What Are The Advantages And Disadvantages Of Mixed Economy?
In a mixed economy, both free-market and regulatory forces are at work. Some see these forces as being at odds with each other; others feel that the economy works at its peak when both forces are working together. Whatever you believe, many countries, including the United States, have both systems at work simultaneously, and the balance between the two dictates how the economy, overall, will trend. In a free-market economy, balance is maintained strictly by market factors. There is little or no regulation – it is a self-policing group of people and businesses. Sometimes this works, but as 2008 is showing, sometimes it doesn’t. Especially in a market-based economy, where people want to make a profit, some unscrupulous folks may enhance their own profit margin at the expense of others, such as the consumer. The tendency toward profit may weaken the self-policing aspects, and the consumer may not receive the best deal. In a mercantile or socialist economy, the economy is controlled, to so
