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Not everyone has a job, but the current unemployment rate is pretty low, at about 6%. inflation rates are unbelievably low compared to romanian standards (typically under 2% per year). Differences in standards of living between the US and Romania can be easily evaluated by looking at differences between per capita GDP: about $36,300 for the U.S. vs. about $6,800 for Romania (using comparable prices; by using the actual USD/LEU exchange rate, Romanian GDP per capita is about $2,000).

Understandably, we must write a bit about the U.S. econonmy - the largest economy in the world. There's a direct relationship between an advanced economy and high standards of living. Appropriate Government policies implemented and perfected over tens (if not hundreds) of years have created all the necessary conditions for growth and profitability of businesses. The US economy is indeed a market driven economy, and market forces, not government regulations and restrictions, are the driving force of American companies. One of the key elements of American economic success is the entrepreneurship culture of American people. It's just fascinating to see how everyone and his cousin has a business idea or owns a small company. In fact, the American economy is driven by small businesses, which account for 90% of all US companies. This is a surprising find, since most people see huge industrial conglomerates when thinking of the American economy. Another interesting figure - 70% of American companies are service companies.
Private initiative drives the economy forward, so it must be encouraged and allowed to develop - it's a really simple principle that is still hard to implement in Romania.

Private initiative needs capital, and this leads to the American pattern of savings and investments. Some people believe that the leading cause of American economic superiority is the clever use of venture capital - and they are probably right. In simpler terms: an efficient and ever-growing economy raises standards of living, and puts more money in people's pockets and bank accounts. In turn, people save more and invest in new businesses, either starting their own company or investing in stocks of other companies. Finally, new businesses make more money which in turn leads to further economic growth and the cycle repeats. Consider the fact that 48% of Americans own stocks.
America has the most advanced financial markets in the world, and financial investments have mass appeal. Capital markets play a fundamental role in American economy and are a leading channel for financing businesses. The value of an American (public) firm is the value of its stocks on the New York Stock Exchange or Nasdaq, not its book value presented in financial reports. Thus, the goal of an American corporation is to add value for its shareholders (i.e. increase earnings and stock price). Government policy and authorities help companies achieve this goal, since its aggregated effect leads to economic growth; in Romania, Government policy and authorities restict growth and profitability of companies through high tax rates, an inappropriate legal system, and tens of other clever ways.

There's so much more to be said about the economy. The US spends 264 billion dollars for research each year, in order to maintain its growth patterns. Federal and state authorities invest heavily in infrastructure projects. The quality of higher education is outstanding. Bribing is almost unheard of in government and private relations. All the right ingredients are in place for the creation of wealth - American companies post an average profitability of +5%. Naturally, the system won't work without the contribution of quality human capital. The economy (including the job market) is so competitive, that the work of every person, from janitors to CEO's, is highly productive and professional. This is something you notice in your day-to-day life, not just in stories and reports on TV. Everyone works hard for a decent life.

So is it all fun and games? No, it's not. The past couple of years have hit the economy pretty bad. A lot of people are talking about a recession. The stock market has lost a lot of value since spring 2000; profitability is decreasing and many companies are downsizing. A lot of jobs are being lost. It is increasingly harder to find jobs, or, to be more specific, to find good, well paid jobs. And that's bad for everyone.
What else? A lot of people would be surprised to hear that some American companies use "agressive" accounting practices, or, to put it plainly, cook the books. There have been many scandals, some involving rather large companies, and many top officials have been arrested. The size of US underground economy is estimated at 15% of GDP. Economic problems are universal.

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