What type of economic system operates in the United States?

The United States operates primarily under a capitalist economic system, which is characterized by private ownership of property and the means of production. In a capitalist system, individuals and businesses have the freedom to operate their enterprises with minimal government intervention, engaging in trade and investment according to the principles of supply and demand. This leads to competition among businesses, innovation, and a focus on consumer choice, which are hallmarks of capitalism.

The U.S. system allows for both individual wealth accumulation and the ability for businesses to reinvest profits, fostering economic growth. While the government does play a role in regulating and overseeing certain aspects of the economy (such as health care, banking, and environmental regulations), the foundational principles of capitalism remain dominant in guiding economic decisions.