MIXED ECONOMY GROUP MEMBER: 1) OOI TZE YEN ( 20200389) 2) SHELWYN (20200386) Definition of Mixed economy The mixed economy belongs to the economic system. It is a complex formed by a variety of organically connected and interrelated institution , systems, organizations, and methods in order to promote the rational allocation of scarce resources under the fixed conditions basic economic system. By the way, A mixed economy is a mixture of multiple ownership structures, multiple economic entities, resource allocation methods, many market structures and type of distribution methods. Characteristics of Mixed economy Mixed economy system in which certain characteristics of capitalism and socialism coexist, or a mixture of various factors in the economic system under certain specific social systems. Some country proposed from the perspective of public-private mixing that capitalist economy is a mixture of private capitalist economy and socialized economy. After that, Socialized economy refers to traditional enterprises in production, in terms of income and consumption and it refers to public health, low-rent housing and social security and welfare expenditures. The mixed economy refers to a public-private mixed economy in terms of production, income and consumption. By the way, from the perspective of the huge role played by the governments of capitalist countries in the economy, some other research has proposed that the government and private individuals have an effect on the economy at the same time. The disadvantages of mixed economy The disadvantages of mixed economy are frequently providing excessive amount of tax liability. After that, this status is the liability of public sector duty to produce the market place accost able to purchaser and producer. Which means that it will require financial support through 3 to 2 entities. By the way, the majority common ways to reach this outcome by taxation and the mixed economy will tend to tax firm and institution from distinct level, according to many government participations it will constantly decide a bigger field for responsibility. Social service and infrastructure require interest that everyone need, however high amount of tax will turn into disadvantages. Furthermore, the disadvantages of mixed economy are under the conditions of an imperfect legal system, the development of a mixed economy has not only increased the difficulty of government management, but also increased the probability chance of financial risks. Besides that, the personal risk is too big, these disadvantages not only limit the application of mass production technology, but also cause market failure and economic fluctuations to a certain extent. In addition, the large income gap between wealthy and poor. Thus, some income distribution is not getting restrained and monopolistic industries is out of control, the salary adjustments of public servants and public institutions have not been truly separated. On the other hand, excessive of job consumption is not restricted and the transparency of personal income is not high. Generally, the distribution order is chaotic, the management system is imperfect and the government is not using tax leverage to adjust the income gap, so this is the most important issue in mixed economic system that needs to be taken seriously and resolved. The advantages of mixed economy Advantages of a mixed economy is that the free market aspect allows prices of goods to be determined by supply and demand. Moreover, resources, goods and services are therefore channeled where they are most useful. Besides that, advantage of the mixed economy system is its capitalist approach to providing the hardworking workers or the most efficient enterprises in the market. By providing a not genuine market, mixed economies let the producers with the highest profits to rise to the peak and continue generating capital which in turn, gives consumers the best prices. By allowing a competitive field, mixed economies also nurturer an environment of efficiency and innovation, having companies compete for creating the finest products or services for consumers which will benefit the consumers as well as the market. Hence, the most effective producers are the ones getting the profits and capital to continue their creation and innovation in cost-efficient ways to satisfy consumer's needs. Thus, another massive advantage of a mixed economy is that it still aims at areas like aerospace, defense and technology that a market economy may forsake. In this process, the government is able to more effectively enlarge programs and product in these field while letting private enterprises focus on other sectors. And, in spite of the fact that perhaps more contended, a powerful government presence in the economy ensures those smaller enterprises are not outlaw from competition due to large conglomerates and prevents global monopolies that may present complication to entry in certain markets. Country that used mixed economy The example of country that use mixed economy are Iceland, Sweden, France, UK and China. Only by strengthening the self-discipline mechanism of enterprises and improving their own management level in country economy they can win the competition and achieve the purpose of asset appreciation. Reference link 1. https://learn.robinhood.com/articles/3bZxgN1hZUnEjDlvmw5Rda/what-is-a-mixed-economicsystem/ 2. https://cleartax.in/g/terms/mixed-economic-system 3. https://futureofworking.com/8-advantages-and-disadvantages-of-the-mixed-economy/ 4. https://www.investopedia.com/terms/m/mixed-economicsystem.asp#:~:text=A%20mixed%20economic%20system%20is,order%20to%20achieve%20social %20aims. 5. . https://www.economicshelp.org/blog/glossary/mixed-economy/
