Brenden D. Peyton C. Jose B. Bose N.
What is an Mixed Economy?
- Economy that has some combination of traditional , command, and market economies; also system combining private and public enterprises.
- Includes and reflects the idea of both capitalism and socialism within the government
- Taxes used to collect revenue to pay for state goods and services for the enterprise
- Mixed economies have a high level of state participation and spending, leading to the construction of public places and services.
Advantages and Disadvantages
- Regulates the abuse of monopoly power, by limiting the abuse of overly high prices.
- Regulation and taxation of imports and exports with negative externalities.
- The state provides the essential services for goods and services under the free market, including public goods, national defense, education and health care.
- Managing the economy can be arduous whether or not the governmet should have any intervention.
- Heavy taxes reduce incentives to work hard or make profits for investments.
- Excessive control over business activity and discourage an enterprise
Is an Mixed Economy Sustainable?
Yes, mixed economies have been shown to include a variety of freedoms, it allows competition between producers with regulations in place to protect the society as a whole.
- Welfare for the poor
- social security for the aged and infirm
- labor and consumer regulation, minimum wages regulations
- private businesses can decide how to run their business
- Less income inequality
Karl Marx and Adam Smith
White Nerds Attempting to Rap (Mixed Economy) Stupid and Funny Music Video