The economic system in the United States is a mixed economy that combines elements of both capitalism and socialism. It is principally a system of private ownership and free enterprise, often referred to as a "free market economy," where consumers and producers largely drive economic decisions through supply and demand. However, the government plays a significant role in regulating and guiding the economy to promote public welfare, ensure competition, provide public services, and intervene in areas such as education, infrastructure, and national defense
. Key features of the U.S. economic system include:
- Private ownership of property and businesses, with individuals and companies controlling most economic activity.
- Government intervention through regulations, licensing, tariffs, and social programs to address market failures and promote social goals.
- A price system where prices fluctuate based on supply and demand, guiding consumer and producer decisions.
- Provision of some public services and a limited welfare state to reduce poverty and provide essential services.
- Monetary policy managed by the Federal Reserve, which influences borrowing costs and overall economic stability
Thus, the U.S. economy is neither a pure free market nor a command economy but blends market freedom with government oversight and intervention to balance economic growth with social objectives
