Which is the More Effective Economy: Planned or Mixed?
Which is more effective - planned or mixed economies?
There are three types of economies in modern world: planned, mixed and market. However, planned and mixed are the most common kinds. Even though command economy has a number of advantages, I believe that mixed economy is better for society.
Mixed economies have advantages of both free enterprise system and the command system. It is based on the free enterprise principle, which means that firms can people in a country with this kind of economy are able to choose which goods and services to purchase. Mixed economies are owned by both private and public sector. The government needs to prevent monopolies and to guarantee that products are safe for consumers and to protect the environment. It also plays a role in the allocation and distribution of resources. Nevertheless, mixed economies still encourage consumption of harmful goods.
In contrast, planned economies are economies, where government decides how all scarce resources should be used. Government also decides what to be produce, how much to produce and how much should be charged for goods and services. Therefore, people receive enough goods and services to enjoy a basic standard of living, but they cannot choose goods by themselves.
Mixed economy attempts to overcome the disadvantages of a market economic system by using government as a regulator of different markets. But most importantly, mixed economies allow much more freedom than command economies.
All in all, each economy has its strengths and weaknesses. As I mentioned earlier, in my view, mixed economy is the most effective one.
There are three types of economies in modern world: planned, mixed and market. However, planned and mixed are the most common kinds. Even though command economy has a number of advantages, I believe that mixed economy is better for society.
Mixed economies have advantages of both free enterprise system and the command system. It is based on the free enterprise principle, which means that firms can people in a country with this kind of economy are able to choose which goods and services to purchase. Mixed economies are owned by both private and public sector. The government needs to prevent monopolies and to guarantee that products are safe for consumers and to protect the environment. It also plays a role in the allocation and distribution of resources. Nevertheless, mixed economies still encourage consumption of harmful goods.
In contrast, planned economies are economies, where government decides how all scarce resources should be used. Government also decides what to be produce, how much to produce and how much should be charged for goods and services. Therefore, people receive enough goods and services to enjoy a basic standard of living, but they cannot choose goods by themselves.
Mixed economy attempts to overcome the disadvantages of a market economic system by using government as a regulator of different markets. But most importantly, mixed economies allow much more freedom than command economies.
All in all, each economy has its strengths and weaknesses. As I mentioned earlier, in my view, mixed economy is the most effective one.