United States vs. North Korea

Britain's American colonies broke with the mother country in 1776 and were recognized as the new nation of the United States of America following the Treaty of Paris in 1783. During the 19th and 20th centuries, 37 new states were added to the original 13 as the nation expanded across the North American continent and acquired a number of overseas possessions. The two most traumatic experiences in the nation's history were the Civil War (1861-65), in which a northern Union of states defeated a secessionist Confederacy of 11 southern slave states, and the Great Depression of the 1930s, an economic downturn during which about a quarter of the labor force lost its jobs. Buoyed by victories in World Wars I and II and the end of the Cold War in 1991, the US remains the world's most powerful nation state. Since the end of World War II, the economy has achieved relatively steady growth, low unemployment and inflation, and rapid advances in technology.

An independent kingdom for much of its long history, Korea was occupied by Japan beginning in 1905 following the Russo-Japanese War. Five years later, Japan formally annexed the entire peninsula. Following World War II, Korea was split with the northern half coming under Soviet-sponsored communist control. After failing in the Korean War (1950-53) to conquer the US-backed Republic of Korea (ROK) in the southern portion by force, North Korea (DPRK), under its founder President KIM Il Sung, adopted a policy of ostensible diplomatic and economic "self-reliance" as a check against outside influence. The DPRK demonized the US as the ultimate threat to its social system through state-funded propaganda, and molded political, economic, and military policies around the core ideological objective of eventual unification of Korea under Pyongyang's control. KIM Il Sung's son, KIM Jong Il, was officially designated as his father's successor in 1980, assuming a growing political and managerial role until the elder KIM's death in 1994. Under KIM Jong Il's rein, the DPRK continued developing nuclear weapons and ballistic missiles. KIM Jong Un was publicly unveiled as his father's successor in 2010. Following KIM Jong Il's death in 2011, KIM Jong Un quickly assumed power and has since occupied the regime's highest political and military posts. 

After decades of economic mismanagement and resource misallocation, the DPRK since the mid-1990s has faced chronic food shortages and economic stagnation. In recent years, the North's domestic agricultural production has increased, but still falls far short of producing sufficient food to provide for its entire population. The DPRK began to ease restrictions to allow semi-private markets, starting in 2002, but has made few other efforts to meet its goal of improving the overall standard of living. North Korea's history of provocative regional military; proliferation of military-related items; long-range missile development; WMD programs including tests of nuclear devices in 2006, 2009, 2013, 2016, and 2017; and large conventional armed forces are of major concern to the international community and have limited the DPRK's international engagement, particularly economically. In 2013, the DPRK declared a policy of simultaneous development of its nuclear weapons program and economy. In late 2017, KIM Jong Un declared the North's nuclear weapons development complete. In 2018, KIM announced a pivot towards diplomacy, including a re-prioritization of economic development, a pause in missile testing beginning in late 2017, and a refrain from anti-US rhetoric starting in June 2018. Since 2018, KIM has participated in four meetings with Chinese President XI Jinping, three with ROK President MOON Jae-in, and three with US President TRUMP. Since 2019, North Korea has continued developing its ballistic missile program and issued statements condemning the US.

tsunamis; volcanoes; earthquake activity around Pacific Basin; hurricanes along the Atlantic and Gulf of Mexico coasts; tornadoes in the Midwest and Southeast; mud slides in California; forest fires in the west; flooding; permafrost in northern Alaska, a major impediment to development

volcanism: volcanic activity in the Hawaiian Islands, Western Alaska, the Pacific Northwest, and in the Northern Mariana Islands; both Mauna Loa (4,170 m) in Hawaii and Mount Rainier (4,392 m) in Washington have been deemed Decade Volcanoes by the International Association of Volcanology and Chemistry of the Earth's Interior, worthy of study due to their explosive history and close proximity to human populations; Pavlof (2,519 m) is the most active volcano in Alaska's Aleutian Arc and poses a significant threat to air travel since the area constitutes a major flight path between North America and East Asia; St. Helens (2,549 m), famous for the devastating 1980 eruption, remains active today; numerous other historically active volcanoes exist, mostly concentrated in the Aleutian arc and Hawaii; they include: in Alaska: Aniakchak, Augustine, Chiginagak, Fourpeaked, Iliamna, Katmai, Kupreanof, Martin, Novarupta, Redoubt, Spurr, Wrangell, Trident, Ugashik-Peulik, Ukinrek Maars, Veniaminof; in Hawaii: Haleakala, Kilauea, Loihi; in the Northern Mariana Islands: Anatahan; and in the Pacific Northwest: Mount Baker, Mount Hood; see note 2 under "Geography - note"

late spring droughts often followed by severe flooding; occasional typhoons during the early fall

volcanism: Changbaishan (2,744 m) (also known as Baitoushan, Baegdu or P'aektu-san), on the Chinese border, is considered historically active

note 1: world's third-largest country by size (after Russia and Canada) and by population (after China and India); Denali (Mt. McKinley) is the highest point (6,190 m) in North America and Death Valley the lowest point (-86 m) on the continent

note 2: the western coast of the United States and southern coast of Alaska lie along the Ring of Fire, a belt of active volcanoes and earthquake epicenters bordering the Pacific Ocean; up to 90% of the world's earthquakes and some 75% of the world's volcanoes occur within the Ring of Fire

note 3: the Aleutian Islands are a chain of volcanic islands that divide the Bering Sea (north) from the main Pacific Ocean (south); they extend about 1,800 km westward from the Alaskan Peninsula; the archipelago consists of 14 larger islands, 55 smaller islands, and hundreds of islets; there are 41 active volcanoes on the islands, which together form a large northern section of the Ring of Fire

note 4: Mammoth Cave, in west-central Kentucky, is the world's longest known cave system with more than 650 km (405 miles) of surveyed passageways, which is nearly twice as long as the second-longest cave system, the Sac Actun underwater cave in Mexico - the world's longest underwater cave system (see "Geography - note" under Mexico);

note 5: Kazumura Cave on the island of Hawaii is the world's longest and deepest lava tube cave; it has been surveyed at 66 km (41 mi) long and 1,102 m (3,614 ft) deep

note 6: Bracken Cave outside of San Antonio, Texas is the world's largest bat cave; it is the summer home to the largest colony of bats in the world; an estimated 20 million Mexican free-tailed bats roost in the cave from March to October making it the world's largest known concentration of mammals

note 7: the US is reliant on foreign imports for 100% of its needs for the following strategic resources - Arsenic, Cesium, Fluorspar, Gallium, Graphite, Indium, Manganese, Niobium, Rare Earths, Rubidium, Scandium, Tantalum, Yttrium; see Appendix H: Strategic Materials for further details

note 8: three food crops are generally acknowledged to be native to areas of what is now the United States: cranberries, pecans, and sunflowers

9 provinces (do, singular and plural) and 3 cities (si, singular and plural)

provinces: Chagang, Hambuk (North Hamgyong), Hamnam (South Hamgyong), Hwangbuk (North Hwanghae), Hwangnam (South Hwanghae), Kangwon, P'yongbuk (North Pyongan), P'yongnam (South Pyongan), Ryanggang

major cities: Nampo, P'yongyang, Rason

The US has the most technologically powerful economy in the world, with a per capita GDP of $59,500. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at purchasing power parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.

In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, businesses face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.

Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.

Imported oil accounts for more than 50% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.

The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US into a recession by mid-2008. GDP contracted until the third quarter of 2009, the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009, Congress passed and former President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.

Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through FY 2018, the direct costs of the wars will have totaled more than $1.9 trillion, according to US Government figures.

In March 2010, former President OBAMA signed into law the Patient Protection and Affordable Care Act (ACA), a health insurance reform that was designed to extend coverage to an additional 32 million Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.

In July 2010, the former president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.

The Federal Reserve Board (Fed) announced plans in December 2012 to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short-term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. The Fed ended its purchases during the summer of 2014, after the unemployment rate dropped to 6.2%, inflation stood at 1.7%, and public debt fell below 74% of GDP. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With continued low growth, the Fed opted to raise rates several times since then, and in December 2017, the target rate stood at 1.5%.

In December 2017, Congress passed and former President Donald TRUMP signed the Tax Cuts and Jobs Act, which, among its various provisions, reduces the corporate tax rate from 35% to 21%; lowers the individual tax rate for those with the highest incomes from 39.6% to 37%, and by lesser percentages for those at lower income levels; changes many deductions and credits used to calculate taxable income; and eliminates in 2019 the penalty imposed on taxpayers who do not obtain the minimum amount of health insurance required under the ACA. The new taxes took effect on 1 January 2018; the tax cut for corporations are permanent, but those for individuals are scheduled to expire after 2025. The Joint Committee on Taxation (JCT) under the Congressional Budget Office estimates that the new law will reduce tax revenues and increase the federal deficit by about $1.45 trillion over the 2018-2027 period. This amount would decline if economic growth were to exceed the JCT's estimate.

North Korea, one of the world's most centrally directed and least open economies, faces chronic economic problems. Industrial capital stock is nearly beyond repair as a result of decades of mismanagement, underinvestment, shortages of spare parts, and poor maintenance. Corruption and resource misallocation, including show projects, large-scale military spending, and development of its ballistic missile and nuclear programs, severely draws off resources needed for investment and civilian consumption. Industrial and power outputs have stagnated for years at a fraction of pre-1990 levels. Frequent weather-related crop failures aggravated chronic food shortages caused by on-going systemic problems, including a lack of arable land, collective farming practices, poor soil quality, insufficient fertilization, and persistent shortages of tractors and fuel.

The mid 1990s through mid-2000s were marked by severe famine and widespread starvation. Significant food aid was provided by the international community through 2009. Since that time, food assistance has declined significantly. In the last few years, domestic corn and rice production has improved, although domestic production does not fully satisfy demand. A large portion of the population continues to suffer from prolonged malnutrition and poor living conditions. Since 2002, the government has allowed semi-private markets to begin selling a wider range of goods, allowing North Koreans to partially make up for diminished public distribution system rations. It also implemented changes in the management process of communal farms in an effort to boost agricultural output.

In December 2009, North Korea carried out a redenomination of its currency, capping the amount of North Korean won that could be exchanged for the new notes, and limiting the exchange to a one-week window. A concurrent crackdown on markets and foreign currency use yielded severe shortages and inflation, forcing Pyongyang to ease the restrictions by February 2010. In response to the sinking of the South Korean warship Cheonan and the shelling of Yeonpyeong Island in 2010, South Korea's government cut off most aid, trade, and bilateral cooperation activities. In February 2016, South Korea ceased its remaining bilateral economic activity by closing the Kaesong Industrial Complex in response to North Korea's fourth nuclear test a month earlier. This nuclear test and another in September 2016 resulted in two United Nations Security Council Resolutions that targeted North Korea's foreign currency earnings, particularly coal and other mineral exports. Throughout 2017, North Korea's continued nuclear and missile tests led to a tightening of UN sanctions, resulting in full sectoral bans on DPRK exports and drastically limited key imports. Over the last decade, China has been North Korea's primary trading partner.

The North Korean Government continues to stress its goal of improving the overall standard of living, but has taken few steps to make that goal a reality for its populace. In 2016, the regime used two mass mobilizations - one totaling 70 days and another 200 days - to spur the population to increase production and complete construction projects quickly. The regime released a five-year economic development strategy in May 2016 that outlined plans for promoting growth across sectors. Firm political control remains the government's overriding concern, which likely will inhibit formal changes to North Korea's current economic system.

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the US has intensified domestic security measures and is collaborating closely with its neighbors, Canada and Mexico, to monitor and control legal and illegal personnel, transport, and commodities across the international borders; abundant rainfall in recent years along much of the Mexico-US border region has ameliorated periodically strained water-sharing arrangements; 1990 Maritime Boundary Agreement in the Bering Sea still awaits Russian Duma ratification; Canada and the United States dispute how to divide the Beaufort Sea and the status of the Northwest Passage but continue to work cooperatively to survey the Arctic continental shelf; The Bahamas and US have not been able to agree on a maritime boundary; US Naval Base at Guantanamo Bay is leased from Cuba and only mutual agreement or US abandonment of the area can terminate the lease; Haiti claims US-administered Navassa Island; US has made no territorial claim in Antarctica (but has reserved the right to do so) and does not recognize the claims of any other states; Marshall Islands claims Wake Island; Tokelau included American Samoa's Swains Island among the islands listed in its 2006 draft constitution

risking arrest, imprisonment, and deportation, tens of thousands of North Koreans cross into China to escape famine, economic privation, and political oppression; North Korea and China dispute the sovereignty of certain islands in Yalu and Tumen Rivers; Military Demarcation Line within the 4-km-wide Demilitarized Zone has separated North from South Korea since 1953; periodic incidents in the Yellow Sea with South Korea which claims the Northern Limiting Line as a maritime boundary; North Korea supports South Korea in rejecting Japan's claim to Liancourt Rocks (Tok-do/Take-shima)