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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 were some of the economic problems in the roman empire in the third century?
Government problems
What economic problems did the new government face with Jefferson and hamilton?
The biggest economic problem for Alexander Hamilton and his new government was recovering from the 54 million dollar federal debt arising from the Revolution. The states owed another 25 million. Confederate paper money was worthless.
What was to blame for the economic and other problems in the US after the revolution?
A Weak Central Government
What was the blame for economic and other problems in the US after the revolution?
A Weak Central Government
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.
Which the following describes a major legacy of the Progressive era?
That the government can act to fix the economic and political problems.that the government can act to fix economic and political problems - novanet
What were the most important issues facing the new federal government?
The biggest and most important issues the new federal government had to contend with were economic problems. The Revolutionary War debt was huge and individual states didn't feel they should be taxed to pay for it.
How did the war affects Americas economic situation?
It created economic problems .
Why did the federal government begin to turn its attention away from the reconstruction in the south?
Major economic problems began to take hold in the 1870s.
How did the Roosevelt's ideas on the nation's economic problems differ from previous presidents?
If the private sector could not solve the problems than government would;
What was the direct result of the great depression?
The establishment by the federal government of safeguards against future depressions.
