Question

To what degree do you think that the U.S. economy “works" for the people of this nation? Provide specific facts from the chapter in support of your assessment.

Answer 1

The United State is a true capitalist economy, in which welfare of people is paramount. In my opinion, the country indeed works for the people of the nation to its fullest capacity.

Economically speaking, there are two key aspects which any country must fulfil to ensure that it works towards satisfaction of the people of a nation these are namely satisfaction of human demand, and public administration.

The country is one of the pioneers of capitalism which believes in maximization of the interest of individuals in the economy. It is aimed at making sure that the demand for a commodity can be satisfied in the market by subsequent supply. The interest rates in the country are extremely low, due to which companies can avail loans at attractive rate of interests and are able to convert this demand into profits relatively easily. The size of the US GDP growth in itself is much larger than the total value of countries in Asia.

The core reason for this is the pro economic approach which the government has kept over the years. Low interest rates promote corporate spending and ensures that demand for goods and services can be handled in a manner that maximum consumer satisfaction can be reached. The supply lines have constantly been shifting to accommodate for the increase in demand, thanks to the expenditure on technological development by the government and the private parties alike.

Further, the people can be rest assured that other matters such as governance and social security and jobs for the marginal group is handled adequately. The minimum wage laws and unemployment benefits in the United States are bigger than the average income across most Asian economies. This protects the interests of both the buyers and suppliers and ensures market equilibrium and constant growth.

Thus, we can conclude that the nature of the American economy is such, that it promotes the expansion of the country and fulfilling all demand which is generated.

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