2006-07-13 20:11:38 · 5 answers · asked by @annie*_* l 1 in Social Science ➔ Economics
The reason, as I understand it, is to permit free enterprise by private corporations while at the same time keeping state-funded or other government controlled elements vital to the infrastructure.
2006-07-13 20:25:03 · answer #1 · answered by Jim T 6 · 1⤊ 0⤋
the term "mixed market economy", is simply socialism, but that term is unpalatable to the west, so they renamed it. there are three economic systems: Capitalism, fascism (socialism), and communism. Capitalism is a system where the means of production are in private hands and property rights are upheld; Fascism is a system where the operational control of the means of production are left in private hands but the state remains superior to all and can control the economy through many ways such as interest rates, expropriation, price setting, quotas etc. there is "money" in a fascist system but its value is selected by the state; Communism is a system where the means of production are under state control, and there is no money, goods are distributed by state prerogative.
2006-07-15 04:50:12 · answer #2 · answered by iconoclast_ensues 3 · 0⤊ 0⤋
first of all mixed economy means a good mix of capitalist & socialist economies
in democratic countries there is more need of mixed economy for better social as well as financial development
the greatest example is India it has a mixed economy & is worlds largest democratic country
2006-07-14 02:07:17 · answer #3 · answered by Truly Madly Deeply 5 · 0⤊ 0⤋
Because not everyone is smart enough to realize that the free-market is best; not everyone is an economist. Thankfully, there aren't many communist whack-jobs either. So it's a balance.
2006-07-15 06:06:57 · answer #4 · answered by Chx 2 · 0⤊ 0⤋
Co-operation of Government (public sector) with private sectors.
Even social welfare is a reason.
2006-07-14 03:50:51 · answer #5 · answered by Kaushika R 1 · 0⤊ 0⤋