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U.S. Economy and Business

Introduction


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"The events of 2002 brought new challenges for the U.S. economy and for America’s economic policy. Efforts to strengthen homeland security and prosecute the war against terrorism placed new demands on the economy. The recovery from the 2000-01 economic slowdown continued, but with an unsatisfactory pace of job creation. These developments make it all the more important to undertake policies that promote growth, both in the United States and in the global economy.

Reliance on markets is key to enhancing growth. Thanks to the flexibility of markets, consumers, businesses, workers, and investors can continuously adapt to changing economic circumstances. The market constantly reshapes and redirects economic activity and economic output in response to changes in producers’ supplies and costs and in consumers’ incomes, demands, and the prices they face. In turn, the market itself evolves, as new information, new technologies, altered supplies, and other changes in the economic and physical environments pose new problems and open up new opportunities. Put simply, markets are dynamic."

From the Economic Report of the President (pdf) February 2003

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