What is Mixed Economy | Types | Capitalist and Socialist Economy

 Mixed Economy Mixed economy is an economy which combines the element  of both the capitalist and socialist economies. It attempts to combine the best features of both capitalism and socialism while excluding the Demerits of Both.   Two types of Mixed Economy      1. Government does not directly undertake Production activity. This exists in most of the developed countries such as the USA, UK, etc.     2. Where Government not only Regulates the Private Sector, But also Participates in the Production activities.     Features of Mixed Economy Co - existence of Public and Private Sectors. Features of both Capitalism and Socialism. Government regulates and controls the Private Sectors. Price mechanism Profit Motive. Capitalist Economy   In Capitalist  form of economic system the means of Production and Distribution are Privately own,  and Production is guided Largely through Operation of markets.    ...
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What is economic system

Economic System

The economic system of the government Prevailing in the region where the business exists as well as the Political economics Scenario of the world at large have a bearing on commerce and business.
 
  • International Business Rules
  • Currency convertibility
  • Forex rules

The second world war that bought many nations to the brink of economic ruin faulted the world and bought about a shift  in the basic tenets of of economic theory. It was widely agreed that a good economic Policy must be based on the three Points.

We need to Provide welfare benefits to people who are deprived of regular income because of some reason or the other

The desirability of maintaining a judicious balance between Public and Private Sector. ( This implies the crucial sector must be kept under Government Control ).

The necessity to Provide a macroeconomic environment which would ensure the Growth of Business, Trade, Commerce and Economy of the Nation.

 The two most Powerful institution in a Society today are Business and Government. Where they can meet on Commerce Ground - otherwise together they determine Public Policy, both Foreign and Domestic, For a Nation.  

Location: Shamli, Uttar Pradesh 247776, India

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