What type of economy does the United States have?

The United States has a mixed economy. A mixed economy combines aspects of a free market economy and a planned economy (also called a command economy) controlled by the government.

Examples of how the United States has a free market economy include how goods and services are produced based on the supply and demand interests of consumers and sellers. Private property is also protected.

An example of how the United States has a planned economy is seen by how the government regulates the postal service, controls education and hospital care, and oversees infrastructure, such as roads. Also, as an incentive to farmers, oil companies, and utility companies, the government will offer subsidies (a form of aid) to promote economic growth.

In a mixed economy, the self-interests of people help steer and grow the economy, while the government acts to protect the people and its larger economic interests.