Sun. Sep 25th, 2022
economic system in us

The Economic System in the US


The economic system in the US has been a very debatable topic for the last decades. There are many types of economic systems are exist in the world countries.

economic system in us
economic system in us

The government of any country can interfere by using different strategies and policies, such as price controls, ceilings, regulations, taxes, tariffs, and many other tools used in the government.

When the government set minimum prices of goods and services in the country, this policy is called the price floor. For example, if the government is set the minimum wages of the workers or labor in the country, the government is trying to interfere in the market and use a price floor strategy.

The aim of the government for setting price floors is to create policies, and regulations for the welfare of the country’s people. There are many economic systems are exist in the world. These systems are Socialism, communism, and capitalism. Now we discuss these economic systems shortly.

Socialism economic system

In this economic system, social ownership is owned by the government, public and collective and is opposed to private ownership.

The social system is divided into two parts, market, and non-market. Non-market socialism is based on money integration and economic planning and economic calculations.

In European countries, the communists have described socialism as atheism. In the year 1848, it was a common belief that socialism is very respectable among the Europeans and Europeans opposed communism.

England and France, both countries peoples love socialism. The Europeans believed that socialism is the best system for the people and beneficial for the country’s economy.

The British French and German philosophers are live the socialism. In 1865 and 1866 the first socialist conference is held in geneva.

At this conference, a wide range of philosophers attends the meeting. In this conference, the first objection is raised by Marx. Marx opposed state socialism. Milhail bakunin is later following the ideology of Marx. 

Communism economic system

In the communist economic system, the total ownership of the country’s resources and authority of the production of goods and services is governed by the government.

The government is decided what types of goods and services are produced and the allocation of goods and services and the country’s resources. First introduced the communism theory is carl Marx.

Carl Marx gives this theory and gives a logic that he wants to eliminate poverty in the country and finish the difference between poor and rich.

In this system, the workers are saved by government policies and receive benefits from the government. The goal is to treat all people equally despite race, caste, and gender. In this system, total production ownership has owned by the government.

At the beginning of this system, the government is forced to convince the people for accepting this system and people support their government for the communist system. After many years of struggle, the people of Russia were convinced and had the full support of the government for the communist economic system.

People realized that the communist system is beneficial for the people of Russia and that this system gives economic prosperity and economic development. 

United States Economic System

The united states economic system is a mixed economic system. The meaning of the mixed economy is that the US economy has mixed characteristics from the capitalist economic system and the socialist economic system.

The mixed economic system saves the system and protect private property and allows freedom to private organizations and private businesses.

In the USA economic system, private businesses and private organizations have the freedom to excel and grow their businesses and take ownership of their business.

The government has the right to collect taxes and impose taxes on private businesses and impose the law of the country. For this, the GDP of the country is also increasing.

Government should ban and eliminate illegal business activities and shut down their business for involvement in illegal business activities. the government has direct control of the businesses of the production of goods and services.

In the United States economy, some property ownership is owned by the government, and some properties are owned by private businesses.

The government is control the prices of goods and services for the protection of consumers’ rights. The government controls the supply and demand of goods and services for the benefit of the country’s people. 

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