Advantages of Mixed Economic
The advantages of a mixed economy are many. Depending on the ratio of capitalistic elements to socialist or mercantile elements, there are many freedoms in a mixed economy. People may go into business for themselves, decide what they will produce or sell, and set their own prices. Business owners and merchants pay taxes, but they reap the benefits of those taxes through social programs, roads and other infrastructure elements, and other government services. The mixed economy is helpful in increasing national production in the country.
Both ublic and private sectors work hard to bring about more production. The problems created by free enterprise and too much public control are solved through mixed economy. It provides freedom of enterprise ownership and profit earning as well as social welfare and political freedom. And all the national recourses are utilized under mixed economy. Advantages of mixed economy in that, a verity of goods are available.
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We can find the role of co-operatives in the field of cultivation diary, poultry. The use of intoxicants and drugs is prohibited and the government never allows black marketing.
Income disparities can be checked. The basic rational behind under mixed economy is to raise social welfare of the masses removing the pitfalls attached with the free enterprise. Public services are provided for every one Mixed economies do have benefits. They are much more stable when compared to Free Market systems, and government regulations can prevent inflation and exorbitant investment, thus inhibiting the inevitable cycles of recession and prosperity. The only reason why Mixed economies are affected by the current recession is the fact that the U.
S. a very right-leaning Mixed economy, has succumbed to sub-prime mortgages, resulting in foreclosures, bailouts, and bankruptcy. Another major benefit is a social safety net. For example, Free Health care, education and transportation are all things that people take for granted that are provided to us, free of charge (except in taxes, of course). Finally, Mixed economies also waste less resources in general and are more environmentally conscientious. Private companies dont really care if they are harming the environment, as long as they are making money.
Of course, if being more environmentally conscious attracts more consumers, that’s what they will do). In a Mixed economy, this is where government regulations come into the picture. The government might decide to reduce their environmental footprint, or might be pressured into such policies by lobby groups or environmental activists/organizations. People have more influence on government policies, which results in changes government regulation which affects what products are produced, how they are produced, and how they can be disposed of.