Mixed economic system

It is believed that the oldest system of the economy is traditional. It is such a way of shaping economic life, in which capital and land are in common possession, and production issues are solved on the basis of traditions that pass from generation to generation.

A centrally-regulated system is based on state monopoly. With such an economic structure, the state organizes production and disposes of economic resources, according to the plan adopted in advance. Economic management is carried out using command and administrative methods (control, orders, incentives, punishments and other).

The market economy is a structure in which the decisions of consumers and producers are able to determine the distribution of labor, financial and material resources. Thus, a self-regulating and rapidly developing structure is formed.

Countries with mixed economies (Japan, USA, Italy, Sweden, Great Britain and others) are distinguished by the presence of highly efficient production in a complex with a high degree of satisfaction of the needs of the population. In these countries, the advantages of a market, command and traditional economy are combined. For example, in Japan national customs and traditions are of great importance.

Thus, the mixed system of economy is a system based on different forms of ownership. Its development is regulated by civilized solutions, traditions and the market.

The mixed economic system is characterized by the fact that most of the economic goods and resources are owned by private owners, and the smaller by the state. In various countries, the percentage of intervention in the economy of the state is from 10 to 50%. In other words, the state controls a certain percentage of services and goods or has a certain share of economic benefits, which it distributes at its own discretion.

The mixed economic system assigns a significant role to consumers, producers and the state in solving production problems. With such an interconnected structure, conditions are created to achieve high efficiency in production. The abundance of economic goods, freedom in production and consumption, high level of income and people's lives in a state with a mixed economy clearly confirm the advantages of the system.

Within the framework of this structure, economists listen to the conclusions of economic activity, it implements economic principles and laws. Thus, the success of the structure is formed.

The mixed economic system includes national models of the formation of the economy. These include, in particular, the Japanese, Swedish, American, German model. Their implementation in practice led to the formation of an "economic miracle", manifested in the rapid development of the economy in the respective states.

Experts consider the rather promising forms for the formation of the economy to be a "social market economy" based on the model of Ludwig Erhard. Such an economy is a free competition in combination with ensuring the protection of society from the negative impact of a market economy. Thanks to the responsibility and activity of all participants of the model, consent and social peace are ensured with the existing order.

The mixed economic system develops according to the definition of the state, which directs and regulates the processes taking place in it. This is done through laws, taxes and other methods of indirect, direct and legal management.

Along with this, the state contributes to the creation of conditions for the functioning of the entire mixed system as a whole.