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It is because both the private sector and public sector have a say in answering the basic economic questions, thus there will be a degree of high efficiancy (due to the private sector involvement) and social welfare too (due to the public sector involvement).
It allows the Government to intervene when the economy faces market failure. The mixed economic system allows markets to operate freely until it fails to allocate resources efficiently, after this, the government agencies, such as the EU Competition Commission, are able to correct for these failures. If this had been a completely free economic system, Government agencies wouldn't have the means of power to be able to intervene. Furthermore, if it was a centrally planned economic system (communist systems), the Government wouldn't have any drivers behind the intervention which may cause government failure for the market. (Mobeen Iqbal, Bahrain)
Writes ModelCitizen:.
Government bodies are an amazingly consistent display of their failure to utilize resources efficiently. In fact because they do not face monetary profit or loss, they have no idea if what they are doing is efficient. Questions such as what is an acceptable time for people to wait for medical treatment are unable to be answered efficiently by government, and people suffer for their failures. Extreme examples include North Korea when compared to South Korea - there is no difference between the two countries except for the choice of South Korea to all more freedoms to their people. Governments create Propaganda of 'market failures' which typically can only be defined as the price being higher than in the past, so they can 'intervene' to be able to provide an excuse for their existence, and to gain power at the expense of individuals. Societies that have greater government interventions such as regulations, subsidies, taxes, etc, are much worse off economically than those with less interventions.
What else can I help you with?
What economic problems faced the new nation?
They faced multiple problems...though the main ones were national debt,and the arguments over Government power balance.
What economic problem did new nation face?
They faced multiple problems...though the main ones were national debt,and the arguments over Government power balance.
What is the most serious problem that the new national government faced in 1789?
The most serious problem that the new national government faced in 1789 was the lack of a strong central authority and the need to establish its legitimacy. The Articles of Confederation had created a weak central government that lacked the power to enforce laws or collect taxes, leading to economic instability and difficulty in governing the states. The new government had to assert its authority and build a strong foundation for the nation.
Challenges Americans faced in shaping a new government in 1700s?
it was hard
How did the imperialism encourage economic dependence?
What problems faced new nation in Latin America?
What are people entitled to do when faced with an unjust government?
it is the Right of the People to alter or to abolish it, and to institute new Government
How did George Washington solve the problem faced by the new government?
by freeing slaves
What problem did the new federal government face?
One problem that the new federal government faced was that the large population was very hard to manage. The new federal government also had problems with jobs.
Why did government take a great role in the everyday social and economic lives of people during the New Deal?
The major effect of the Great Depression and the New Deal on America was expanded government intervention into new areas of social and economic affairs and the creation of more social assistance agencies at the national level. The relationship between the national government and the people changed drastically. The government took on a greater role in the everyday social and economic lives of the people. The New Deal programs of FDR also created a liberal political alliance made up of labor unions, blacks and other ethnic and religious minorities, intellectuals, the poor, and some farmers. These groups became the backbone of the Democratic Party for decades following the Depression. As the federal government grew with new agencies and reform attempts, the cost of government increased. The growth of the government continued following the New Deal. Perhaps the greatest accomplishment of the New Deal was to ease the economic hardship faced by many during the Great Depression. While not being able to end the Depression, the New Deal did preserve the people's confidence in America's institutions and government. The relief measures of the New Deal were considered a success. Not everyone supported the New Deal. As a formula for economic recovery, the New Deal failed. Many businessmen and financiers did not support the economic measures of the New Deal. With the recession of 1937, many business leaders and politicians claimed that FDR's policies were a failure and the attempt to maintain prosperity during peacetime was not successful at all.
Roosevelt triggered a new economic downturn in 1937 by?
Decreasing government spending.
What were the major economic activities in new Amsterdam New York?
they allowed any religion and they were a self government
List three major problems British government faced in trying to win the french and Indian war?
Land acquisition, political changes, and and economic burdens.
