American philosophy is comprised of three fundamental schools namely pragmatism, existentialism and Freudism. Pragmatism came into existence in the United States with the motto of regarding efficiency as a measure of all actions that helped Americans achieve much success. However, pragmatism has many limitations such as heightening materialistic value, individual experience, etc. Existentialism was not born in the United States, but its presence in the United States could be attributed to a movement in response to science and technology; existentialism demonstrates human values of individual life, but since it aims to seek the perfect human being, it has revealed its own limitations when the goal cannot be achieved. Freudism was established in Austria and afterwards brought to the United States; it is characterized by heightening the biological ego that has helped Americans get a better insight into their character. But placing the utmost importance on instinctive factors has shown the limitations of this theory.