MIXED ECONOMIC SYSTEM

Definition: A mixed Economic System may be defined as one in which private and public ownership of the means of production and distribution exist side by side and in which government participates extensively in the regulations, management, and supervision of Economic activities in the country. The system is therefore, a mixture of the elements of both system, the decisions on what, how many and how to produce goods and services and their distribution are taken by both the private and public sectors. It is difficult to see a country that partises pure capitalism or Socialism.

   Majority of the developing countries of the world practise the mixed Economic System. In these countries, the private sectors play more significant role in their Economic development while in others, public sectors have more influential participation. 

FEATURES OF MIXED ECONOMIC SYSTEM

1. Government participates extensively in the regulation, management and supervision of Economic activities in the country. 
2. The decision on what, how many and how to produce goods and services and their distribution are taken by both private and public sectors.
3. Economic freedom of production, distribution and consumption exist in mixed Economic System. 
4. The public sector exists side by side with the private sector. 
5. It is also characterised by freedom of choice to Consumers, workers and owners of property.
6. There are areas of the economy in which the state has exclusive right of production and distribution of goods and services. 
7. Economic rivalry exists in areas of the economy in which the state and private individuals participate. 
8. The public sector of the economy produces public goods, while private sector produces private goods.
9. There is highly developed occupational specialisation.
10. Profit motive is the guiding principle in the private sector. 

ADVANTAGES OF OR ARGUMENT FOR MIXED ECONOMIC SYSTEM

1. Mixed Economic System combines the best of both capitalism and socialism.
   
2. The system encourages private individual initiatives.
3. It creates room for the growth of entrepreneurship.
4. The system provides the people with alternative choice.
5. There is no room for both state and private monopoly. 
6. The system encourages Economic competition among producers and consumers. 
7. Government adopts some regulatory measures to prevent the exploitation of the citizens. 
8. There is an equitable distribution of wealth between those in the public sector and the private sector. 
9. Job security is assured in the system. 
10. The system is assured in the system.
11. The system encourages hard work and Economic development. 

DISADVANTAGES OF OR ARGUMENT AGAINST MIXED ECONOMIC SYSTEM

1. The mixture of the two incompatible systems of capitalism and socialism creates more problems than it is intended to solve. 
2. In a mixed Economic System such as the one adopted in Nigeria, both the public and private sectors tend to promote capitalism with its evils.
3. Labour tends to be exploited and denominated in this system by both public and private sectors.
4. The gap between the rich and the poor in both the public and private sectors in mixed Economic System tends to be as wide as in capitalism.
5. In this system, the state and individual goals tend to be in serious conflict. 
6. In both the public and private sectors, profit rather than the welfare of the people determines the extent of production and distribution of goods and services.
7. Wealth is not equitable distributed in mixed economy. 
8. The acquisitive tendencies common with capitalism are also found in public and private sectors of mixed economy.
9. It promote corruption and immoral activities.
10. It encourages Economic and political instability.

                 Revision Questions

• What do you understand by free or Capitalist Economic System? What are the arguments for or against such Economic System?
• What is Socialism?  What are the features of Socialism?
• Distinguish between capitalism and socialism.
• Explain the meaning and features of mixed Economic System.
• Make a case for and against Socialism.
• What is market economy? Highlight the features of a market economy.

         GOOD LUCK