There are several economic theories that the nations use. Sometimes nations take bits and pieces of all three. There is Fascism, Capitalism, and Socialism. The United States uses all three.
Fascism is a partnership of privately owned Big Business with Government. That was the reality in Nazi Germany where Hitler did what was best for Big Business and Big Business did the Best it could for Nazi Germany. Hitler's strength came from the Big Money that Big Business could give him and his government. Hitler provided Big Business with the least expensive work force, Slave Labor that did not require pension plans because the Big Businesses were told to work the slaves to death because there were plenty more coming from the Eastern Battle Fronts.
The Republican Party in the United States represents Fascism at its finest in the modern world. Big Business supports the Republican Party and the Republican Party supports Big Business. A perfect example of this is the Nuclear Industry that is horribly corrupt and has killed millions of Americans with particulate radiation contamination all over the country. The Government lies like hell to cover up for the Nuclear Industry. Another example is the Industry that profits from war. The Republican Party always finds ways to get us into wars so that those businesses can make Billions in profit at Taxpayer expense. The Republicans go out of their way to ensure that Big Business can have cheap labor, hence the strong Republican support for locating factories in States that are not friendly to unions and their activities. (That is not quite labor from the Eastern War front, but there is the issue of locating factories outside of the United States, like in Mexico.) The Republican Party has taken it a step further in that they also run the Big Banking Industry in America and in the world. Our Big Banking Industry is corrupt as hell and is stealing from the American Public because of all of their abuses of the bank support system in this country. The Democratic Party is almost in lock step with the Republicans in what they allow to happen. Both Political parties are corrupt.
Capitalism is a system that allows for private ownership of companies that do not control the Government.In present practice, government also only regulates the businesses to ensure fairness of competition and fairness of hiring, and safe working conditions and healthy products. Basically, Government is there to ensure the common good, but not order business around.
Socialism is a system in which government provides for the welfare of the people so that they are not abused by businesses. Socialism ensures retirements, health care, child care and even tries to ensure employment though that has been found to be impossible if people do not want to work. In some cases Government owns the businesses. Examples of Socialism in America are Social Security, Medicare, Food Stamps, Welfare, and Employment Services. Communism (Weird Socialism) as it has unfolded has become a dictatorship (Fidel, Mao, Josef,...) or a system of group leadership (Like China after Mao died.)
A combination of all three is good, but we need to eliminate the Fascist abuses to our system that have been brought to us by the major businesses of this land.