2005 Year in Review

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The World according to the CIA

In my continued quest to see where Americans fit into the global scheme of things I thought I might just try the CIA (Central Intelligence Agency – of the US government). Actually it isn’t difficult at all. You just get on the web and look for “The CIA World Factbook” and you have access to all the information they’ve collected and analyzed for this country and every country in the world. It is pretty neat. The first classified Factbook was published in Aug. 1962, the first unclassified version was published in June 1971 and the first available to the public was the 1975 Factbook.

The USA is the third largest country in the world behind Russia and Canada and has the third largest population behind China and India. We also have the largest and most technologically advanced economy rated by gross domestic product of any nation in the world. We have a market-oriented economy which means our government goes to the market place to buy most of the needed services and materials and our business community has considerable autonomy. Compared to other countries, business (big and small) runs the USA. Still some interesting facts come out in the statistical comparisons.

The infant mortality rate (deaths per 1000 live births) is considered a good indicator of health in a country. The US has a rate of 6.63 which is not too bad, but ranks us as #42 out of reporting countries. Cuba, a very poor country, has a rate of 6.45 and leading the list are Sweden at 2.77 and Singapore at 2.28. We have the most expensive and technologically advanced health care system in the world, so what is happening? The Factbook says our economy grows, but a two tier labor market has developed and the lower tier does not enjoy the same level of pay or benefits as the top tier.

We lead the world in exports although we lag behind the European Union and we lead the world in imports as well. We also lead the world in external debt (public and private debt owed to non-residents) which basically means our balance of trade is not good. According to the Factbook this and budget deficit spending are serious issues. We export capital goods, automobiles, industrial supplies and raw materials, consumer goods and agricultural products. We import crude oil and refined petroleum products, machinery, automobiles, consumer goods, industrial raw materials, and food and beverages. Since we use more energy than we can produce in this country it makes sense that our balance of trade is not equal, but I wonder how we are a leading exporter of agricultural products and a leading importer of food and beverage?

The US leads the world in total military expenditures – about 6 times the nearest country China. However we are only #37 on the list as a percentage of Gross Domestic Product at 3.3% which is a far cry from #1 and totally impoverished North Korea which spends 22.9% of their GDP on the military.

Contributors to our GDP by industry are agriculture 1.4%, industry 26.2%, and services 72.5%. Lawyers, doctors, teachers, waiters, retail workers and the like provide the vast majority of wealth to our nation, far and above industry and agriculture. Of course the poorer the nation the more agriculture contributes to the GDP. I couldn’t find a ranking, but Saudi Arabia GDP by industry is agriculture 4.7%, industry 58.8% and services 36.5% whereas Brazil was agriculture 10.2%, industry 38.7% and services 51.2%. Japan and most European countries have similar sector breakdowns to ours which I suppose is the definition of a “developed” country.

It makes you wonder when the CIA World Factbook says our long-term problems include: inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. How does cutting taxes, attacking countries to promote freedom, and restricting gay rights and abortion (promoting family values) help?

by Marc Adami, Guest Columnist
January 21, 2005

 

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