mixed economic system

These factors increase efficiency, initiative, innovation and productivity. The economic activities take place in a planned manner. October 18, 2019 By Hitesh Bhasin Tagged With: Management articles. One of the important features of a mixed economy is control over economic inequality. In mixed economies, every citizen of a country has equal right to own private property and to use that property in any way he wants if he is not using his property to do any illegal work. Poor people are provided various benefits to help them to lead a normal life, whereas rich people are imposed with taxes on their property and wealth. Mixed economy is the combination of capitalism and socialism. A mixed economy contains both government-owned and privately-owned enterprises or is a combination of the characteristics of planned (Command) economy and market economy or is a combination of the characteristics of socialism and capitalism. A mixed economy is a system that combines characteristics of market, command and traditional economies. Under the mixed economy, the advantages of both capitalism and socialism are incorporated and at the same time their evils are avoided. Goods are produced as per the wishes of the consumers, which results in consumer’s sovereignty in a mixed economy. Joint sector is one where both Government and private individuals establish an organization jointly by contributing the necessary capital. This sector is created so that financial assistance can be provided to cooperative societies like agriculture, warehousing, etc. In mixed economy, freedom of enterprise and profit motive are the important features. The private sector constitutes an important part of the mixed economy and considered as an important instrument of economic growth. Private businesses sometimes cause trouble for the economy: #3. are owned by the public sector. In mixed economies, the government makes sure that there is less gap between rich and poor people. Private individuals and firms own private sector industries. I love writing about the latest in marketing & advertising. However, the government makes sure that the economy of the country is constantly booming and ensure that economic power is distributed equally. The private sector usually deals with IT works, Consumer goods, agriculture, and other construction work. Under mixed economy, individual rights are protected. In a mixed economy, the government tries to reduce the gap between the rich and poor population of the nation. In a capitalistic mixed economy, the control on the production is completely under the control of the private sector. The objective and targets of economic planning also may not be achieved in a mixed economy. In a liberal socialistic mixed economy, the government takes deliberate decisions to alter the market forces so that the economy of the country keeps boosting. There are certain aspects of the private sector which are regulated and controlled by the state government. In the mixed economy, both public as well as private sector exist together and work with each other in harmony. In the next sections, you will earn the important features, advantages, and disadvantages of a mixed economy. Government has designed a licensing system to control the activities of entrepreneurs that means they are required to acquire a license from the government to start a new business. The mixed economy focuses on making people richer, and there is lesser income inequality among the people of a nation as compared to the other economies. The motive of the business concerns is profit but coupled with the objective of social welfare. One of the important features of a mixed economy is that it encourages private sector investment to boost capital formation in the country. So there will be economic stability in mixed economy. Countries like the United States of America (USA) and United Kingdom (UK) have mixed economies.

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