The United States
The US economy is primarily drive by capitalism; it holds its way to the interplay of market forces and in some respect to the Keynesian Philosophy of human influence on the factors of production and market. The means of production, distribution and consumption of goods ans services within the US economy is controlled by individuals. All means and factors by which goods and services are produced, distributed, and consumed by individuals and businesses in the United States. Indeed, the economy of the United States is a large one with the Gross Domestic Product (GDP) of the nation was $12.
5 trillion in 2005; this high values makes it one of the largest economies in the world. Despite the fact that some other nations have larger arable land space and population size, the enormous production, consumption, and spending which take place within the U. S. economy guarantees this noble status. Although the US does not run a pure capitalism, its market economy provides platform for individual to control the means of production, distribution and consumption of goods and services, as well as fixing the prices of such products.
This kind of capitalism allows individual privileges and self-perpetuation in the means of production, distribution and consumption of goods and services above communal factors. As a model of capitalism, the economic system adopted by the nation is based on the value of self-discovery, independent liberalism and productivity. It is summed as ‘individuals do their thing’. This system is not alien to the Americans as it dates back to the pre-colonial days. It has therefore been sustained because it significantly empowers individuals to participate in the system that affects their standard of living, and life in general.
The consumer culture is guided by the statutory individual inputs to the market and government policies. While some would prefer local stores and eateries, others may prefer high-cost supermarkets because the economy permits the freedom of choice. What limits this freedom is the prevailing market factors and government polices [to discourage or encourage] However, when it becomes important the government performs strategic role to ensure the safety of the citizens and the sanity of the economy; this it does by performing basic economic roles outside the limit of individuals.
It is involved in the provision of goods and services which individuals cannot provide. Some of these services include provision of assistance services to low income earners and the unemployed through welfare programs, defense services across the length and breadth of the nation. Besides it sets the rule for the game of the market, encourages production of some goods while discouraging others.
• D Coates – Political Studies, 1999 – Blackwell Synergy Models of Capitalism in the New World Order: the UK Case • RE Lucas – Frontiers of Research in Economic Theory: On the mechanics of economic developmentSample Essay of AssignmentExpert.com