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Mixed Economy: Combines capitalism and socialism., image, image, image,…
Mixed Economy: Combines capitalism and socialism.
Advantages :check:
customers get the best value for their dollar
encourages innovation to meet customer needs more creatively, cheaply, or efficiently
automatically allocates capital to the most innovative and efficient producers
The expanded government role also makes sure less competitive members receive care
More employment opportunities: With more job opportunities available it would give people the chance to develop new skills
Disadvantages :red_cross:
High Taxes
Government intervention
Unemployment
Threat of Nationalization
if the market has too much freedom, it can leave the less competitive members of society without any government support
The defense industry could become a government-subsidized monopoly or oligarchy system
Successful businesses can lobby the government for more subsidies and tax breaks
How it works :question:
A mixed economy is an economy organized with some free-market elements and some socialistic elements, which lies on a continuum somewhere between pure capitalism and pure socialism.
Mixed economies typically maintain private ownership and control of most of the means of production, but often under government regulation.
Mixed economies socialize select industries that are deemed essential or that produce public goods.
Characteristics of Mixed Economies :silhouettes:
The law protects ownership of private property
Everyone is free to live, work, produce, buy and sell whatever they choose (as long as it's legal)
Self-interest drives the buying and selling of goods and services, including employment
The law protects competition
Prices are allowed to float along with supply and demand
The primary role of government is to make sure that everyone has free access to a free market. Congress passes regulations to make sure no one is manipulating the market
The government has a large role in the military, international trade, and national transportation
Examples :star:
https://youtu.be/9EseSEgLsvU
