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The Social Balance - The Mixed Economy.
- Words:
- 4911
- Submitted:
- Mon Feb 02 2004
Have a little read: ... The Social Balance The Mixed Economy We have looked at the inherent limitations and defects of the unregulated market mechanism of the extreme laissez-faire capitalist economy. Such an economy had a high potential for achieving freedom and efficiency but at the cost of considerable inequality. Moreover, in the absence of government intervention the freedom includes freedom to starve and the efficiency is only imperfectly realised - for example, no allowance is made for divergencies between social and private cost. At the opposite extreme, the socialist command economy has a potential for reducing inequality, but at the cost of loss of freedom and inefficiency, and, in practice, the potential for quality is not necessarily realised. Thus, the course of wisdom would point to some sort of mixture of the two. There is a sense in which all economies are mixed economies because neither the capitalist laissez-faire economy not the socialist command economy exists in
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