Economic Development Report: Analysis of US Economy and Policies

This report analyzes the economic development of the United States, examining the interplay between market, command, and mixed economic systems. It highlights the role of government in regulating the economy, ensuring fair distribution of resources, and promoting social welfare. The report discusses the strengths and weaknesses of each economic model, emphasizing the benefits of a mixed economy that balances private sector initiatives with governmental oversight. The report analyzes the factors of production, the role of private and public sectors, and the impact of government regulations on various sectors like healthcare, education, and essential goods. Furthermore, the report details the economic policies and their impact on the overall economic landscape of the United States, including the roles of private organizations and the government in the context of a mixed economy.

Running head: ECONOMIC DEVELOPMENT
Economic Development
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1ECONOMIC DEVELOPMENT
Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................2
Answer 3..........................................................................................................................................3

2ECONOMIC DEVELOPMENT
Answer 1
In the United States political economy, it can be observed that the country controlled by
the government in broad aspect but does not intervenes in all the matters of the country.
Considering the factors of production of the production, the government of the United States
does not control all the factors. The area that are controlled by the state the natural resources of
the country and infrastructures such as roadways and railways. However, other infrastructural
factors such as telecommunication and airways are controlled by the private organizations under
the supervision of the state. It means that for the respective sectors and the state made some
broad regulations which the private organizations have to abide by. Value of the goods and
inputs in most cases are decided by the phenomenon of invisible hand but the state intervenes in
some of the cases to assure equal distribution, welfare and restrict any kind of exploitation.
Therefore, in the United States the private organizations and individuals are allowed to act to
maximize their profit and utility respectively but under state regulations. From the discussion so
far, it can be inferred that the United States is a mixed economy since none of the state or private
organizations have total control over the economy.
Answer 2
The Federal government of the United States owns various sectors where equality and no
exploitation must exist such as health sector, law, education and postal service to ensure fair
price and social welfare of the economy. On the other hand, such as production of daily
household necessaries and consumers goods are produced by the private actors. However, they
have to obey the rules and regulations set by the state. In case of drugs the state specifies and
limits the use depending on the cost and benefits such things and thus drug market is strictly
controlled by te state. The state tax the private organizations and individuals to transfer benefit to

3ECONOMIC DEVELOPMENT
the weaker section of the economy. However, there are sectors where state works together with
the private organizations in order to achieve balanced welfare and productivity under public
private partnership model.
Answer 3
Market economy and Command economy lead to extreme conditions where the economy
of a country suffers. In case of market, economy there is huge exploitation of the individuals
since private organization acts to maximize their profit. Over consumption is a part of market
economy. On other hand, command economy lead to equal distribution of wealth and resources
but is significantly inefficient in utilizing resources. Quality of products and services are low and
there is over supply. However, both the type of economy has some benefits and mixing the idea
of the both would mitigate their shortcomings and lead to economy that is more balanced. Thus,
mixed economy is the better way to achieve the economic goals. The role of the state in the
mixed economy is to let the economy work as per the market but keep on monitoring the
functioning of the economy and intervene with rules and regulations whenever and wherever is
necessary to maintain equity in the economy. Thus, in mixed economy, private organizations are
actors and the state is the regulator.