What Are The Benefits And Drawbacks Of Market And Mixed Economies?

In a market economy, the income of an individual may rise or fall depending on his success. In other words, an individual does not have to depend on the society or community to prosper for his own success. Such an economic system allows for individual gain and random prosperity. On the other hand, in a mixed economy, the success of an individual depends solely on the prosperity of the community. Mixed economies keep significant loss or gain to a minimum as the entire economy seeks to adapt to changes in the environment and macroeconomic variables. If the status of the community improves, the individuals in the community also prosper.

Market

Benefits - Individuals have all the control and can make all the decisions.
               - Success lies solely on the individuals choices

Drawbacks - Unemployment is high
                      - There are no tax breaks
                      - The income depends on the individuals success

Mixed

Benefits - Individual and Government views are present
               - They are helpful in increasing national production
               - Provides freedom of business ownership and profit earning
               - Social Welfare and Political Freedom are also offered
               - There are a variety of goods available
               - As well as government support and guidance
               - Mixed economies try to subsidize (rent) industries rather than own then
               - There are tax breaks and other incentives offered
               - All individuals Prosper as the community prospers

Draw backs - Not helpful in achieving optimal use of natural resources
                       - They suffer from the drawback from both market and planned economies
                       - If the community begins to suffer, all individuals are affected

Hope that helps :) ~ Jamie Hudson