The World 's Largest National Economy Essay

1364 Words Nov 16th, 2015 null Page
For decades, the U.S. economy has remained the world’s largest national economy, constituting roughly 22% of the world’s nominal GDP in 2014 [1]. Its stability and efficiency is paramount to the economies of other countries. For example, as seen from the recent financial crisis of 2007-2009, a slowdown in the U.S. economy can have significant implications and detrimental spillovers to many of the world economies. Hence, to analyze other world economies successfully, it is imperative to have a firm understanding of their economic dependence with the U.S. economy. The U.S. economy is predominately a market economy. Although it allocates most of its resources through the private sector, a substantial percentage of resources are contrarily allocated through the public sector, representing roughly 34% of projected U.S. GDP in 2015. 18% of which are federal government expenditures [2]. But why allocate these resources through the government if Adam Smith’s concept of the invisible hand leads the private sector to allocate resources so efficiently? Throughout the paper, we will delve into the roles that the federal government should play in the economy, the roles that they actually play in the economy, and, then, we will conclude with a policy recommendation that has been designed to significantly improve the health care industry and its underlying FDA drug-approval process.
Section 2 - The Role of the U.S. Government In certain instances, private sector allocation of…

Related Documents