US economic system is based on the free market system where demand and supply forces are active enough to take economic decisions. It leads to rise in inequalities in society where only small section of society enjoys the huge section of GDP.
1% population of country, takes home more than 20 % wealth. Thus, inequality is massively high. Thus, here role of government comes into play, now government has to take care of downtrodden section of society. US government has moved from police state to welfare state. Now government is making expenditure on education, health and other welfare schemes such as insurance.
Thus, government massively doing welfare activities to make society better and conflict free.
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