Unites States economy still has the world’s largest economy; it has three times the size of the next largest which is Japan. Since the United States is the largest, the United States consumer is also a big drive of global economic activity. In common as in most developed countries, services are the key sector of the economy. Around two thirds of the United States consumers drives the US economy. This consists of the personal consumption although the United States is often referred to as a free market economy. This is not entirely true since there are government regulations protecting certain sectors like energy and agriculture, which can be described as a ‘consumer economy’.

What to produce and how much to produce will depend on the price level fixed by the interaction of supply and demand. American consumers are increasingly dependent on debt and have been re-mortgaging their houses to higher loan amounts and using the extra cash to fund high street purchases mostly funded by central banks and sovereign wealth funds from Asia, Europe and the Middle East. This has caused the recent failure in the US housing and credit markets which have resulted the US recession.

President Barrack Obama and the recent decline of the US economy has fallen into his hands, it’s up to him to make full use of the economic tools such as money supply, tax rates, and credit control, among other things, to adjust the rate of economic growth, it is up to him to ensure the growth and stability of the US especially the question of the growing national debt at the start of 2008.