Mixed Economy
A mixed economy is an economic system that combines elements of a market economy with elements of a planned economy. It is a system in which both the private sector and public sector exist, and both play a role in the production and sale of goods and services. The private sector is made up of businesses owned by individuals and organizations, while the public sector is made up of government-owned businesses and services. In a mixed economy, the government plays a role in regulating the economy, providing public goods and services, and redistributing income.
History of the Term
The term “mixed economy” was first used in the early 20th century by British economist John Maynard Keynes. Keynes argued that a mixed economy was the best way to ensure economic stability and growth. He believed that the government should intervene in the economy to ensure that it functions properly and to provide public goods and services. This idea was later adopted by many countries, including the United States, which adopted a mixed economy after World War II.
Comparison Table
| Market Economy | Mixed Economy |
|---|---|
| Private sector dominates | Private and public sectors both play a role |
| Little government intervention | Government intervention is present |
| Little redistribution of income | Redistribution of income is present |
Summary
A mixed economy is an economic system that combines elements of a market economy with elements of a planned economy. It is a system in which both the private sector and public sector exist, and both play a role in the production and sale of goods and services. The government plays a role in regulating the economy, providing public goods and services, and redistributing income. For more information about mixed economies, visit websites such as Investopedia, The Balance, and The Economist.
See Also
- Market Economy
- Planned Economy
- Command Economy
- Capitalism
- Socialism
- Laissez-Faire
- Public Goods
- Redistribution of Income
- Economic Regulation
- Economic Growth
