Q 5-What do you know of open market economy.
What are the characteristics of mixed economy?
It is the economic system that carries the characteristics of both capitalism and socialism. The system works well when the evils of both systems are excluded. It was gradually introduced by those who were against socialism, capitalism or both
CHARACTERISTICS OF MIXED ECONOMY
Under the system key and basic industries are nationalized. In addition, public utility companies as electricity, gas, and phone remain in the public sector.
Long Range Planning:
Mixed economy follows socialism in that the former adopts the system of long range planning. In formerly U.S.S.R, seven-year plans were made. In Pakistan, five-year plans were devised. Now this practice has come to an end.
This blended economy system is divided into two parts
a- Public/government sector
b- Private sector
Public sector does not allow the interference of the private sector but the government can enter the private segment of the society.
Better Economy System:
The system can become ideal if all the good attributes of both socialism and capitalism are adopted and evils dropped.
Middle Of The Road Policy:
Capitalism and Socialism are extremely opposite to each other. Mixed economy offers a mild system abandoning the extremities of both capitalist and socialist economies.
Democracy or Dictatorship:
Mixed economy flourishes under democratic setup of the government.
Countries with long history of dictatorship cannot progress under the mixed economic system as the success of the economy depend on democracy.
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