What is the economic system in the United States?

The economic system in the United States is best described as a capitalist or market economy. This classification is based on the fundamental principles of capitalism, which include private ownership of property, individual entrepreneurship, and the ability for consumers and businesses to engage in voluntary exchanges in the marketplace. In a capitalist economy, the production and pricing of goods and services are primarily determined by competition in a free market, rather than by a central authority.

While there are elements of government regulation and welfare, which could suggest some characteristics of a mixed economy, the core of the U.S. system rests on the ideals of a capitalist framework. This approach fosters innovation and efficiency by allowing individuals the freedom to pursue their economic interests, thereby driving growth and creating wealth. Therefore, labeling it as a capitalist or market economy accurately captures the essence of its functioning within a predominantly free-market structure.