ECONOMIC  Systems

The American system (type)

 The American (Type) System

In a narrow sense, the (North) American economic system refers to the United States and Canada. This type of organization closely resembles Great Britain, Australia, New Zealand. In general, it presents itself as a "bursary capitalism, loud in self-promotion, ultra-liberal and self-inflating, in which key statements in public discourse are drawn from the theory of supply and from the monetarism of the Chicago School" (Ion Pohoață) - see the priority of supply over demand, the precise determination of the money supply, economic cleansing through expensive loans, focus on deregulation and privatization.

The most important characteristics of the American model are:

a. total freedom of action and enterprise (associated with minimal state intervention and the rule of supply and demand);

b. rejection of the mentality of assistance (everyone takes their fate into their own hands, enjoys success or personally bears the failure of their choices and actions);

c. remuneration of production factors through the market;

d. appreciation of consumerist behavior at both the micro and macroeconomic levels;

e. distribution of resources necessary for economic development mainly through the

stock exchange system (fulfilling freedom of movement of capital contributes to allocative efficiency);

f. consideration of the enterprise[1] as a commodity (its main function is to obtain short-term profit; if earnings decrease, it is sold on the stock exchange, without any mercy, to enter into hands more skilled in exploiting its chances of success).

[see: Ion Pohoață – Capitalism. Economic Itineraries (Bucharest, Economic Publishing House, 2000, p. 128)]

Note:

Specialist works include among the defining aspects of American capitalism the "wide opening of migration". Such a feature, intended to insist on the interest of many capital holders to use (cheaper) labor and to highlight the chances that foreigners willing to "sell their arms and/or brains at a reasonable price" receive, should not be placed in opposition to the media information regarding the measures against migrants prepared by the administration installed in Washington in January 2025. It is not appropriate to confuse the current policies regarding illegal migration with the attitude of Americans towards migration in general, a favorable one throughout the history of the United States.

[1] "Professional training, community life, the employee's family, the insurance system, etc. mean extra worries and uncertain expenses. With a flexible labor market, it is preferable that these things be solved outside the perimeter of the enterprise. The enterprise must remain the place where the optimal combination of production factors is achieved and good earnings are made." (see: Ion Pohoață – op. cit., p. 128)