Variants of Industrialized and Capitalist American Economy - Essay Example

The American economic system, which is undeniably doing well for example is mixed and is hinged on the operations of both the private and public sectors. Similarly, nations that fall within West Europe, Pacific Asia, and China have embraced trade and industry systems that work for them and guarantee their strong economic growth, while some nations in East Europe such as Russia and Africa, have rather failed to embrace ideal commerce strategies, for most of their economies are yet to register substantial growth.

In the process of using the available means to yield goods and services, both the private and public industries within America have to deal with both the product and the resource markets. The product market is majorly classified into four categories, which include the competitive segment, as well as those sectors that exhibit monopoly, oligopoly, and monopolistic competition. Similarly, the resource market is classified into labor, capital, and land. Presently, the labor market is experiencing a decline in unionization and government intervention. The capital market also comprises of financial intermediaries like banks, with the public sector accounting for 20% of the economy.

Labor unionization in America has registered a significant decline over the last fifty years with the percentage declining from 35% in the 1950s to 11.3% in 2012. The implementation of unfriendly labor laws is one of the reasons for the decline in labor unionization, for legislations such as the Taft-Harley Act of 1947 and the Right-to-Work law, which has been implemented in over 20 States have made it difficult for unions to perform their duties freely. Another reason for the decline is the process of establishing unions, as the duration between petitioning the National Labor Relations Board and the union election is always long and allows employers to campaign against the formation of Unions.