Mixed Economic System

A mixed economic system is an economic system that applies both capitalism and socialism. It is a combination of both public and private enterprise wherein the government and private sectors work hand in hand to achieve a the national economic objectives of the country. In a mix economic system the private sector has freedom in enterprise though the government still maintains its influence as to avoid any economic crisis or downfall. The mixed economic system has different features. It has a social safety net wherein government-funded social systems exist to ensure a minimum level of subsistence for citizens. This offers a wide array of benefits that include health care, funded pensions and minimum wage laws. It also allows private ownership of land and capital wherein an individual is free to own properties and establish his or her own businesses provided that he or she follows the rules and standards imposed by the government and at the same time, a mixed economy also allows government ownership of businesses and industry. As stated above though there is freedom in enterprise, government intervention is still present. The government can intervene to improve the economic outcomes and to consider the welfare of the citizens. The mixed economies also accommodate a wide spectrum of political and economic views. That is why there are variations found in the market. Almost all countries in the world possess a mixed economic system but mainly we have United States of America, Japan, Australia and Germany practicing such economic system. Even just by looking at it, we can observe that these are influential countries which rank well in economic standards. They possess a means of production and participate in managerial decisions. They are able to buy, sell, import and export products. Though they pay heavy taxes, they still reap the rewards. They have library services, roads and transportation services, free educational services, subsidized fees and many more. This type of economic system has also helped increase innovation and creativity. It has also minimized potential abused from a manipulating market.

Definition of Terms: Capitalism - generally considered to be an economic system that is based on private ownershipof the means of production and the creation of goods or services

for profit by privately-owned business enterprises. Socialism advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole.

Social Safety Net - non-contributory transfer programs seeking to prevent the poor or those vulnerable to shocks and poverty from falling below a certain poverty level Market Manipulation - a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency.