing measures which took effect in March 2020, and which negatively impacted the demand for goods and services, resulted in the US [[GDP]] declining at a [[Trade-to-GDP ratio|4.8% annualized rate]] in the first quarter, the steepest pace of contraction in output since the fourth quarter of 2008.<ref>{{cite news|last=Mutikani|first=Lucia|date=May 5, 2020|title=U.S. trade deficit widens, services sector contracts amid coronavirus|language=en|work=Reuters|url=https://www.reuters.com/article/economy/us-trade-deficit-widens-services-sector-contracts-amid-coronavirus-idUSKBN22H2AZ/|access-date=February 5, 2025}}</ref> US retails sales dropped a record 8.7% in March alone. The US airline industry had also been hit hard, seeing a sharp decline in its revenues.<ref>{{cite news |last1=Shepardson |first1=David |last2=Rucinski |first2=Tracy |date=May 6, 2020 |title=Exclusive: U.S. airlines burn through $10 billion a month as traffic plummets |language=en |work=Reuters |url=https://www.reuters.com/article/world/exclusive-us-airlines-burn-through-10-billion-a-month-as-traffic-plummets-idUSKBN22I06H/}}</ref> The [[COVID-19 recession]] has been widely described as the most severe global economic downturn since the [[Great Depression]] and "far worse" than the [[Great Recession]].<ref>{{cite web |url=https://www.bloombergquint.com/business/global-great-lockdown-will-dwarf-the-great-recession |title=The Great Recession Was Bad. The 'Great Lockdown' Is Worse. |website=BloombergQuint |date=April 14, 2020 |access-date=April 15, 2020}}</ref><ref>{{cite web |url=https://www.nysscpa.org/news/publications/the-trusted-professional/article/imf-says-%27great-lockdown%27-worst-recession-since-depression-far-worse-than-last-crisis-041420 |title=IMF Says 'Great Lockdown' Worst Recession Since Depression, Far Worse Than Last Crisis |website=nysscpa.org |access-date=April 15, 2020}}</ref><ref>{{cite web|author=Ben Winck |url=https://www.businessinsider.com/imf-economic-outlook-great-lockdown-worst-recession-century-coronavirus-pandemic-2020-4 |title=IMF economic outlook: 'Great Lockdown' will be worst recession in century |publisher=Business Insider |date=April 14, 2020 |access-date=April 27, 2020}}</ref><ref>{{cite web|editor=Larry Elliott Economics |url=https://www.theguardian.com/business/2020/apr/14/great-lockdown-coronavirus-to-rival-great-depression-with-3-hit-to-global-economy-says-imf |title='Great Lockdown' to rival Great Depression with 3% hit to global economy, says IMF &#124; Business |work=The Guardian |date=April 14, 2020 |access-date=April 27, 2020}}</ref>

[[File:West side of Manhattan from Hudson Commons (95103p).jpg|thumb|right|250px|[[Midtown Manhattan]], the world's largest [[central business district]]<ref>{{cite news |url=https://www.reuters.com/business/new-york-widens-lead-over-london-top-finance-centres-index-2022-03-24/ |title=New York widens lead over London in top finance centres index |work=Reuters |date= March 24, 2022|access-date=June 25, 2022|last1= Jones|first1= Huw}}</ref>]]
In May 2020, [[CNN]] gave an analysis based on unemployment data that the US economy was perhaps the worst that it had been since the 1930s.<ref>{{cite news|last=Collinson|first=Stephen|date=May 7, 2020|title=Trump economy faces long-term disaster as jobs data looms|language=en|publisher=CNN|url=https://edition.cnn.com/2020/05/07/politics/donald-trump-coronavirus-economy/index.html}}</ref> By May 8, the US had reached a record 14.7 percent unemployment, with 20.5 million jobs lost in April.<ref>{{cite news|last=Ross|first=Jamie|date=May 8, 2020|title=Trump's Live Reaction to Record Unemployment: Don't Blame Me|language=en|publisher=[[Yahoo! News|Yahoo Business]]|url=https://www.yahoo.com/news/trump-live-reaction-record-unemployment-133210016.html}}</ref> The Chairman of the [[US Federal Reserve]], [[Jerome Powell]], warned that it may take "an extended time" before the US economy fully recovers from weak economic growth, due to the pandemic, and that in the foreseeable future the US can expect "low productivity growth and stagnant incomes".<ref>{{cite news|last1=Schneider|first1=Howard|last2=Saphir|first2=Ann|date=May 13, 2020|title=In nod to grim U.S. outlook, Fed's Powell calls for more fiscal support|language=en|publisher=Reuters|url=https://www.reuters.com/article/us-usa-fed-powell/in-nod-to-grim-us-outlook-feds-powell-calls-for-more-fiscal-support-idUSKBN22P1FG}}</ref> By May 31, 2020, more than forty million Americans had filed for unemployment benefits.<ref>{{cite news|last=Fottrell|first=Quentin|date=May 31, 2020|title=Over 40 million people filed for unemployment since March – $1,200 stimulus checks are a mere Band-Aid for Americans|language=en|publisher=[[MarketWatch]] (for Yahoo! Finance)|url=https://www.marketwatch.com/story/heres-how-much-trouble-laid-off-americans-are-in-and-why-1200-stimulus-checks-are-only-a-band-aid-2020-05-19?siteid=yhoof2&yptr=yahoo,}}</ref>

By June 2020, the slump in US continental flights due to the coronavirus pandemic had resulted in the US government temporarily halting service of fifteen US airlines to 75 domestic airports.<ref>{{cite news|last=Shepardson|first=David|date=June 4, 2020|title=U.S. airlines gain final approval to drop services to 75 domestic airports|language=en|publisher=Reuters|url=https://www.yahoo.com/news/u-finalizes-order-allowing-15-035146552.html}}</ref> ''[[The New York Times]]'' reported on June 10, 2020, that "the United States budget deficit grew to a record $1.88{{spaces}}trillion for the first eight months of this [[fiscal year]]."<ref>{{cite news|date=June 10, 2020|title=Fed Expects Unemployment Rate to Stay High: Live Updates|language=en|work=[[The New York Times]]|url=https://www.nytimes.com/2020/06/10/business/stock-market-today-coronavirus.html}}</ref>

The US economy recovered from the COVID-19 pandemic in 2021, growing by 5.7%, which was its best performance since [[Ronald Reagan]]'s presidency (1981–1989).<ref>{{cite web|title=US economy grew 5.7% in 2021 in rebound from 2020 recession|url=https://abcnews.go.com/US/wireStory/us-economy-grew-57-2021-rebound-2020-recession-82507751|access-date=January 28, 2022|website=ABC News|language=en}}</ref>

2021–2022 marked a historical [[2021–2022 inflation surge|inflation surge]] in the United States, with the [[Consumer Price Index]] inflation rate hitting 9.1% higher in June 2022 than June 2021, constituting a 41-year high inflation rate with critics blaming the [[Federal Reserve]] among other factors.<ref>{{cite web|title=Inflation Hits 9.1 Percent, Highest Level in 41 Years|url=https://reason.com/2022/07/13/inflation-hits-9-1-percent-highest-level-in-41-years/|date=July 13, 2022}}</ref> Inflation rate reached 4.9% in April 2023, which was roughly 3% above the Federal Reserve's 2% target rate.<ref>{{cite news |last1=Aratani |first1=Lauren |title=US jobs market remains strong despite high interest rates and debt ceiling fight |url=https://www.theguardian.com/business/2023/jun/02/us-jobs-report-may-unemployment-rate |agency=The Guardian |date=2023}}</ref>

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