Mixed Economy Advantages and Disadvantages
As its name suggests, mixed economy is the economy in which all the related activities to production as well as other activities that are executed by the contribution both of private and government enterprises. It is the form of economy that blends capitalism with different kinds of government regulations. Pure capitalism brings about free interface between customers and business.
However, as time passes, more and more people are wondering what a mixed economy is all about. This has enabled most of them to study and discover about mixed economy advantages and disadvantages. It is a good idea to tackle the advantages and disadvantages of mixed economy so as to know where you stand.
Advantages of Mixed Economy
Quick Economic Development
In a mixed economy, both public and private sectors work equally. The mixed efforts will result to quick economic development. This should be true because the economy’s economic resources are able to efficiently utilize. Furthermore, depletions of the resources are lessened. With these, rapid economic development should be expected.
Lesser Income Inequality
With mixed economy, there will be lesser inequality on income. In addition to this, one’s right to owning a property is also granted. The inheritance law is also applied hence particular members of the society become even richer. The economy’s public sector attempts to offer economic utility to the general public. This therefore leads to reduction in income inequality.
Balanced Regional Development
The country’s planning commission creates policies for the improvement of each region in the economy. In addition to this, the government also attempts to develop every sector of the population and all regions.
Liberty To Own Private Property
People have the freedom to obtain property and stay in their individual names. Hence, the idea to work even more and get even more is present. This assists in the fast economy’s development within the field of industry, agriculture as well as other services.
Disadvantages of International Trade
Fear Of Nationalization
Public and private sector coexists. Government holds the ability to own and nationalize any industry. Therefore, private sector stays on the psychological apprehension that their industry might be nationalized or taken over within the interest of the public.
Lesser Use Of Resources
While the interest of the society is essential within the mixed economy, it results to lesser than maximum utilization of the available resources. This is primarily owed to the mobilization of the resources by the government with the aim of producing the products and services that are generally beneficial for the society instead of producing those products and services that when it comes to economic terms are more useful for the economy.
Using mixed economy has both advantages and disadvantages. So, you may want to make your stand by weighing properly the mixed economy advantages and disadvantages.