United States SWOT Analysis

Introduction

Presently, the United States is experiencing an indefinite period in its history, which is characterized by various significant domestic and international issues, including the impending global crisis, social protests, and coronavirus pandemic. In this regard, to bring the state to a new level of economic and social development, a new President needs to develop a valid strategy based on the investigation of current problems and potential solutions. SWOT analysis is a relevant instrument that allows viewing possible development prospects, exploring problematic areas requiring urgent and careful consideration, as well as considering internal and external threats. Thus, this memorandum aims at performing a SWOT analysis of the USA regarding its domestic and international issues, the organizational structure, and the operation of the federal government.

Current Position

The United States of America is a country in North America, the government form of which is a federal republic that consists of 50 states, with the national capital in Washington. The United States is the world’s most enormous economic power, the economy of which is primarily determined by its abundant natural resources, technological development, and high agricultural output. As of 2020, the population of the US is equal to 332,639,102 people, which is the third place in the world, and its territory is 9,833,517 sq. km.¹ The United States is a multinational country that encompasses ethnic groups from around the world, namely, whites (74%), black (12,6%), Asian (4.8%), and other (over 6%).² Regarding its economic characteristics, the total GDP (purchasing power parity) of the US accounts for $22.321 trillion in 2020, while per capita amounts to $67,426.³ In addition, as of 2019, its Human Development Index accounts for 0.920.⁴ Finally, it worth noting that although the United States is relatively economically self-sufficient in many fields, it plays a critical role in global trade due to the vast capacity of its economy.

SWOT Analysis

Strengths

The United States is still a leading market-centered country in the world, the economy of which is distinguished by flexibility, innovation resilience, comparatively low taxes, and temperate regulations for business. At the same time, the US government plays an insignificant but direct role in ruling the business enterprises of the country. Companies are free in terms of hiring and dismissing employees as well as opening or closing a business. In contrast to many other countries and competitors, any innovative product or service can be realized without bureaucratic delays. Moreover, because of its wide demographic variety, favorable taxation system, antitrust laws, and high Human Development Index, the state is an attractive platform for considerable investments. The industry has at its disposal abundant mineral deposits, including copper, uranium, zinc, coal, and gold, while agriculture occupies leading positions in the production of wheat, rice, sugar, tobacco, cotton, and corn. Finally, the US is highly advanced in technological fields, especially in the healthcare, aerospace, military, and computer industries.

Weaknesses

Despite the US’s ability to withstand economic challenges, the US economy developed many prominent drawbacks that cause concern among experts and economists. First, the primary problem that requires careful and urgent attention is rapidly increasing public and domestic debts. In May 2020, the public debt of the US amounted to $25.75 trillion, 115,77 percent of its GDP, which is $3.7 trillion more than a year earlier, when it comprises $22 trillion.⁵ The increasing unemployment rate, which is partly produced by quarantine measures against Coronavirus, also raises alert among American citizens and officials. According to the Bureau of Labor Statistics of the US department of labor (2020), the US unemployment rate has reached 14.7% percent in April 2020, which was the highest since 1939.⁶ In addition, the United States remains an import-dependent state since its trade deficit in 2019 consisted of $616.8 billion.⁷ Furthermore, the gap in income disparity is increasing; the aging population imposes a heavy burden on public health expenditure and pension programs while growing federal budget deficit restricted funding needed for social programs.

Opportunities

First of all, it is worth noting that a robust and reliable political environment promotes business recovery and helps to avert the drop of foreign and domestic investment. Additionally, the leading economic position links the US with European and developing countries, which serves as stimuli for the further development of international scientific, cultural, and economic cooperation, especially trade. Moreover, famous research and educational institutions such as the California Institute of Technology, Iowa State University, and Massachusetts Institute of Technology, among others, open vast and significant opportunities for technological progress. The advanced technological base will, in turn, facilitate the development of energy-saving and efficient systems and green energy, as well as the innovation of new ways of receiving energy. Finally, most of the population is still above the line of poverty, which promotes sufficient citizens’ purchasing power and money turnover.

Threats

The threats for the United States are principally related to both global and national issues. The first problem that demands careful attention is continuing fierce anti-government riots and protests throughout the whole country caused by the murder of a black man, George Floyd, in Minneapolis. Besides, one of the most significant hazards for the state is the Coronavirus pandemic that has already taken the lives of 126,823 people and proceeds to spread.⁸ The Congressional Budget Office forecasts that the cost of this pandemic will comprise $7.9 trillion over the next decade.⁹ China–United States trade war also places an onerous economic and social burden and impairs international cooperation. Moreover, the world economy is experiencing recession and uncertainty; for example, According to Global Economic Prospects, the entire global economy is estimated to reduce 5.2% in 2020.¹⁰ Finally, The US remains the world’s largest consumer of cocaine, marijuana, ecstasy, methamphetamine, which strikes at national interests and threatens the physical and mental health of the nation.

Conclusion

The paper has performed a SWOT analysis of the USA regarding its domestic and international issues, the organizational structure, and the operation of the federal government. In particular, the fast technological development, comparatively low taxes, flexibility of the economy, high Human Development Index, and conducive bureaucratic system and business environment are among the prominent advantages of the US. Regarding weaknesses, the United States has increased public and domestic debts, mounting unemployment rate, import dependency, the gap in income disparity, and the aging population. The opportunities comprise significant technological progress, the enormous potential of international scientific, cultural, and economic cooperation, as well as sufficient citizens’ purchasing power. Finally, threats include the Coronavirus pandemic, continuing anti-government riots, China–United States trade war, the global economic recession, and the trade of drugs. In summary, to promote the growth of the economy, the US government should give the primary priority to addressing issues related to Coronavirus, protests, public debt, and the high unemployment rate.

References

Amadeo, K. (2020). US trade deficit and how it hurts the economy. The Balance.

Duffin, E. (2020). United States – public debt by month 2019/20. Statista.

Lu, J. (2020). World Bank: Recession is the deepest in decades. NPR.

News release. (2020). The Bureau of Labor Statistics of the US department of labor.

North America: United States. (n.d.) Central Intelligence Agency. Web.

Pandemic to cost US economy $7.9 trillion over 10 years. (2020). The New York Times.

Report for selected countries and subjects. International Monetary Fund. Web.

2019 Human Development Index ranking. United Nations Development Programme. Web.

United States. (2020). Worldometers.

Footnotes

1. North America: United States. (n.d.) Central Intelligence Agency.
2. North America: United States. (n.d.) Central Intelligence Agency.
3. Report for selected countries and subjects. International Monetary Fund.
4. 2019 Human Development Index ranking. United Nations Development Programme.
5. Duffin, E. (2020). United States – public debt by month 2019/20. Statista.
6. News release. (2020). The Bureau of Labor Statistics of the US department of labor.
7. Amadeo, K. (2020). US trade deficit and how it hurts the economy. The Balance.
8. United States. (2020). Worldometers.
9. Pandemic to cost US economy $7.9 trillion over 10 years. (2020). The New York Times.
10. Lu, J. (2020). World Bank: Recession is the deepest in decades. NPR.