Assignment 2: Capitalism and the U.S. Economy

Unit 1: Module 1 - M1 Assignment 2 Discussion

Assignment 2: Capitalism and the U.S. Economy

In some of the other countries, such as the Soviet Union, the command economy is run by the government. They decide what the businesses can make, how much they can make, and sometimes they even decide what to charge. On the other hand though the government will stand behind the businesses and help financially if they lose money. In the U.S. every business has the power to decide what to make, how much they want to charge, and how many they want to produce.

 The U.S. is not a free market, we are more of a crony capitalism, which is an economy that the success of a business depends on the relationship between the people and the government, and their business. It is the distribution of government grants,, and tax breaks for the companies. The U.S. government regulates in two different categories, the direct and the indirect to help control prices. They help to prevent monopolies like electric companies so they can't raise their prices to what people can afford. The government make sure they still make a reasonable profit. After the great depression the government put into play a complex system to help stabilize agricultural goods because the goods will usually fluctuate because of the change of supply and demand. 

 The Federal Government accounts roughly 20% of the economy, but it depends what is recorded for the government expenses, state government share about 29% by contributing money to the public sectors.

References 

Gordon,David; Misses Daily: The American Economy is Not a Free-Market Economy. (September 24, 2013}

     https://misses.org

U.S. Department of State; Regulation and Control in the U.S. Economy. (2012)

     WWW.economics.about.com