Mixed Economy

1824 Words Feb 22nd, 2013 8 Pages
Mixed Economy
A mixed economy is an economic system that incorporates aspects of more than one economic system. This usually means an economy that contains both privately-owned and state-owned enterprises or that combines elements of capitalism and socialism, or a mix of market economy and planned economy characteristics. This system overcomes the disadvantages of both the market and planned economic systems.
Features
* Resources are owned both by the government as well as private individuals. i.e. co-existence of both public sector and private sector. * Market forces prevail but are closely monitored by the government.
Advantages
* Producers and consumer have sovereignty to choose what to produce and what to consume but
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Both public and private sectors work hard to bring about more production. The problems created by free enterprise and too much public control are solved through mixed economy. It provides freedom of enterprise ownership and profit earning as well as social welfare and political freedom. And all the national recourses are utilized under mixed economy.

DISADVANTAGES
Mixed economy is half way house. It is not helpful in achieving optimal use of nationalresources. The mixed economy suffers from the drawbacks of both the capitalism and the socialism. Mixed economy seldom achieved progress. It suffers from continues back wardness. Under mixed economy wastage of different types occurs in the economy http://www.blurtit.com Advantages & Disadvantages of Mixed Economic System
By Tasos Vossos, eHow Contributor
A mixed economic system refers to the combination of private and public control within a given economy. The concept behind this system is taking advantage of private enterprises' productivity, while regulating the economy to avoid crises and achieve equal distribution of wealth. You can see examples of mixed economies across Europe, Australia and the United States; however, even traditionally socialist economies have adopted free market values, such as the New Economic Policy in the early Soviet Union and "socialism with Chinese characteristics." All cases of mixed