2016-04-14 23:55:51
What factors caused american business to develop into a mixed economic system rather than some other type of economic system?
2016-04-15 03:27:20

The economic system in the USA is rooted in the Laissez-Faire capitalism of Adam Smith. However, the real-world setting in the US is not as Laissez-Faire as Smith would have liked because the government greatly participates as more than umpire and rule maker. The government take part in American Business by way of resource or product markets, interest, and especially taxes which results in making the American business progressed into a mixed economy, showing both elements of capitalism and socialism. Other factors such as foreign competition, the Great Depression, World Wars I and II, and the increasing age of population have also contributed to the mixed economic system.