What are the disadvantages of a mixed economy?
Mixed economies come with some disadvantages that include it being hard to know how much government should control. Government borrowing is a disadvantage along with merchants having tax rates that are too high.
Some advantages include: It mixes the benefits of capitalist nature of private companies and socialist nature of the government. Looks to balance economic growth of the economy and income Mixed economy allows individuals to run their business and make profits but contribute towards society. Some disadvantages include: Goods and services are produced to benefit the society rather then to benefit the economy. Favoritism and bureaucratic nature are prevalent in a mixed economy. For more information…
Advantages of mixed economy include that a state provides the essential services, there is consumer choice, competition keeps prices low and private sector encouraged for profits. Disadvantages of mixed economy include less efficient than private sector, heavy taxes reduce incentives to work hard or make profits and there is excessive control over business activity which can discourage enterprise and add costs.