A
mixed economy is an economy that adopts both ideals from Command and Free
market economies to get the best of both worlds. The consumer and the
government both control the market and both can set prices. The products are
produced by a balance of both enterprises and government companies with
enterprises setting the workers wage but it must be higher than the minimum
wage which is usually set by the government.
Many
Countries adopt a mixed economy for many reasons here are a few.
Firstly, The
pros of a free market economy can often compliment the cons of command economy
and vice versa. With a free market economyit encourages the poor and rich class system so politicians add in poor
help to decrease the chances of a poor and rich person class system. Also if
the government controls the entire market people would riot in the streets and
make an uprising. If the government controlled everything the not so important
items would not be produced meaning less brands and less individuality.
This is why the mixed economy is adopted throughout many countries.