Economic Systems: Mixed Economy

Economic Systems: Mixed Economy
A mixed economy is an economic system that incorporates aspects of more than one economic system. This
usually means an economy that contains both private-owned and state-owned enterprises or that combines
elements of capitalism and socialism, or a mix of market economy and planned economy characteristics.
The elements of a mixed economy typically include a variety of freedoms:
 to possess means of production (farms, factories, stores, etc.)
 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
 electricity and other energy services (eg oil, gas)
 water systems for drinking, agriculture, and waste disposal
 subsidies to agriculture and other businesses
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 tarrifs and quotas
and taxes and fees written or enforced with manipulation of the economy in mind.
Social Market Economy
The social market economy seeks a middle path between socialism and capitalism (i.e. a mixed economy) and
aims at maintaining a balance between a high rate of economic growth, low inflation, low levels of
unemployment, good working conditions, social welfare, and public services, by using state intervention.