A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
Mixed economies are less efficient than pure free markets, but proponents of government interventions argue that the base conditions required for efficiency in free markets, such as equal information and rational market participants, cannot be achieved in practical application.
A mixed economy is an economy organised with some free market elements and some socialistic elements, which lies on a continuum somewhere between pure capitalism and pure socialism.
Mixed economies typically maintain private ownership and control of most of the means of production, but often under government regulation. Mixed economies socialize select industries that are deemed essential or that produce public goods.
All known historical and modern economies are examples of mixed economies, though some economists have critiqued the economic effects of various forms of mixed economy.
From the Book – ‘ Know Everything about Corporate Social Responsibility ‘
Available on Amazon.in
Also Read:
- What is Crony Capitalism?
- What Is Capitalism?
- What is Socialism?
- What is Free Enterprise?
- What is Third World?
- What is the Fourth World?
- What is Sustainable Economic Growth?
- What is Inclusive Growth?
(India CSR)
