Mixed economy

   

In economics and politics, a mixed economy is an economy which combines regulated capitalism, a limited number of planned economy institutions, as well as certain socialist measures and state ownership of some sectors of the economy, such as:

  • social security
  • environmental regulation
  • labor regulation
  • product safety regulation
  • progressive taxation
  • public education
  • health care
  • public owned firms that produce goods and services, not just public services

Most democratic countries, including the United Kingdom, have mixed economies. The United States has somewhat of a mixed economy, but it is closer to a pure market economy than any other country in the Western world. The term mixed economy is generally only used when an economy has reasonably significant portions of both socialism and capitalism.

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