Mixed economies

Definition

A mixed economy is an economic system that blends elements of both capitalism and socialism, incorporating private enterprise alongside government intervention and regulation. It aims to harness the benefits of free markets with the social objectives of public services and social equity.

Related terms

Capitalism:

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.

Socialism:

An economic system where the means of production, distribution, and exchange are owned or regulated by the community as a whole.

Market Failure: A situation in which the allocation of goods and services by a free market is not efficient, often justifying government intervention