The American Economic Model

Introduction

The American economic model is the capitalistic model.

The economy in the US is mixed with the American culture, civilisation and identity. The Americans believe that there is no equivalent of economic achievement anywhere else in the world. The American identity is based on economic achievement and on their economic system. Understanding this system, its creation, the beliefs and values that founded this system, is something necessary to understand the American identity. But this system is not universal. To talk about the economic model is to talk about exchange, about our vision of work, wealth, success and failure. The economic system within which we live has a great impact upon the way we live.

Definition of capitalism

The capitalist system is the putting-in-common of economic resources with the aim of creating new wealth. At the very origin, the capitalist system is a generous idea and isn’t very different from communism. The fundamental difference is that the driving force behind the collective use of these resources is self-interest. This gives us the difference between a market society and capitalism. The market society existed long before capitalism.

I) Foundations

1) The ethic of prosperity

Capitalism is the product of western cultures.
Protestantism is said to be at the origin of capitalism. According to the Protestants, personal gratification should be connected with the public good. If you have wealth, you should use it to produce more wealth.
The Calvinist ethic creates the mental structures that are necessary for capitalism.

Calvinism : noun the teachings of John Calvin, laying emphasis on mankind's inability to repent and believe in Christ without God's help, and on predestination.

But capitalism already existed in Europe before Protestantism.
Protestantism emerges along with rationality. The Protestants criticized the Catholic Church for having a magical vision of the world