Question

What is a mixed economy? Why would society want to consider such a system? Does it work anywhere in the world today?

Answer 1

In a mixed economy free market co-exists with state-controlled enterprises. A mixed economy is guided by a State Plan to develop the country as a whole.The mixed economy protects property rights. Private enterprises are free to operate according to the principles of supply and demand.

The mixed economy offers plenty of advantages. The State intervention protects the interests of people. The State through the Public Distribution System ensures that needy people get essential commodities. The State runs the defence sector, railways, buses, airlines. The private sector also competes with the bus sector and airlines. People get the benefit of free enterprises, as well, state-run services which is more affordable.

India has a system of mixed which has worked well since independence. India has one of the highest economic growth in the Asian region.