Mixed economies

There is a third type of economy involving a combination of market forces and central
planning, called mixed economies.
Mixed economies may have a distinct private sector, where resources are allocated primarily
by market forces, such as the grocery sector of the UK economy. Mixed economies may also
have a distinct public sector, where resources are allocated mainly by government, such as
defence, police, and fire services. In many sectors, resources are allocated by a combination
of markets and panning, such as healthcare and, which have both public and private

provision.

In reality, all economies are mixed, though there are wide variations in the amount of

mix and the balance between public and private sectors. For example, in Cuba the
government allocates the vast majority of resources, while in Europe most economies
have an even mix between markets and planning.
Economic systems can be evaluated in terms of how efficient they are in achieving
economic objectives.

http://www.economicsonline.co.uk/Competitive_markets/Economic_systems.html

A "mixed" economy is a mix between socialism and capitalism. It is a hodgepodge of

freedoms and regulations, constantly changing because of the lack of principles
involved. A mixed-economy is a sign of intellectual chaos. It is the attempt to gain the
advantages of freedom without government having to give up its power.
A mixed-economy is always in flux. The regulations never produce positive results,
because they always force people to act against their own interests. When a particular
policy fails, it is propped up by other regulations in the hopes that more control will
produce better results. Sometimes the results are so destructive they must either be
removed, or the people must be violently oppressed to make them accept it.
http://www.importanceofphilosophy.com/Bloody_MixedEconomy.html
Mixed Economy
Mixed economy is combination between capitalist and socialist economy. It is an
economy system where price mechanism and economic planning authority are used
simultaneously. Hence there are both private and public ownership of means of production and
distribution. Household and firms and some other take some decisions by planning authority.
Features of Mixed Economy
1) Public sector: all decision regarding what, how and for whom to produce is taken by the state. Public
utilities such as road construction, power supply, water supply are in the side of public sector. These
public utilities are operating for societal welfare maximization not for profit motives.
2) Private sector: There is private sector in which production and distribution of goods and services are
carried out by private enterprise. Profit motive is the guiding principle in this sector.
3) Joint sector: there is joint sector where both state and private jointly run enterprise. It is organized on
the basis of a joint stock company where majority of shares are held by the state.
4) Freedom and control: in mixed economy there is every freedom to own private property, earn profit, to
consume, produce, distribute and to have any occupation of choice without limitations until and unless
such possessions have an adverse effect on public welfare so that state intervenes in order to control and
regulate the situation.
5) Economic planning: There is a central planning authority in a mixed economy. In this system,
economy operates on basis of some economic plan. All sectors of economy function in accordance with
the objectives, priority and targets laid down in the plan.

Advantages of Mixed Economy

1) Best allocation of resources: since mixed economy incorporate the goods features of both capitalism
and socialism, the resources of the economy are utilized in best possible manner.
2) General balance: mixed economy maintains a general balance between the public and private sectors.
There is competition as well as co-operation between the two sectors which is conducive atmosphere for
achieving a high rate of capital accumulation and economic growth.

3) Welfare state: mixed economy contains all the features of the welfare state that provides social
services such as health care, unemployment pay etc. to people who need them. Therefore, there is no
exploitation either by the capitalist under free enterprise economy or by the state under centrally planned
economy.
4) Stability: it ensures stability by reducing high unemployment and income inequality associated with
capitalist economy.

Disadvantages of Mixed Economy

1) Non-cooperation between the two sectors: experience has shown that in mixed economy private and
public sector do not see eye to eye with one another. They are at loggerhead because of their disparity in
motives and as such they are not cooperative with one another.
2) Inefficient public sector: public sector of mixed economy is a bit burden on economy because it works
inefficiently. The bottlenecks, which militate against efficiency of public sector, are bureaucratic control,
over staffing of personnel, red-tepism, corruption, and nepotism among others. These bring about decline
in production and huge loss.
3) Economic fluctuation: The experience of the working of mixed economic system in developed
countries also reveals that they have not been able to remove economic fluctuation.

http://www.princeton.edu/~achaney/tmve/wiki100k/docs/Mixed_economy.html

http://www.s-cool.co.uk/a-level/economics/free-market-v-commandeconomies/revise-it/theoretical-economic-systems

MIXED ECONOMIES
A mixed economy is a mixture of a pure free-enterprise market economy and a command economy.
Nearly every country in the world operates a mixed economy although the "mix" can change. There is a
private sector and a public sector in the economy
In recent years many command economies have become mixed economies. Examples include countries
that were part of the former Soviet Union. To become a mixed economy, the role of the market and the
private sector of the economy must be increased. This can be done in a variety of ways - listed below:

Privatisation of state industries

De-regulation of markets promoting increased competition through the entry of new firms

A gradual ending of state subsidies

Encouraging foreign investment into the economy

Mixed Economic System

Features:
- Economic decisions are taken by the price mechanism system and also by the
state
- The private business sector operates along the lines of the free market
economy, where the price mechanism determines allocation of resources.
- The aim of the private sector is to maximise profits while the aim of the public
sector is to maximise social welfare
- The public sector produces goods and services that the private sector is unable
or unwilling to produce, with a bureaucratic set up like the planned economy
Examples:
Caribbean Region
United States of America
Advantages:
1. The state can intervene in areas of the economy through the passing of laws
to protect citizens from unfair trading practices.
2. Both the government and the private sector can cooperate in offering certain
services; e.g. transportation, health care.
Disadvantages:
1. Too much government regulation may dampen the free enterprise spirit.
2. Some state-owned industries are allowed to operate inefficiently, thus
wasting resources.
3. Where government intervenes in the market by setting maximum and
minimum prices, this may cause excess demand or supply, which may be
difficult to regulate in the long-run.
4. Since the private sector helps to answer the economic questions, there can
be the creation of monopolies.
5. Inequitable distribution of wealth can also arise.
Decision makers in this economy:
1. A Consumer is one who uses goods and services to satisfy his/her wants. The
goal of the consumer is to maximise his/her satisfaction.
2. A Firm is a producer of goods and services. The goal of the firm is to
maximise profits.

3. A Factor owner is one who owns the various factors of production. These are
the resources needed to produce goods and services to satisfy wants.
4. The government functions as a guide in economic activities of a country.
Governments intervene by either nationalising or regulating policies of
industries.

https://wikis.engrade.com/economicsystems

- the allocation of resources

- the organization of production
- the distribution of finished goods and services
- the promotion of economic progress
- the maintenance of economic stability

What to produce?
Concerns allocation of resources among alternatives, i.e. the economy must
allocate the varieties of goods and services which yield the greatest satisfaction to
the consumers.
How to produce?
This deals with utilizing the most efficient process to produce the goods and
services. Production is said to be inefficient when it is possible to reallocate
resources and, as a result, produce more of at least one good without producing
less of any other good.
For whom to produce?
The ideal distribution of goods and services is equal distribution among all members
in the economy. However, in the real world this is never achieved.

Kegiatan ekonomi yang vital dan menguasai hajat hidup orang banyak dikuasai
oleh negara.

Kegiatan ekonomi ayng dijalankan oleh pihak swasta terbatas, yaitu pada bidang
yang tidak menguasai hajat hidup orang banyak.

Mekanisme kegiatan ekonomi yang terjadi di pasar ada campur tangan

pemerintah agar tidak terjadi persaingan dan saling merugikan.

Peranan pemerintah bersifat mendorong, membimbing, dan mengawasi dan

memberikan bantuan kepada sektor swastaa dalam perekonomian.

Hak milik perorangan atau swasta diakui, tetapi penggunaanya tidak boleh
bertentangan dengan kepentingan rakyat banyak.

Ciri dari sistem ekonomi campuran adalah :

1. Merupakan gabungan dari sistem ekonomi pasar dan terpusat
2. Barang modal dan sumber daya yang vital dikuasai oleh pemerintah
3. Pemerintah dapat melakukan intervensi dengan membuat peraturan, menetapkan
kebijakan fiskal, moneter, membantu dan mengawasi kegiatan swasta.
4. Peran pemerintah dan sektor swasta berimbang Penerapan sistem ekonomi
campuran akan mengurangi berbagai kelemahan dari sistem ekonomi pasar dan
komando dan ditujukan untuk meningkatkan kesejahteraan rakyat.
Secara umum saat ini hampir tidak ada negara yang murni melaksanakan sistem
ekonomi terpusat maupun pasar, yang ada adalah kecenderungan terhadap ekonomi
pasar seperti Amerika, Hongkong, dan negaranegara eropa barat yang berpaham
liberal, sementara negara yang pernah menerapkan ekonomi terpusat adalah Kuba,
Polandia dan Rusia yang berideologi sosialis atau komunis.
Kebanyakan negara-negara menerapkan sistem ekonomi campuran seperti Perancis,
Malaysia dan Indonesia. Namun perubahan politik dunia juga mempengaruhi sistem
ekonomi, seperti halnya yang dialami Uni Soviet pada masa pemerintahan Boris Yeltsin,
kehancuran komunisme juga mempengaruhi sistem ekonomi soviet, dari sistem
ekonomi terpusat (komando) mulai beralih ke arah ekonomi liberal dan mengalami
berbagai perubahan positif.
1.Pengertian Sistem Ekonomi Campuran

Sistem Ekonomi Campuran adlah sistem ekonomi yang menghendaki kegiatan

ekonomi ditangani dengan cara kerja sama antara pemerintah dan swasta. Dalam
sistem ini, sektor swasta dan pemerintah sama-sama diakui keberadaanya. Pemecahan
masalah perekonomian mengenai barang apa yang akan diproduksi dan berapa
banyaknya, ditangani bersama-sama antara pemerintah dan swasta. Sistem ekonomi
campurang merupakan perpaduan antara sistem ekonomi liberal dan Terpusat,
sehingga dengan sistem ekonomi campuran ini diharapkan tercapai efisiensi,
pemerataan, dan keadilan pembangunan ekonomi serta dapat melindungi ekonomi
dalam negeri. Sistem ekonomi ini banyak dipakai oleh negara-negara berkembang.

Menurut Lemhannas (1989), ada 8 kekuatan yang mempengaruhi sistem ekonomi yang di
terapkan/dipilih oleh suatu negara, yaitu :
Falsafah dan ideologi
Akumulasi ilmu pengetahuan yang dimiliki masyarakatnya
Nilai-nilai moral dan adat kebiasaan masyarakatnya
Karakteristik demografinya
Nilai estetika, norma-norma serta kebudayaan masyarakatnya
Sistem hukum nasionalnya
Sistem politiknya
Subsistem-subsistem sosialnya, termasuk pengalaman sejarah pada masa lalu serta
uji coba yang dilakukan masyarakatnya dalam mewujudkan tujuan ekonominya.

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