The economic system of United States is regulated by its government. An economic system refers to the way a nation or a government distributes its resources. The United States government regulates the country’s economy through provision of lawful public structure, sustained competition, supply public commodities and services, reorganize revenue, and alleviating the country’s market. The United States has a mixed economic system; it includes both free markets and centrally planned economic controls. The economic system generally occurs in different forms such as capitalism, socialism, and communism. Capitalism economic system is whereby goods are privately owned and decision making incorporates both the public and the state. In socialism economy, goods are produced for use and not generally to generate profits. Socialism economy focuses on satisfying human needs hence goods and services are primarily produced for use. Communism economy on the other hand advocates for common ownership of on the means of production. United State has a capitalist type of government.
The United States citizens have great freedom when it comes to the economy; this is because the citizens can choose whom they want to work with and what they will buy. This has been promoted due to free markets. In United States the consumers, manufacturers, and the government contributes in decision making when it comes to pricing system; this leads to a functional economy. The government provides public safety, assure health competition, and provide quality services such as justice, education, postal services, road system, and national defense. Additionally, entrepreneurs are allowed to build up their businesses as long as they are capable of providing quality services and goods. Sometimes, government regulations tend to interfere with pure competition. This happens when the government wants to promote other national objectives such as income steadiness, local development or ecological protection.