Introduction to The US Economy

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 The American economy, one of the biggest and most impactful globally, is a complex and dynamic system that influences worldwide markets and establishes economic patterns. The United States has a diverse and technologically advanced economy with a GDP that is over $25 trillion, marked by a strong industrial base, innovative technology, and a large service sector.


 
 
 
 How did THE USA become so wealthy and can INDIA ever match that?
 
 
 The United States secures a position of one of the wealthiest countries in the world through a combination of factors, including strategic real estate development and the market value of domestic companies. 
 The United States (GSLI rank 8) is using its innovation focus to upskill its talent. More than a third of US companies are already investing in training programs to improve workforce availability. Government initiatives such as the National Artificial Intelligence Initiative Act are helping the economy bring more investments into AI development while creating a more skilled workforce. The government also plans to invest about $20 billion in digital skills training, and many companies are investing in their employees’ digital skills. Advanced digital skills are expected to raise the country’s GDP by about $1.1 trillion a year.4 Educational institutions are also playing a role by offering more AI and emerging tech courses. Since 2011, there has been a 120 percent annual increase in AI-related bachelor’s degrees, with more than 140,000 earned in 2021.

 
 Contrasting Population Culture: Living style in India and America and Its effects on Real Estate and Economy.
 

 
 The cultural norms surrounding living independently from parents differ significantly between India and the United States. These differences have prominent impacts on the real estate markets and economies of both countries.

 
 1. Cultural Norms and living style
 
 United States:
 
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 <li style="color:black;"> People in the USA are willing to move out of their parents' houses for educational purposes or work, typically at the age of 18 when they become adults.
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 <li style="color:black;"> Living alone leads to individualism and self-reliance.
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 <li style="color:black;">Students and people who are employed live alone or with roommates, and later on, they purchase their own property when they plan to get married or build long-term partnerships for business.
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 India:
 
 
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 <li style="color:black;"> India follows a culture where they feel the need to live together with family under one roof to assist them financially as well as physically. The cultural values are formed that force on family cohesion and support.
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 <li style="color:black;">Many young adults keep on living with their parents until they marry, and even after that, newlyweds might live with one set of parents like mother/father or grandparents.
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 <li style="color:black;">This living arrangement is considered as beneficial for emotional support, economic savings, and caring for elderly family members at their old age.</li>
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 2. Influence on Real Estate Markets
 
 
 United States:
 

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 <li style="color:black;">High Demand for Housing: The cultural norm of moving out early creates a higher demand for housing. People at a young age need rental apartments for their own space and privacy and as they get old, they plan to buy homes and property.
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 <li style="color:black;">Rental Market: There is a robust rental market that serves students and young professionals and those who are on the path of bringing change in phases of life.
 <li>Growth of urban areas: individuals and families are in the need of more space to pursue the independent living style as a result of which Urban areas sees growth.

 <li style="color:black;">Ownership: having the wish for owning a home grows demand in the real estate market, it contributes to uninterrupted development of residential properties.
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 India:
 
 
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 <li style="color:black;">Low Demand for Individual House property: The preference for extended family living reduces the per capita demand for separate housing units.
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 <li style="color:black;">Joint Family Homes: There is a higher demand for larger homes that can accommodate multiple generations, particularly in urban areas.


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 <li style="color:black;"> Slow Urban Sprawl: The likelihood for families to live together can slow the rate of urban sprawl compared to countries where nuclear families are the norm.
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 <li style="color:black;">Emerging Trends: As India modernizes, there is a growing trend among young professionals to live independently, especially in urban areas. This is beginning to increase the demand for smaller apartments and rental housing.
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 3. Economic Impacts

 
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 <li style="color:black;">Real Estate Industry: The high demand for housing fuels a robust real estate industry, contributing significantly to GDP and employment.
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 <li style="color:black;">Spending: Young people are inclined to high spendings on household goods, furniture, and utilities.
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 <li style="color:black;">Housing Market Cycles: The dynamic housing market is subjected to cycles of boom and bust, influenced by economic conditions, interest rates, and demographic trends.

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 India

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 <li style="color:black;">Cost Savings: Families who live together result in cost savings, because all the expenses like electricity bills, food, housing and other utilities are divided among more people.


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 <li style="color:black;">Real Estate Development: The real estate development is affected due to the reason of slow growth in demand for individual housing units.
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 <li style="color:black;">Change in Patterns: most of the young Indians desire for self-reliance. This desire can lead to growth in the rental market and the establishment of housing units with smaller size. This might brace economic activity in urban areas.
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 The global acceptance of US Dollar Compared to the Indian Rupee.
 
 
 The Indian rupee (INR) and the US dollar (USD) play different roles in the global economy. While the US dollar is widely accepted as it is the global federal reserve currency, the Indian rupee does not have the same level of acceptance by nations. This inequality originated from several economic, historical, and geopolitical factors.
 
 US Dollar
 
 
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 Currency status: The US dollar is known as the global federal reserve currency. Around 60% of global foreign exchange reserves are in the form of US dollars in the hands of central banks and other financial institutions.

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 <li style="color:black;">Global Trade: for import and export business, the dollar is the commonly used currency by many countries
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 <li style="color:black;">Stability: the US economy gives strength to its country currency which makes it stable and a preferred choice for international transactions and savings.
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 <li style="color:black;">Economic Influence: The economy of the United States is wide-reaching, possessing a GDP of over $23 trillion. This increases the global demand for the dollar.
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 <li style="color:black;">Political Stability: The country's legal and financial institutions are strong and reliable, which boosts confidence in the dollar. The US political system is considered stable even after the challenges.
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 Indian Rupee
 

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 <li style="color:black;"> Use: To trade within domestic boundaries and few surrounding nations, INR is confined. It is not a reserve currency which makes it unpreferred for international trading.
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 <listyle="color:black;">Controls: for the conversion of INR to any other currency, India has rigid directives which limits its use globally and it impacts on international trading.</li>
 <li style="color:black;">Emerging Market: India, while being one of the fastest-growing major economies, is still considered an emerging market with a GDP of around $3.5 </li>

 <li style="color:black;">Economic Volatility: Inflation, rigid regulation system, fiscal policies and certainties disturbs the equilibrium and stability of the rupee and makes it less appealing for international use.
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 To conclude
 
 
 India and America are two different countries with various stages of development, as well as different opportunities and difficulties. Each of the two economies has its own advantages: India's expanding customer base and demographic dividend, and the United States' innovation and capital markets. 
 Both countries are democracies, but their political systems run differently. India's economy is growing at a fast pace but still not fully developed.It has a huge workforce and is becoming a major player in tech and services. India is known for its IT sector and growing manufacturing. But it still has widespread poverty, infrastructure needs, and a large informal economy. 
 The United States struggles to maintain its competitive advantage and wealth inequality. India faces difficulties in reducing poverty, developing its infrastructure, and other areas.While India concentrates on maintaining strong development and lowering poverty, the US is indulged with keeping its position as the world's leading nation.They look for new opportunities in the international market for collaboration and rivalry.

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