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The Mixed Economic System In The United States

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All countries around the world have some form of economic system that is there to provide a basis on which their economies can grow and prosper. Current economic systems are based on growth to remain stable to be successful. Sustainable economies are when the output is steady over the long term but may change in the short term an economic system that does not promote growth is going to collapse. In economics capitalism and socialism influence views on how the economy should be managed. Capitalist argue that the economy should encourage innovation and freedom to provide people with the highest standard of living possible, and socialist argue that the economy should provide a degree of equality so the pie is evenly split and everything is fair.…show more content…
Economic policies are there to ensure that the economy will remain stable in the future and also ensure that everything is being run fair and everyone is getting equal opportunity. Mixed economies can enact policies that benefit both the consumer and business. In a mixed economy the government and market work together to determine the best policies for future long term stability and growth. During a recession in a mixed economy the government will put more money and resources into the public sector, such as repairing roads, building schools and hospitals and create more jobs. The government will also lower taxes so consumers have more money to spend. (http://econsguide.blogspot.ca/, 2009). Private sectors main interest is to make a profit and not the state of the economy such as inflation and unemployment is not their concern although they contribute to it. (http://econsguide.blogspot.ca/, 2009). The government acts as a referee carefully enacting policies that benefit the greater good and improve the economic stability. In times of slow growth and recession the government can take control and regulate the economy to prevent further slow growth and bring the economy back to a stable state. At the same time corporations are free to manage their own business provided they agree to the rules and laws set by the government. A mixed economy has more
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