Assignment 2 Capitalism And The U.s. Economy

Running Head: ECONOMICSEconomicsCapitalism and the U.S. EconomyIn a command economy, the government regulates the market, production and economic activity factors while considered an essential element of economy. In a planned or command economy, government plays major role in control and regulate the economic activities of nations such as the supply and demand of goods and services, resource allocations and use the nation's capital, labor and resources. The US economy is different from a command economy because the US government is a true free market economy that means lacks of government regulation but the government play role in economic activities (Swanenberg, 2005). The US government has not interfered into the demand and supply, ownership of private property, unregulated prices and a competitive market that crate a free market economy in the nation. The US is a true free market and a mixed economy because of the regulation free market characteristics. In the US, the market is regulated free but the federal government regulates private enterprises in different ways such as control prices through direct and indirect ways. Moreover, the federal government interacts with and regulates the U.S. economy in the context of both a command and the free