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====Post–World War II==== At the time of the United States' founding, the economy was predominantly one of agriculture and small private businesses, and state governments left welfare issues to private or local initiative. As in the UK and other industrialized countries, [[Laissez-faire|laissez-faire ideology]] was largely discredited during [[Great Depression|the Great Depression]]. Between the 1930s and 1970s, fiscal policy was characterized by the [[Keynesian consensus]].<ref name="Weeks">Weeks, J. (2007). Inequality Trends in Some Developed OECD Countries. In J. K. S. & J. Baudot (Eds.) ''Flat world, big gaps: Economic liberalization, globalization, poverty & inequality'' (159-176). New York: Zed Books.</ref><ref name="Thomas">{{cite news |url=http://www.newsweek.com/id/117854/page/1 |last=Thomas |first=E. |date=March 10, 2008|title=He knew he was right|magazine=Newsweek|access-date=2008-04-19|archive-date=2008-04-05|archive-url=https://web.archive.org/web/20080405101829/http://www.newsweek.com/id/117854/page/1}}</ref> After the "[[Reaganomics|Reagan revolution]]" in the early 1980s, laissez-faire ideology once more became a powerful force in American politics.<ref name="Clark">Clark, B. (1998). ''Political economy: A comparative approach''. Westport, CT: Preager.</ref> While the American [[welfare state]] expanded more than threefold after WWII, it held at 20% of GDP from the late 1970s to late 1980s.<ref name="Alber">{{Cite journal|doi=10.1093/oxfordjournals.esr.a036484|title=Is there a crisis of the welfare state? Crossnational evidence from Europe, North America, and Japan|year=1988|last1=Alber|first1=Jens|journal=European Sociological Review|volume=4|issue=3|pages=181–205}}</ref><ref name="Barr">Barr, N. (2004). ''Economics of the welfare state''. New York: [[Oxford University Press]] (US).</ref> In the 21st century, [[Modern liberalism in the United States|modern American liberalism]], and [[Conservatism in the United States|modern American conservatism]] are engaged in a [[Bipartisan coalition in Congress|continuous political battle]], characterized by what ''The Economist'' describes as "greater divisiveness [and] close, but bitterly fought elections."<ref name="Economist">{{cite news |url=http://www.economist.com/Countries/USA/profile.cfm?folder=Profile%2DPolitical%20Forces|title=Economist Intelligence Unit. (July 11, 2007). ''United States: Political Forces''.|access-date=2008-06-03 |newspaper=The Economist}}</ref> Since 2016, the United States has been recognized as a [[Illiberal democracy|flawed democracy]] in the ''[[Democracy Index]]'' by the [[Economist Intelligence Unit]], partially due to increased [[political polarization]].<ref>{{Cite news|last=Francis|first=Ellen|date=February 10, 2021|title=Global freedoms have hit a 'dismal' record low, with pandemic restrictions making things worse, report says|language=en-US|newspaper=[[The Washington Post]]|url=https://www.washingtonpost.com/world/2022/02/10/global-democracy-index-2021-pandemic/|access-date=2022-02-16|issn=0190-8286}}</ref><ref>{{cite web|title=Democracy Index 2021: the China challenge|url=https://www.eiu.com/n/campaigns/democracy-index-2021/|access-date=2022-02-16|website=[[Economist Intelligence Unit]]|language=en-GB|archive-date=November 8, 2022|archive-url=https://web.archive.org/web/20221108091515/https://www.eiu.com/n/campaigns/democracy-index-2021/|url-status=dead}}</ref> According to the [[V-Dem Democracy indices]] the United States were 2023 the 27th most electoral democratic country and 3rd most participatory democracy in the world.<ref name="vdem_dataset">{{cite web |last=V-Dem Institute |date=2023 |title=The V-Dem Dataset |url=https://www.v-dem.net/data/the-v-dem-dataset/ |access-date=14 October 2023}}</ref> In foreign affairs, the United States generally pursued a [[nonintervention]]ist policy of "avoiding foreign entanglements" before [[World War II]]. After the war, when America became a [[superpower]], for many decades the country embraced [[Internationalism (politics)|internationalism]], seeking allies to contain [[Communism]] and foster economic cooperation.
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