Critical Analysis of Economic Theories that Shape the Economic System of the USA

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USA Comparative Political Economy
Introduction
Political economy is a social science that focuses on the relationship between government and public policies. The discipline provides critical theories that are essential in understanding the global economy. All the theories covered in the course are meant to give a comprehensive understanding of the relationship between politics and economics. Every country has a unique economic system that helps facilitate economic growth and development. Some of the theories that are applicable in the USA's economy include Keynesian and Marxian theories. These theories play an integral role in the overall economy of America. Essentially, the economy of the USA is classified as a mixed or capitalist economy. A mixed economy usually combines the aspect of capitalism and socialism to create and develop a country. In most cases, a mixed economy focuses on protecting the economic system, private properties, and freedom in terms of service delivery. Economic freedom is very critical since it facilitates a freeway towards achieving the social needs of the public. The research paper will entail a critical analysis of economic theories that shape the economic system of the USA.
Evidence and Analysis
All the theories encountered in the course have created a comprehensive outlook on how economic systems work. America has an extensive history that has shaped the economic state of the country. America relies on the mixed economy, which entails protection and service delivery (Stilwell and Frank, 2011). Typically, mixed economies usually combine both traditional and market commands to make the overall market flexible. The constitution established America's mixed economy with well-crafted amendments to protect its people and entrepreneurs. Capitalism is an economic theory that Karl Marx established, and it reflects dynamism in terms of private businesses. Capitalism advocates for new ideas and innovation, and it is regarded as one of the best theories that can be used to shape economies. In the USA, capitalism is practiced in broad dimensions (Stilwell and Frank, 2011). Literary, under capitalism, privately owned businesses invest money in other developing organizations to create uniform development. For example, due to the complete exercise of capitalism, the USA owns some of the most significant technological corporates globally (Douglas, 2015). Facebook, Microsoft, Amazon, and google are perfect examples of companies that have been formed under capitalism theory. In other terms, the government of America does not own corporate firms.
According to Karl Marx, capitalism creates a platform of independence whereby the government cannot influence private sectors. The government has little or no interference to these markets, w...