The Four Types Of Economy In The United States

Every time you swipe your credit card or hand a cashier money, you are contributing to our economy by spending money and in exchange for that, you are receiving goods and services that you purchased.

The middle class contributes more to the economy than the rich class does. The economy is the wealth and resources of a country that includes the production and consumption of goods and services. There are four types of economy a country can have, they are mixed, free market, command and traditional. The United States is a mixed economy. A mixed economy is where the economy is a free market but also government planned. This means the private businesses can sell goods but the government provides services that the private individuals can’t, like

The reasons people believe this is because they think entrepreneurs and rich investors create jobs for everyone else. Henry Blodget states, “Yes, we can create jobs temporarily, by starting companies and funding losses for a while. And, yes, we are a necessary part of the economy's job-creation engine. But to suggest that we alone are responsible for the jobs that sustain the other 300 million Americans is the height of self-importance and delusion.” This is basically saying that the wealthy create some jobs like investing in starting up companies but are not the main source for the economy and creating other kinds of jobs. Blodget, also states, “The Company’s customers buy the company's products. This, in turn, channels money to the company and allows the company to hire employees to produce, sell, and service those products.” Here, he is saying that the middle class is the one that keeps the economy strong and going because they are the ones that consume the companies’ products so they have more demand for them. Without the middle class, companies would have no costumers to buy their products and the companies would go out of business. He doesn’t say that the middle class is the one that creates jobs instead; he said, “Rich people don't create the jobs. Our economy creates jobs.” All the classes contribute to the economy by investing or

Rich fry says, “ A new Pew research center analysis of wealth finds the gap between Americas upper-income and middle income families has reached its highest level on record.” He also mentions “In 2013, the median wealth of the nations upper-income families ($639,400) is as nearly as seven times the median wealth of middle income families ($96,500), the wildest gap seen in 30 years. This wealth gap shows the inequality in our economy. From what I am aware of, one of the 2016 democratic presidential candidate Bernie sanders was very passionate about the inequality between classes. He wanted to tax the rich people. According to Bryce Covert, “The top marginal tax rate is 39.6 percent, although the rich end up paying less.” She also mentions the reason to justify why there is such a huge gap, “Republicans have constantly claimed that higher tax rates rates on the wealthy will hold back economic growth, while lowering rates will spur it