First, the capital investment should increase the capacity and/or efficiency of production, which will lead to economic growth, which shows up in two critical ways. First is the ability for businesses to reinvest their profits to continue this growth, and second, the labor population and consumers who obtain employment due to this growth will have more money on hand, which will increase their spending.
Answer: The US economy is a Capitalist market which is the means of production and distribution are privately or corporately owned and development occurs through the accumulation and reinvestment of profits gained in a free market.
