Talk about the economic system in china and then the U.S Essay

Talk about the economic system in china and then the U.S - Essay Example The growth rate of China economy is higher than other developed countries due to restructuring of the old economic structures and policies. The revamp and growth was necessitated by the enabling environment that was created by the economic class. For instance, they shifted the cities and urban areas to be wealth creation centers while using the rural areas for manufacturing (Ikenberry, 27). The economic wealth and prosperity is however shared or distributed by the state to all the devolved units of government. This is to say that the government has a hold on the economic patterns and regulates the ownership of private businesses. The regulation bby the government is aimed at balancing the socialistic aspect and capitalism. In principle, the economy is structured or macro-organized in such a way that wealth created in a particular area must live positive externality on the lives of that area, either through employment or construction of infrastructure which are all marks of economic growth and excellence. The United States of America has a free market economy where the activities of the buyers or consumers and the sellers or the producers determines the equilibrium. Equilibrium refers to the price level in the money and commodity markets and the profits. In principle, the government hold in the process of wealth creation is very minimal. Therefore, individual owners of business who could also be called capitalists have the free power to control their business make profits and use the proceeds thereafter as they please (Bruinsma, 9). There are economic policies such as the minimum wage policy and the trade unions which strive to ensure that the business owners or capitalists operate in a fair manner. The trade unions or the labour organizations are also a critical component of the economic system because they present a room and chance for collective bargaining so that the capitalists do not misuse their