Question

In the United States, businesses have substantial freedom from government interference, but the government will step in and regulate the economy from time to time to guarantee individual rights. The United States uses which type of economic system?

Answer 1

Answer:

capitalism

Explanation:

No country in the world is completely capitalistic or completely socialistic. Every government is a mixture of both, but most lean towards on side or the other.

The US was normally known as being the champion of capitalism, but when the republican party shifted its free market policies towards higher regulations and less trade, that started to change. On a capitalistic system, private entities (suppliers and consumers) decide how to allocate resources and they generally do it much more efficiently.

Pure capitalism doesn't accept governments, the laissez faire doctrine advocates for no government intervention, but in a real it is not possible.

Even in capitalistic countries, governments must exist and they need money to function, so they tax people and businesses. They also regulate some specific activities (e.g. monopolies, trade tariffs, etc.) and they try to redistribute wealth (e.g. welfare, unemployment benefits, free education, social security, etc.).

The US is still one of the most capitalistic countries in the world, although the last foreign policies point in another direction. Before the US advocated for free trade agreements and free trade zones, but that has been partially replaced by trade tariffs and quotas.