• Total prison population: 2.08m prisoners
• Crime trend: Up 2% in 2001

Crime rates

Violent crime – especially murder – is much more common than in other developed countries, even in relatively well-off areas. However, the murder rate has fallen, and by 2001 was at its lowest for over 30 years. Mass shootings have made gun control a major issue, but a powerful lobby opposes restrictions, basing its arguments on the constitution and the defense of individual liberties.

Imprisonment for narcotics crimes in the US is much more widespread than in most Western countries. Capital punishment has increased since the 1980s, especially in the south. Texas carries out most executions. There are around two million people in prison in the US, almost a quarter of the world total.

• Annual defense budget: $330bn

US ARMED FORCES

• Army: 7620 main battle tanks (Abrams M-1) (485,000 personnel)
• Navy: 70 submarines, 12 carriers, 27 cruisers, 49 destroyers, 30 frigates, 21 patrol boats (400,000 personnel)
• Air force: 3716 combat aircraft (B-52H, B-1B, F-4, F-15, F-16, F-111, F-117, OA-10A) (367,600 personnel)
• Nuclear capability: 432 SLBM in 18 SSBN, 550 ICBM

Even before the 9/11 attacks, emphasis in defense policy had been shifting away from strategic nuclear deterrence and large warships to "smart" missile systems and long-range power projection, with rapid intervention capabilities built around air power. Despite setbacks in tests, the first "interceptor" missiles of the national missile defense "shield" system were scheduled for deployment in late 2005.

The enormous US military–industrial complex dates only from the close of World War II. In the 1990s, the end of the Cold War and the need to cut the budget deficit combined to slash defense funds to their lowest level in real terms since 1945. Nuclear weapons tests were superseded by "virtual" tests after the creation of the powerful ASCI White computer.

However, the Bush administration has steadily increased spending. The 2004 budget saw a return to Cold War levels, passing $400 billion – more than the combined defense budgets of the world's next 12 largest military spenders. The government also hinted that it was considering developing small and "precision" nuclear weapons as part of its expanding arsenal. Minor cutbacks were announced in 2005, to reduce spending by $50 billion between 2006 and 2011.

Fearing that its troops could be prosecuted for political reasons, the US opposed the establishment of the International Criminal Court. This stance threatens to undermine overseas peacekeeping missions, and has led to cuts in military aid to countries which have not agreed to protect US soldiers from prosecution.

• Gross National Product (GNP): $10,207bn

Score card

• World GNP ranking: 1st
• GNP per capita: $35,400
• Balance of payments: –$531bn
• Inflation: 2.3%
• Unemployment: 6%

Exports

Imports

Economic performance indicator

Strengths

World's largest economy. Wealth of natural resources: energy, raw materials, and food. Strong high-tech base; world-leading research and development. Global leader in computer software. World-class multinationals. Sophisticated service sector; advanced and competitive manufacturing industry. Entrepreneurial business ethic. High-quality postgraduate education, especially in high-tech business. Global dominance of US culture major boost to US manufacturers. Subsidized crops and favorable tariffs for domestic industries.

Weaknesses

Dramatic fall in manufacturing employment as jobs lost to lower-wage economies. Competition from Asia and EU in leading-edge technologies. Volatile market values driven by speculation. Accusations of short-termism. Recent major corporate collapses. Increase in imports despite relatively weak dollar: competition from euro as global currency. Record budget deficit.

Profile

In 2001 a record nine-year boom came to an end. The downturn greatly affected big business. The collapse of WorldCom in 2002, the largest ever bankruptcy, threatened confidence in business values, while media-giant AOL Time Warner posted historic losses of $98.7 billion for 2002. Unemployment has increased as companies tighten their budgets, reaching a nine-year high of 6.4% in June 2003.

Recovery efforts have focused on promoting consumer spending, and President Bush touted a $2000 billion package of tax cuts – though, in the event, the cuts were greatly watered down by Congress. Interest rates have been systematically cut and reached just 1% in June 2003, a 45-year low. However, government spending has increased, notably on defense: the war on Iraq in 2003 cost $48 billion. The budget and trade accounts have both fallen into record deficits.