What kind of economic system does the United States have?

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For the most part, the United States has a mixed economy. The most influential characteristic of the American economy is that of a free market, meaning there is substantial freedom to buy, sell, and produce in a competitive environment. But the US system also has elements of regulation, making it simultaneously characteristic of a command economy.


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There are a number of different types of economies throughout the world.  Economic systems determine how the people of a country buy and sell goods and how production processes are controlled.  The United States has a mixed economy based primarily on principles of private ownership.  Individuals own the goods and services that they make or provide.  Furthermore, private businesses control factors of production.  This is known as a free enterprise system.  

In addition, the United States' economic system is often characterized as a 'market system' because it is controlled by the market.  The market is where producers and consumers come together in the exchange of goods and services.  This interaction drives prices in the United States, unlike in many other countries where prices for certain goods are set by the government.  

The reason that the United States' economic system is considered to be a mixed system is because the government is involved in the regulation and guidance of the United States' economy.  Although it is more 'hands-off' than in some countries, the U.S. government still plays a significant role in the country's economy.  There are a number of services which are provided by the government in the United States in lieu of private business.  These services include:  education, roads, postal systems, policing, the court system, and more.

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United States is essentially a mixed economy as mentioned and although it is regarded as a capitalist regime it does not entirely fulfill the requirements to be referred as such.  To explain this point we should further look into these requirements and determine which ones have been fulfilled and what aspect of the economy blends with these requirements to make it a mixed economy. According to Adam Smith a Scottish philosopher who contributed immensely to the fundamentals of capitalism states that for an economic system to be regarded as purely...

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user482354 | Student

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nikasho0100 | Student

United States is said to be having a mixed economy. But however It does have some characteristics of a free market economy.

if u placed it in a economic system line showing command economy on one side, mixed economy in the middle and free market economy on the other end united states would stand somewhere between mixed economy and free market economy. (slightly towards the free market side)