mixed economies notes
mixed economies notes Economics
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This 3 page Class Notes was uploaded by DERRICK SHIJOSO on Wednesday August 3, 2016. The Class Notes belongs to Economics at 1 MDSS-SGSLM-Langley AFB Advanced Education in General Dentistry 12 Months taught by prof. derrick in Summer 2016. Since its upload, it has received 13 views. For similar materials see microeconomics in Business at 1 MDSS-SGSLM-Langley AFB Advanced Education in General Dentistry 12 Months.
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Date Created: 08/03/16
WHY MANY COUNTRIES HAVE ADOPTED THE MIXED ECONOMY SYSTEM Mixed economies allow many more freedoms than command economies, such as the freedom to possess the means of production; to participate in managerial decisions; to buy, sell, fire, and hire as needed; and for employees to organize and protest peacefully. Mixed economies have a high level of state participation and spending, leading to tax-funded libraries, schools, hospitals, roads, utilities, legal assistance, welfare, and social security. Various restrictions on business are made for the greater good, such as environmental regulation, labor regulation, antitrust and intellectual property laws. The ideal combination of these freedoms and restrictions is meant to ensure the maximum standard of living for the population as a whole. The Advantages of a Mixed Economy In a mixed economy, private businesses can decide how to run their businesses (e.g. what to produce, at what price, who to employ, etc.). Consumers also have a choice in what they want to buy. In this system, there is also less income inequality. Monopolies, market structures that are the only producer of a certain product, are allowed under government watch so they do not make it impossible for entrepreneurs in the same industry to succeed. More specifically: The elements of a mixed economy have been demonstrated to include a variety of freedoms: to possess means of production (farms, factories, stores, etc.) to participate in managerial decisions (cooperative and participatory economics) to travel (needed to transport all the items in commerce, to make deals in person, for workers and owners to go to where needed) to buy (items for personal use, for resale; buy whole enterprises to make the organization that creates wealth a form of wealth itself) to sell (same as buy) to hire (to create organizations that create wealth) to fire (to maintain organizations that create wealth) to organize (private enterprise for profit, labor unions, workers' and professional associations, non-profit groups, religions, etc.) to communicate (free speech, newspapers, books, advertisements, make deals, create business partners, create markets) WHY MANY COUNTRIES HAVE ADOPTED THE MIXED ECONOMY SYSTEM to protest peacefully (marches, petitions, sue the government, make laws friendly to profit making and workers alike, remove pointless inefficiencies to maximize wealth creation). They provide tax-funded, subsidized, or state-owned factors of production, infrastructure, and services: libraries and other information services roads and other transportation services schools and other education services hospitals and other health services banks and other financial services telephone, mail, and other communication services electricity and other energy services (e.g. oil, gas) water systems for drinking, agriculture, and waste disposal subsidies to agriculture and other businesses government-granted monopoly to otherwise private businesses legal assistance government-funded or state-run research and development agencies Such governments also provide some autonomy over personal finances, but include involuntary spending and investments, such as transfer payments and other cash benefits, including: welfare for the poor social security for the aged and infirm government subsidies to business mandatory insurance (e.g. automobile) They also impose regulation laws and restrictions that help society as a whole, such as: environmental regulation (e.g. toxins in land, water, air) labor regulation, including minimum wage laws consumer regulation (e.g. product safety) antitrust laws intellectual property laws incorporation laws protectionism import and export controls, such as tariffs and quotas taxes and fees written or enforced with manipulation of the economy in mind From the above reasons, it's evident that most countries have adopted the mixed economies since it comes with a lot of benefits. WHY MANY COUNTRIES HAVE ADOPTED THE MIXED ECONOMY SYSTEM
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