US Economy

Running head: US ECONOMY
US ECONOMY
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US ECONOMY
The U.S. economic system.
The United States can be stated to have a mixed economy. This means that it functions as
per the economic system which tends to comprise of the characteristics of both the capitalism
and the socialism. The mixed economic system is largely aimed at protecting the private property
and in addition to this, also aims to allow a sense of economic freedom in the usage of the
capital. However, it does not limit itself to this, and the government will be required to intervene
in the economic activities in order to ensure that the aims of the social objectives and the public
aims are also achieved at large. According to Kurtz et al. (2014), the government of the United
States has had a considerable role to play in the different economic affairs of the nation and there
have been man functions which have come under the direct influence of the public sector. In
addition to this, the economy of the United States tends to comprise of elements of the free
markets as well as the centrally planned economic controls.
The immediate causes of the significant downturn
The immediate causes of the significant downturn can be stated to be as follows:
 The International trade imbalance and tax lending standards increased and developed the
household debt which also made the real estate bubble burst.
 In addition to this, the housing policies of the government can also be stated to be quite
limited in nature (Smith et al., 2008).
 Moreover, the regulation of the non –depository financial institutions can be stated to be
largely limited and hence, with respect to this, debt regulations
 Due to the above given reasons, the United States economy faltered considerably and the
Great downturn of 2008 took place which brought about recession all around the globe.