Economic Analysis Of America's Economic System

Economic analysis of America
During the 1860s to the 1970s the economic system that was used in the US was called “American School also known as the “National System”. This system has three central policies:
1. Support industry: using high tariffs and subsidies to protect industry
2. Create physical infrastructure: Government investment in infrastructure, like transportation, strengthening internal factors.
3. Create financial infrastructure: The national bank relying on policies that promote growth of productive enterprises.
Then helped the progressive citizens benefitted heavily off this system and helped America grow into a booming economy that attracted even more immigrants making America one of the most prosperous and rich countries today with a GDP per capita of 55,200$ . But

These problems are both a side affect of the ineffective justice system and senate but also of the economic ideology that America has been built on. It is called the free market but is more commonly known as capitalism. The idea was to have an economic system in which industry; means of production and trade are all privately owned and are operated via price signals through price system.
The concept of the free market is to have a system where the prices for goods and services are set freely by consent between vendors and consumers. In the free market the forces of supply and demand are free of government intervention or other authority. The concept is in theory very effective and should not need regulation because it will eventually correct itself if problems arise. But this system has crated a pyramid like effect of the population compared to the money that is being made, and unlike countries like Denmark and Canada,

For tomorrow : circular flow, social benfits and tax