Mixed Economy

By: Suvash Timalsina (142)

What is Mixed Economy?

Country in between neither command nor market economy, it is called a Mixed Economy

Classification based on how much government intervention there is

Holds socialism philosophy

First thought presented by British Economist John Maynard Keynes in his book, The General Theory of Employment, Interest and Money, published in 1936, during the Great Depression

Keynesian economics advocates a mixed economy – predominantly private sector, but with a role for government intervention during recessions

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Brief history

Why Mixed Economy? To adequately meet the demands of

their citizens; Consumer and National Interests

Are closely tied to the principle of Laissez Faire Laissez Faire, is the theory or system of

government that upholds the autonomous character of the economic order, believing that government should intervene as little as possible in the direction of economic affairs. (Dictionary.com)

Room for flexibility

Example of Economies…

Pure Market Economy

Pure Comman

d Economy

U.S.A

Mexico

Sweden

Russia

China NorthKorea

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•In the U.S. the government accounts for about 1/3 of all U.S. economic activity•In The China the government accounts about 2/3 of all economic activity

Economic condition of USA

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Scores 76 in economic freedom Ranked 2nd among counties of north America

LIMITED GOVERNMENT

REGULATORY EFFICIENCYEFFICIENCY

OPEN MARKETS

Property Rights85.0Freedom From Corruption71.0

Government Spending47.8Fiscal Freedom69.3

Business Freedom90.5Labor Freedom95.5Monetary Freedom75.0

Trade Freedom86.4Investment Freedom70.0Financial Freedom70

Comparison of USA And China

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Conclusion

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Needed after country is in right track Not to be a thought in developing

phase, rather a goal of an economy

Thank you

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