The United States has a mixed economy, which means that it combines elements of both capitalism and socialism. In a mixed economy, the government intervenes in economic activities to achieve social aims and for the public good, while also allowing a level of economic freedom in the use of capital. In the United States, private businesses produce most goods and services, and almost two-thirds of the nations economy is driven by consumer spending. The U.S. government has always played a role in the economic affairs of the nation, and over the course of its history, many services began to come under the influence or direct control of the public sector. However, during some periods in U.S. history, it was closer to a true free-market economy, where the private sector was largely unrestricted in its economic activity.

Economic systems can be categorized into four main types: traditional economies, command economies, market economies, and mixed economies. The United States has a mixed economy, which combines elements of the command and market economic models. In terms of consumer goods and business services, the United States economy operates as a free market. In terms of defense and with regard to certain aspects of retirement, the U.S. economy operates as a command economy.