These developments create increased employment, development of human capital and grow the economy, propelling the country forward. Such investments result in market diversification, tax incentives and subsidies. In 2018 alone, the country had an influx of FDIs worth $319 billion. The U.S.A is the largest recipient of foreign direct investments in the world. This creates a more stable and transparent trading and investment environment, making it cheaper for US-based companies to export their products and services to partner markets. United States has FTAs in place with nearly 20 countries around the globe. The goal of FTAs is to reduce or eliminate trade barriers, easing the path to business and allow an easier flow of international trade. Free trade agreements (FTA)įree trade agreements (FTA) are multinational agreements between different countries forming a trade bloc. Measures such as social security help the government provide incentives to the poor without exercising too much control over the market which may jeopardize economic growth. In this kind of economy, the government exercises some central control merely to regulate the economy in broader terms. This has led the United States to evolve the free market economy into a mixed market economy.

In such a model, there are few privileges for those who are poor. However, the free market economy has increased the divide between the rich and the poor. During America’s early years, this model was crucial to the rapid growth and development of the country. The Free market economy model has little to no government oversight.

This model works by letting market forces determine supply, demand, price and other aspects of the economy. The American Dream largely depends on a free market economy. Free market economy vs Mixed market economy

Below are some vital aspects of the American Dream. The Declaration of Independence laid the foundations of the American Dream in the following words, ‘We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness.’Īnyone willing to achieve their goals through hard work, taking risks and making necessary sacrifices can achieve the Dream. What the Meaning of History and 4 Reasons Why It’s Important to Study It?Īmerican Dream and the Declaration of Independence

What is the american dream