Amadeo     1     Definition

• Mixed Economy is a combination of market, command, and traditional economies.
• It seeks to have all the advantages of a market, command, traditional economy with little of the disadvantages.
• Global Economy is primarily free-market based.

Amadeo     1     Policy in the United States

• The Constitution protects the United States in the requirements of a market economy which include ownership of private property, limitations on government interference, and promoting innovation.
• It also encourages the government to promote general welfare in this market.
• Many of Americas tradtions still guide economic policy in the mixed economy.

Amadeo    1     Mixed Economy Characteristics

• It has centralized planning and government ownership of industries, which includes aerospace, energy production, and banking.
• It encourages the governments to centrally manage health care, welfare, and retirement.
• Some follow traditions that were ingrained even it they weren't aware. Also still fund and give power to royalty and emperors over that country.

Amadeo     1     Government Access

• Governments have a command role that help safeguard the people and market all in itself.
• It includes the military, international trade, and national transportation in all of the US.
• The government role increased on the priorities of the people.

Amadeo     1     Mixed Economies in Different Countries

• Difficult to avoid mixed economies because thanks to globalization.
• The country is best served through international trade which include oil from Saudi Arabia, products for the people from China, and food from the U.S.
• When buinesses within any counrty are allowed or encourage to export the government within that country must give up some control to all free market forces to take over.
• Regulations and agreements were put in place.

Amadeo     2     Market Economy Characteristics

• Six characteristics are: The ownership of private property that is protected by law. Everyone is free to live, work, produce, buy, and sell whatever they choose. Buying and selling of goods and services, including employment, driven by self-interest. Competition is protected by law. Prices are allowed to float freely. Role of the government is primarily to make sure everyone has equal access to all information.

Amadeo     2     Comand Economy

• There is no centeral economic plan, a Federal budget which outlines the governmet's priorities.
• It includes a way to simulate economic growth.
• Resources are allocated through the use of taxes which disagrees with some activities, but some encouagre other activities.
• This outline the priorities for the country.

Amadeo     3     Traditional Economy

• The United States is moving away from a traditional economy because it is losing many traditions.
• Many economic policies are still in place were formed and guided by old traditions.
• This economy is based on agriculture, hunting, and fishing.
• Even though U.S. agribusiness is run by a few global coporation it is still supported by federal subsides.

Amadeo     3     Advantages of a Mixed Economy

• In this economy you can efficiently allocate goods and services when needed, and allow prices to measure supply and demand.
• It rewards efficient producers with more profit by ensuring that their customers are recieving the best value when buying.
• It encourages innovation that meets the customers needs in all ways.
• It allows an automatic allocated capital to innovative and efficient producers.

Amadeo     3     Disadvantages of a Mixed Economy

• It can have to much free market that it rewards the competitive members of an society and leave others without government support.
• Planning could mobilize forces for defense purposes, which is creating a government subsidized monoply or an oligarchy system.
• It could also put the country in debt which would slow down economic growth in the foreseen future.
• Already successful businesses could lobby the government for more subsidies and bigger tax breaks.
• The role of the government of the free market would mean not enough regulation in the economy.