Question

In non-political terms, describe the economy of the United States. What elements of capitalism and socialism exist

Answer 1

US economy is a mixed economy, with more elements of capitalism, as well as some elements of socialism or government's presence in the economy.

According to capitalism, all the goods and services in the economy should be produced and sold by the private sector, or in other words means of production in the economy should be owned by the private sector. According to the socio-political, and economic theory of socialism, all means of production should be owned by the society.

US has tended to be closer to capitalism and is mainly considered as a capitalist country, however socialism in the form of governmet's presence in the different sectors of the economy, such as education, medicare and medicaid, highway system,and postal delivery system, etc., is also seen, and that is why US is also known as a mixed economy. Most of other elements in the economy such as production, distribution, and consumption of all other goods and services in the economy which is done by private sector is known as elements of capitalism. Because of predominance of private sector in the economy, the US economy is generally known as a capitalist economy.