Ever wonder what makes the US economy tick? It's a mixed bag, primarily leaning towards a **market economy**, often referred to as **capitalism**. This means that businesses and individuals make most of the economic decisions, driven by supply and demand. Prices are generally set by competition, not by the government.
However, it's not pure capitalism. The US incorporates elements of a **mixed economy**. The government plays a role through regulations (like environmental protection or worker safety), social security programs, and providing public goods (like infrastructure and national defense). They also influence the economy through fiscal policy (taxation and spending) and monetary policy (controlling interest rates).
So, think of it as a capitalist engine with a government governor. Understanding this blend is key to understanding the US economy's strengths, weaknesses, and future direction.
