What type of economic system does the United States have?

The United States has a capitalist or market economy, which is characterized by private ownership of resources and the ability of individuals and businesses to engage in economic activities with minimal government intervention. In this system, the production and distribution of goods and services are guided by the decisions of individuals and firms in the marketplace, based largely on supply and demand.

A capitalist economy promotes competition and innovation, allowing consumers to make choices that drive the market. Businesses are incentivized to produce quality goods efficiently to attract customers. Profit motives play a central role, motivating companies to minimize costs while maximizing their output and revenues.

While there are aspects of a mixed economy present in the U.S.—as the government does regulate certain industries and provides social programs—at its core, the primary characteristics align with capitalism. This means that the U.S. predominantly functions on principles of free enterprise where market forces largely dictate economic activity.