<P> The economic history of the United States is about characteristics of and important developments in the U.S. economy from colonial times to the present . The emphasis is on economic performance and how it was affected by new technologies, especially those that improved productivity, which is the main cause of economic growth . Also covered are the change of size in economic sectors and the effects of legislation and government policy . Specialized business history is covered in American business history . </P> <P> The colonial economy differed significantly from that of most other regions in that land and natural resources were abundant in America but labor was scarce . </P> <P> From 1700 to 1775 the output of the thirteen colonies increased 12 fold, giving the colonies an economy about 30% the size of Britain's at the time of independence . Population growth was responsible for over three - quarters of the economic growth of the British American colonies . The free white population had the highest standard of living in the world . There was very little change in productivity and little in the way of introduction of new goods and services . </P>

When did the united states become the largest economy