The united states has an economy based on capitalism.
Capitalism is very different from socialism and communism, in which the government maintains tight control of the economy. The United States is possibly the most familiar country with a capitalist economy, which many citizens see as necessary to democracy and building the “American Dream.” Capitalism also taps into the American spirit, being a more “free” market compared to the more government-controlled alternatives.
The United States of America, one of the world’s largest economies, operates as a free market economy in consumer goods and business services. The government imposes rule even in those areas to protect the interest of all. It serves as a command economy in defense, some retirement benefits, medical care, and other regions.
The united states has an economy based on socialism.
Another possible drawback depends on whether you prefer competition or cooperation. As we saw in Chapter 3, “Culture,” essential values in the United States include competition and individualism, which arguably reflect this nation’s capitalist system. Children in the United States are raised with more of an individual orientation than children in socialist societies, who learn that the needs of their community are more important than the needs of the individual. Whereas U.S. children learn to compete with each other for good grades, success in sports, and other goals, children in socialist societies learn to cooperate to achieve tasks.
Yet capitalism also has its drawbacks. There is much more economic inequality in capitalism than in socialism. Although capitalism produces economic growth, not all segments of capitalism share this growth equally, and there is a much more significant difference between the rich and poor than under socialism. People can become very rich in capitalist nations, but they can also remain relatively poor. As we saw in Chapter 9, “Global Stratification,” several Western European countries that are more socialist than the United States have fewer extremes of wealth and poverty and take better care of their poor.
The united states has an economy based on a hybrid system.
The USA is a mixed economy because although capitalism with private ownership is widely available for many industries, it is not available for all sectors. The government still imposes lead and regulations that make the USA a mixed economy rather than a free market economy.
In the U.S. capitalist system, there is a mixed economy. Because the U.S. does not have a command economy where the government owns everything, the government is limited. For example, when companies merge and form a monopoly on the market, they are usually fined by the U.S. government but do not cease to exist.
The U.S. economy is the sum of all economic activities in the country. The economy comprises the manufacturing, agriculture, and services sectors- each vital to the country’s success. Manufacturing is significant in the economy because it’s an necessary Gross Domestic Product (GDP) source. Agriculture and services are also important sectors of the economy.
During the 2008 financial crisis, the U.S. economy suffered severe problem. Manufacturing less five percent from 2007 to 2009. Jobs in agriculture were also lost as demand fell for agricultural goods and services. The U.S. economy faced a severe recession with a nine percent reduction in GDP in 2008. While many countries fight during this time, including France, Germany, and Japan, the U.S.-led economic recovery has been robust.
After years of trough, many economists believed the U.S. was well on its way to a full recovery by 2012. However, the recession had a lasting impact on many areas of the U.S. economy, slowing economic growth and increasing debt for years to come. To help recover from the recession, the federal government enacted several stimulus measures under President Barack Obama’s administration. These contain a $787 billion financial bailout and increases in military spending and infrastructure development projects.
Despite these measures, growth has been slow since the 2008 bust. In 2017, GDP grow only 0.8 percent compared to 2016’s gain of 2.6 percent. In addition, unemployment remained high at 4 percent for most of the past four years despite government stimulus measures and an economic recovery plan known as numeric easing. Many experts agree that growth will only increase when unemployment decreases to lower levels- which cannot happen without economic motivation measures such as rise wages and taxes on businesses and firms.
Although growth has been slow, debt has risen high over the past several years due to economic stimulus measures and increased government spending on base projects and military operations abroad. The national debt reached $21 trillion in 2017- an increase of 65 percent since Trump took office in January 2017.
While some economists believe raising interest rates will slow down economic growth, others believe increasing debt is a symptom of an economic slowdown because it impedes economic growth and increases debt levels, further boosting economic activity as it inflates prices for interest payments on loans used to finance that activity thus increasing conditions for continued inflationary increases in costs which increase demand for increasing debt service on loans extending still greater impetus to further gains in still greater debt maldistribution of purchasing power which tends to promote conditions which are typically naturally to reduce said purchasing power thus enabling malinvestment causing misemployment and mal inflation creating malpractices promoting maladjustment which tends eventually to produce market crash or worse yet another maladjustment which makes mal adjustment.
Although growth has been slow since the 2008 recession, several government stimulus measures have helped sustain growth over the past few years. However,grow government debt and weak wages remain significant barrier to help good growth in the future.
Agriculture – The agriculture industry contributes about 16% of GDP (Gross Domestic Product) to the U.S. economy. In 2014, agricultural production was value at $188 billion.
Forestry – In 2014, forestry contributed approximately $32 billion to the U.S. economy. Timber products add paper, lumber, wood pulp, and fuel wood.
Mining – Mining includes extracting valuable metals and minerals from the earth. Metals take out in 2014 were worth over $150 billion.
Manufacturing includes producing goods using raw materials, plant, equipment, and labor. Goods make in 2014 had a value of 8 trillion dollars.
Construction includes building roads, bridges, tunnels, dams, airports, schools, hospitals, and office buildings—construction activities in 2014 produced goods and services with a total about value of 1.3 trillion dollars.
Services include retail trade, transport, finance, insurance, real estate, rental, professional, business, personal care, education, health, social work, religious, and welfare organizations. Total service industries’ output in 2014 was value at 14.9 trillion dollars.
Government includes national defense, justice, public control, foreign aid, postal systems, intelligence firm, checking bodies, and other center. The Regime’s contribution to the U.S. economy was 1.6 trillion dollars in 2014.