Defining Economy in the States
Created on Tuesday, 03 April 2012 16:52
There are a lot of different economies in the world and they are called different according to the level of their development. But still the most successful economy in the world is considered to be the one in the United States. The successful economy is that one which makes products and they are demanded in the present market. When a product is produced and sold and everybody is happy to participate in that sort of business relations are the main features of constantly developing economy.
But there are different ways to evaluate the level of developing economy and in the country called the United States the success rate of economy is measured and assessed by the US Gross Domestic Product or in other words GDP. That is generally excepted marker of evaluating the economy of the United States. the US Gross Domestic Product means the number of all the products manufactured by all the residents of the United States and all the existing companies located in the US.
If taking into account all the possible economies in the world, within all the economic systems, businessmen and all sorts of managers collect and develop natural resources, labor and technology to develop new ideas and realize them in all sorts of products and services. There are different types of economies and some of them are called socialistic and others are capitalist. The difference between them is huge and people experience different problems but still the capitalist system is recognized as the most successful one and any socialist economy will come to the capitalist sooner or later. If you do not know anything about economies, it is better to learn that any capitalist economy is represented by a specific system or a narrowed group of people to manage and control great sums of money in other words capital and this group of people plays a significant role in the economy of this pr that country as they make and take the most important monetary decisions.
At first when the notion of capitalism was introduced in the 19th century and it really negatively colored and the introducer of this term was named Karl Marx and he and his supporters believed that such great sums of money provide the group of people with power. But this power is not intended to better the life of the poor but to get more profits and in comparison with socialist economies, these economies spend more money to hold all the power by the government and to pay more attention to the financial problems of people but not on making excess profits. But the economy of the United States is not just a capitalism country but it has found the golden middle and the States involve different resources to control the power and do not let the power go to the hands of rich people.
There also certain authorities and government agencies those usually deal with the concerns and worries of ordinary people. As a result we cannot call the American economy a pure capitalist economy as it manages to combine the best sides of both the types. That is why the economists refuse to call the American economy the capitalist and they prefer calling it a mixed type with the prevailing role of rich people. In that sort of economy, people do have power as well and they can control the financial flows through choosing one or other products and by voting for those or these politicians.