The U.S. Is considered a mixed economy. Some examples of this include: People can own their own businesses, but political leaders make policies concerning these. The government controls the mail system. The government controls most of the road networks. The government controls most of the schools. Waste collection and treatment are usually provided as a service by the local government. The government has a virtual monopoly on the provision of policing. Intercity passenger rail (Amtrak) is a nationalized industry, as are almost all local trains. All American airports are government operated but all American airlines are private. The government tells manufacturers what to make if something is in need during war time. The FDA bans certain drugs. The government has created a minimum wage law. The government provides social welfare payments to some citizens. The majority of pre-college education is government-provided and a large part of tertiary education is run by state governments. In recent years, the Federal government has given taxpayers money to failing businesses, in the form of bail outs.
The US is a mixed economy because the corporations, individuals and other private firms make most microeconomic decisions. Although the role of all the levels of government combined together is quite large, the government itself prefers to play a small role in the domestic economy.
Economic activity varies largely across the country. While Los Angeles is the center of television and film production, New York is the center for advertising, broadcasting and publishing industries. It also is the financial capital of America. Pacific Northwest and San Francisco Bay Area are major technology centers. While Detroit serves as the center for automotive industry, Midwest is known for its manufacturing industries. Services, which forms the largest economy sector in United States, employs approximately three quarters of the work force. The per capita income of United States is the highest in the world. However the wealth is comparatively concentrated. Therefore, United State's economy is described as a capitalist mixed economy.
America has a mixed economy because it has experienced very well to face the challenges. America has both private and public sector as well as because both are playing important role in the economy point of view. Like u.s many countries have also mixed economy e.g germany, canada, italy, pakistan, india etc.
Because it need needed a mixture of free market and government participation. When you have a mixed economy theres still competition and consumer sovereignty,
Every country in the world has a mixed economy, a few exceptions being countries that are communist, but then still some people are better of then others. This is because people all earn different wages, can aford different thing and spend there money and invest it differently. Like in India. Many would conger up the image of people in shanty towns but if you look at the main cities they can look just as modern and wealthy as London and America
Because the US, having experienced the economic horror of the Great Depression of the 1930s and periods of great business swings, felt it worthwhile to strategise a fine blending of both market economy and government participation.
