What are the advantages and disadvantages of a mixed economic system?

A mixed economic system brings the advantages of free markets and also government intervention. However, there are also concerns about the sustainability and efficiency of a mixed economic system. A mixed economic system synthesizes the elements of a market economy and the elements of a command economy.

What is a mixed economy?

Mixed economies promote the value of organizations which are the most efficient. The only way to reach this status is to invest in research and development. Innovation is highly prized in this economy type because its consumers demand the best at all times.

Why is a mixed economy better than a market economy?

Fourth, it automatically allocates capital to the most innovative and efficient producers. They, in turn, can invest the capital in more businesses like them. A mixed economy also minimizes the disadvantages of a market economy. A market economy could neglect areas like defense, technology, and aerospace.