A mixed economy is the combination of capitalism and socialism. It implies that part of the economy is left to the free market, and part of it is controlled by the government. In reality, most economies are mixed, with varying degrees of state intervention. The mixed economies start from the premise of allowing the private company to execute most of the businesses. At that time, the government intercedes in specific territories of the economy, for example, regulation and spending money on public services.
Advantages of Mixed Economy
Mixed economies allow many more freedoms than command economies, for example, the flexibility to have production methods; participate in administrative elections; to buy, sell, finish and contract as necessary; and for the representatives to compose and challenge gently. Mixed economies have a high level of participation and state spending, which drives libraries financed with taxes, schools, medical centers, streets, public services, legitimate aid, social assistance and standardized savings.
Different confinements are made in business for the most notable benefit, for example, environmental regulation, labor regulation, antitrust and intellectual property laws. The perfect combination of these freedoms and confinements is destined to guarantee the most extreme way of life for the population in general.
Examples of Mixed Economies
Proportion of public expenditure as% of GDP
- Iceland (57%)
- Sweden (52%)
- France (52.8%)
- United Kingdom 47.3%
- United States 38.9
- Russia 34.1
- China: 20% of GDP
- Hong Kong 18.6%
All the previous economies are mixed. Part of the economy is supervised by the government, the rest is left to private companies and individuals. Be that as it may, there are varying degrees of state intervention. The European economies, for example, Sweden and France have a generous level of social security spending. Education and medical care are free at the point of EE. UU In the USA UU., Public spending as a percentage of GDP is lower, however, you must pay for medical care. As economies accumulate, the government regularly takes a greater supply of aggregate spending. Developed countries, for example, in Western Europe, often choose to provide state welfare assistance and greater government regulation on the environment and business conditions.