Market and Mixed Economies
Both the market and mixed economies present advantages and disadvantages to individuals who are in the field of trading. First of all, it is important to provide a brief overview of what a market economy and a mixed economy is. A market economy, also known as free economy, is a system in which the production and trade of goods depend solely on a business where a free-price system exists. Therefore, the success of a business in a market economy depends on how a business is managed. On the other hand, a mixed economy depends on the general economic condition of the area or state it belongs to. That is, it is affected by the economic performance of a state or nation in the local or international market.
Many nations, such as the U.S. And Canada promote mixed economy. Comparing the advantages and disadvantages of both the market and mixed economy, I find that a mixed economy is a better system. What are the drawbacks of a market economy? Issues against the market economy suggest that it creates chaos in trading. Because of the free-price system, trading exists in various degrees thus causing a lack of organized trading system. Issues also indicate that market economy creates monolopies that threaten the competitiveness of goods and services. Therefore, the solution to such problem that market economy critics find is to support mixed economy because they need a structured and organized system of trading. But what can a mixed economy provide to the economic condition of a nation? To the proponents of mixed economy, this system can prevent unstable economic conditions because the economic system is controlled. A mixed economy presents both the faces of a free-market and capitalism where people have the right to choose which type of economic system they wish to implement in trading. Additionally, even if free-market also exists in a mixed economy, it is still limited which therefore continues to present a controlled economic condition.
