Mixed economy A mixed economy is an economic system that includes a variety of public and government control, or a mixture of capitalism and socialism. There is not one single definition for a mixed economy, but relevant aspects include: a degree of private economic freedom (including privately owned industry) intermingled with centralized economic planning and government regulation (which may include regulation of the market for environmental concerns, social welfare or efficiency, or state ownership and management of some of the means of production for national or social objectives). For some states, there is not a consensus on whether they are capitalist, socialist, or mixed economies. Economies ranging from the United States to Cuba have been termed mixed economies. The mixed economy as an economic ideal is supported by social democrats as a compromise between socialism and free-market capitalism, among others. OR A "Mixed" Economy A "mixed" economy is a mix between socialism and capitalism. It is a hodgepodge of freedoms and regulations, constantly changing because of the lack of principles involved. A mixed-economy is a sign of intellectual chaos. It is the attempt to gain the advantages of freedom without government having to give up its power. A mixed-economy is always in flux. The regulations never produce positive results, because they always force people to act against their own interests. When a particular policy fails, it is propped up by other regulations in the hopes that more control will produce better results. Sometimes the results are so destructive they must either be removed, or the people must be violently oppressed to make them accept it. OR In a mixed type economy, both the private ownership as well as the state takes part in the means of production, distribution and other types of economic activities. The mixed economy allows private participation in the field of production in an environment of competition with an objective of attaining profit. On the contrary following to the socialism features it includes public ownership in production for maximizing social welfare. Simply in such type of economy there is the presence of private economic freedom with centralized planning with a common goal of avoiding the problems associated with both capitalism as well as socialism. In this system the freedom in the economic activities are influenced by the Government's regulation and licensing policies. OR The mixed economy refers to such an economic system wherein two the sector exist and function for achieving national objectives. The two sectors are the public sector and private sector. Both these sector exist and function for achieving national objectives. Both these sectors make the economic system of the country. In fact the mixed economy is the happy combination of private enterprise with government enterprise on the one side there is freedom of enterprise, private ownership and profit earning. On the other side there is government guidance and control so as to stop evil economic, pressures. In order to remove the effects of the capitalistic economy, mixed economy has been introduced. It prevails in most of the countries of the world. Pakistan has also mixed economy, where government and public sector provide guidance to the private sector. The mixed economy is helpful in increasing national production in the country. 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. Mixed economy is half way house. It is not helpful in achieving optimal use of national resources. 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. OR The mechanism of mixed economy is that some of the tasks are given to private sector while some are left with the government itself. Both are carried parallel with each other. So this give the economy great boost every body is doing its best the government is playing its role and the private sector is contribution its share to the economy. Many of the countries are experiencing the mixed economy because it gives the better economic results. The government is earlier introduced this concept to enhance the economic activities of their countries. Government in the mixed economy plays an important role not only it provides infrastructure facilities to the country but also provide the job opportunity to the people of that country. Now many governments are realizing the importance of free economy where major stress is on the privatized economy and government does not interfere themselves. There is constant trend in experiments of free economy and in many countries it enhance the business productivity and also the economic activity in the country. People then less rely on governments and they took initiative to make money themselves or they find the ways of self employed. Elements of a mixed economy The elements of a mixed economy typically include a variety of freedoms: to possess means of production (farms, factories, stores, etc.) to participate in managerial decisions (cooperative and participatory economics) to travel (needed to transport all the items in commerce, to make deals in person, for workers and owners to go to where needed) to buy (items for personal use, for resale; buy whole enterprises to make the organization that creates wealth a form of wealth itself) to sell (same as buy) to hire (to create organizations that create wealth) to fire (to maintain organizations that create wealth) to organize (private enterprise for profit, labor unions, workers' and professional associations, non-profit groups, religions, etc.) to communicate (free speech, newspapers, books, advertisements, make deals, create business partners, create markets) to protest peacefully (marches, petitions, sue the government, make laws friendly to profit making and workers alike, remove pointless inefficiencies to maximize wealth creation) with tax-funded, subsidized, or state-owned factors of production, infrastructure, and services: libraries and other information services roads and other transportation services schools and other education services hospitals and other health services banks and other financial services telephone, mail and other communication services electricity and other energy services (e.g. oil, gas) water systems for drinking, agriculture, and waste disposal subsidies to agriculture and other businesses government-granted monopolies to otherwise private businesses legal assistance and providing some autonomy over personal finances but including involuntary spending and investments such as transfer payments and other cash benefits such as: welfare for the poor social security for the aged and infirm government subsidies to business mandatory insurance (example: automobile) and restricted by various laws, regulations: environmental regulation (example: toxins in land, water, air) labor regulation including minimum wage laws consumer regulation (example: product safety) antitrust laws intellectual property laws incorporation laws protectionism import and export controls, such as tariffs and quotas and taxes and fees written or enforced with manipulation of the economy in mind.
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