What is the economic system practiced in the United States?

The economic system practiced in the United States is characterized as a capitalist economy. In this system, the means of production and distribution are predominantly privately owned and operated for profit. Individuals and businesses engage in voluntary exchanges in a market that determines prices and signals supply and demand. Competition is fundamental in capitalism, which encourages innovation, efficiency, and a wider variety of goods and services for consumers.

This choice reflects the United States' commitment to free markets and private enterprise, where the government's role is typically limited to regulation to ensure fair competition and protect consumers' rights rather than controlling the means of production. In contrast, socialist and communist economies involve greater government control over the economy, limiting private ownership, and are structured around the distribution of wealth more evenly among the population, which is not the case in the U.S. The feudal economy, historically relevant in medieval Europe, revolves around a system of land ownership and obligations among different social classes, which does not apply to the contemporary economic context of the United States.