The American Economy is very hard to define or delve into its' real parts. The Economy today is full of gobbledygook and all kinds of problems.
There is really a public and private sector. But within each sector there are all kinds of other sectors. But before I go on any further let me define what an economic sector is. A sector as defined in the Oxford American Dictionary as follows - "A sector is a distinct part or branch of a nation's economy or society or sphere of society such as education: the industrial and commercial sectors."
This can be divided into almost thirteen or more different types of sector within each type of main sector. These subdivisions are further subdivided into 25 or more divisions or sub-sub sectors. Within each part such as a school they have their own sector within each school in our country. The school sector then extends into the community surrounding it. Surrounding each school, there is a recreational or entertainment sector. This sector is surrounded with markets that support the school such as book stores and restaurants for the students to use and eat at.
After someone leaves school, he or she enters into another part of the Economy or new economic markets. The person finishes his/her education and writes his /her resume. He/she then gets a job, buys a home, establishes credit and acquires assets. These assets are bought from a company which sells the products on the open market in which the proprietor buys the products that this store sells from the products manufacturer. The home owner sometimes likes to sell his house to gain more equity. So he puts the house up for sale via a licensed realtor. The Realtor sells the house and then the house goes through escrow. By doing this, the buyer of the house builds up equity, credit and his purchasing power increases. This money and assets he gets, he must pay taxes to the government both State and Federal.
This money that he pays in taxes goes into the Federal Treasury for spending on Governmental Programs in the Federal Government. The taxes are used to pay the employees of the Government and various other programs in the budget. The process for use of taxes and revenues is the same in the State Government Other programs that the taxes are used for our Health, Welfare, Education, Research and Law Enforcement. These monies flow into and of the Treasuries of all the States and the Federal Government.
There are many types of taxes Personal Income, Personal Business, Corporate, Taxes on stores of Stocks, and many others.
The production of economic goods is done in the Employment sector which at times is confused is confused with the Manufacturing Sector that is Private, Public, National and International. Products/Economic Goods are brought into the country and sold at what should be set prices. These prices very from State to State and from area markets to other area economic markets. These goods run from household goods to groceries and many other commodities.
Another form of economic market which leads to input into the Gross National Product are those that are in National Products not International Products. National Products are those that are sold strictly in National Markets not Foreign Markets. The international Products such as wine, beer, tobacco and other products that are sold as economic goods to the Vietnamese and other foreigners in the country. These products and markets very from State to State and town to town. This also depends upon the types of people and national origins of the people living within the products market area.
Some goods or services that America has are sent to the other countries for sale or to establish a service that is American in a foreign country. These goods are manufactured stateside and sent to foreign distribution centers for sale in International Markets. These goods are sold at the face value of the product in the value of the currency of the particular country. The duties derived from the sale of the goods are put back into the foreign bank accounts of the American Company selling the goods. This situation varies from country to country. Some Companies do not have freeing Corporate Offices or foreign bank accounts. Ideally these companies should pay a tax on the assessed and estimated value of the gross sales of sales of each product. These products could be paid for in advance as they reach the Distribution Center of each foreign company. The taxes that they pay are US Taxes based on foreign capital/money that are further based upon te exact amount of tax revenue or monetary income procured n each product sold. Thee tax revenues should be sent back to the American Corporate Office for inclusion in Corporate Tax Returns and Corporate Income Statements. These taxes are not amounts based on stateside sales of the products but should be combined and listed as total Revenue and not Net income. A percentage of this amount is/or should be listed on IRS Tax Returns and should be reverted to US Treasury annually.
Import on the other hand is to bring capital/goods into another country for sale in that country. Such countries that import goods into America are China, Thailand, Bangkok, Formosa and Korea along with thirty or more countries that this Writer cannot recall. These goods range in type from Groceries, Wine, and clothing to TV's, Radios and many major appliances. These goods when they arrive in America most likely put up for sale on many American Markets through Distribution Centers in Big Cities. These goods that are sold to American stores are usually sold at a price lower than most American products of the same kind but with different names. These products sell in large volumes and a greater amount of sales are derived versus the sales of American Products in the same economic markets. These products when sold are sold in US Currency. But does America pay the foreign countries for the Taxes on the foreign countries goods the taxes sold in America? These taxes as I understand are paid back annually to the Treasury and a percentage of these revenues should be sent back to the country that is bringing the goods into America. These taxes sent back to the foreign countries may/could also be used by America to buy more goods/Foreign Bonds from such countries.
The tax revenues from each import and export should bring a profit of at least 25% above normal for an average year. These investments of Tax Revenues by America by America from the sale of foreign goods in America could be used to invest in America's Defenses such as foreign military installations and other Strategic Defenses in foreign countries. This would increase America's might in some of the difficult areas for America to deal with.
In closing, this has been a definitive view of America's Economy and of its structure and function both nationally and internationally.
Qualifications: For many years, I have read books, newspapers and other media on Economics, Management and Finance. Some books I've read specifically are "The Wealth of Nations" and "Corporate Management." This paper was written to show my ability to write on topics that are beyond my purported Academic level.