Mixed Economy: Pros And Cons Of A Mixed Economy

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A definition of economy can be, the activities by which a geographic area will maintain itself through the production, and consumption of its goods and services. Goods are those products that can be seen or touched, such as a house or a taco. Services are intangible processes that someone or something can do to create products, such as a carpenter building a house or a chef cooking food. Three of the economic systems are capitalism, a socialism, and mixed economies. There is no “pure” capitalism or “pure” socialism economy; they overlap with the result being a mixed economy. When examining these three economies it becomes apparent there are pros and cons to each of them. Capitalism is an economic system that privately owns and controls its capital goods, and production of goods and services for personal profit and without government involvement. Capital goods are those tangible items that are used to produce goods or services, such as machinery or office buildings. Ideal Capitalism has four components, first that there is private ownership of the means of production, second that there is a…show more content…
In favor of mixed economy include reducing the amount of government regulation and control, government regulation can protect its citizens from abusive monopolies, it allows people to work hard and reap the benefits of their labor, encourages entrepreneurship, and the industries that are left to private firms tend to be more efficient than if it were controlled by the government. While some of the cons of a mixed economy include being difficult to know how much government intervention is needed or wanted, more government means more taxes, and cost of production may not be entirely covered by the supplier. As a mixed economy is a creation of the good aspects from both capitalism and socialism, so it is also a mix of pursuit of personal profit and a pursuit of collective goals. United States is considered a mixed
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