The Most Efficient Form of Economy

Topics: Economic system, Mixed economy, Planned economy, Economies / Pages: 3 (675 words) / Published: Apr 1st, 2014
What is the most efficient economic system?

Barack Obama, the 52nd president of the United States expressed the statement "It 's time to fundamentally change the way that we do business in Washington. To help build a new foundation for the 21st century, we need to reform our government so that it is more efficient. That will demand new thinking and a new sense of responsibility." An economy is the wealth and resources of a country or region, especially in terms of the production and consumption of goods and service. Economy branches off into many economic systems. An economic system is the way of organizing the production and consumption of goods. Currently, there are four main economic systems. These systems consist of a traditional economic system, where the decisions about what to produce and how to produce them are based on customs, beliefs, and traditions. Command economy, where the decisions on what to produce and how to produce them are made by the central government. Market economy, where the decisions on what to produce and how to produce them mainly rely on markets. And mixed economy, a combination of market and command. I believe that from these systems, the most efficient form of economy is a mixed economy. A mixed economic system is the most efficient form of an economic system because this system allows many more freedoms than command economies. Mixed economy offers freedoms 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. A mixed economy will keep means of productions efficient, and will also keep businesses running smoothly because of the ability to fire and hire as needed. Having more freedoms in mixed economies than other economies will be efficient because it keeps the citizens happy. Citizens that stay happy will produce less complaints to the government, and the government will be able to


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