What Do You Know About The Mixed Economy?

There is another type of economies besides market economy and command economy. This one is called mixed economy. The mechanism of mixed economy is that some of the tasks are given to private sector while some are left with the government itself. Both are carried parallel with each other. So this give the economy great boost every body is doing its best the government is playing its role and the private sector is contribution its share to the economy. Many of the countries are experiencing the mixed economy because it gives the better economic results. The government is earlier introduced this concept to enhance the economic activities of their countries.

Government in the mixed economy plays an important role not only it provides infrastructure facilities to the country but also provide the job opportunity to the people of that country. Now many governments are realizing the importance of free economy where major stress is on the privatized economy and government does not interfere themselves. There is constant trend in experiments of free economy and in many countries it enhance the business productivity and also the economic activity in the country. People then less rely on governments and they took initiative to make money themselves or they find the ways of self employed.

The mixed economy refers to such an economic system wherein two the sector exist and function for achieving national objectives. The two sectors are the public sector and private sector. Both these sector exist and function for achieving national objectives. Both these sectors make the economic system of the country. In fact the mixed economy is the happy combination of private enterprise with government enterprise on the one side there is freedom of enterprise, private ownership and profit earning. On the other side there is government guidance and control so as to stop evil economic, pressures. In order to remove the effects of the capitalistic economy, mixed economy has been introduced. It prevails in most of the countries of the world. Pakistan has also mixed economy, where government and public sector provide guidance to the private sector.

The mixed economy is helpful in increasing national production in the country. Both public and private sectors work hard to bring about more production. The problems created by free enterprise and too much public control are solved through mixed economy. It provides freedom of enterprise ownership and profit earning as well as social welfare and political freedom. And all the national recourses are utilized under mixed economy.   

Mixed economy is half way house. It is not helpful in achieving optimal use of national resources. The mixed economy suffers from the drawbacks of both the capitalism and the socialism. Mixed economy seldom achieved progress. It suffers from continues back wardness. Under mixed economy wastage of different types occurs in the economy.