Mixed Economies

The United States is a quintessential example of a mixed economy, combining both social programs and capitalism.

For example, the US employs social programs such as Medicaid, which provides free healthcare to low-income Americans, food stamps, which subsidize the cost of essential foods, and more. In general, these programs are targeted towards low-income Americans.

Source: Corporate Finance Institute

The primary way these programs are funded is through tax revenues, with the rich paying the highest tax rates. These taxes are used to fund social programs, as well as other policies the government implements (Build Back Better, Inflation Reduction Act, etc.) In other cases, the US remains a capitalist society, as seen with their privatized healthcare system.