Increase of unemployment:

Rate of unemployed people increases. Business wantsto maximize profit by

minimizing costs. They get minimum number of staffs.
Mixed Economy
Mixed economy is a term used to describe an economic system, where
someimportant production is undertaken by the state, directly or through its
nationalizedindustries, and some is left for private enterprise. In a mixed type
economy, boththe private ownership as well as the government takes part in the
process of production, distribution and other types of economic activities.The mixed
economy allows private participation in the field of production in anenvironment of
competition with an objective of attaining profit. On the contraryfollowing to the
socialism features it includes public ownership in production for maximizing social
welfare.In a mixed economy there is flexibility in some areas and government
control inothers. Mixed economies include both capitalist and socialist economic
policiesand often arise in societies that seek to balance a wide range of political
andeconomic views.
Characteristics of Mixed Economy:

Consumers are given choices about the products they buy.

Business owners can sell their products and keep the profits.

Government provides services for people in remote areas.

Individuals are free to use their money or resources as they choose.

Government provides service of defense, roads, education, pension andsome

medical care.

Advantages of Mixed Economy

Government support:

In mixed economy government has the control of many of the key aspects of the
economy, such as public schools, police department, firedepartment, military,
museums, libraries, and streets, or sewers.
Highest possible use of resource:
A mixed economy can maximize the continuousutilization of all available resources.
Flexibility:

This economic system is more flexible than Planned economy andCapitalism.

Freedom of choice:
In this type of economic system everybody has the right of enterprise ownership,
work for social welfare, profit earnings, political freedom.
Limited rules:
The government has limited control, which is good for structure.
Disadvantages of Mixed Economy
Corruption:
Mixed economic systems incentives corruption and political bureaucracy capitalist
nexus enjoying at the cost of the citizens.
Increase of unemployment:
Rate of unemployed people increases. Business wantsto maximize profit
by minimizing costs. They get minimum number of staffs.
Waste of resources:

Resources owned by the government are sometimes.

Lacking of standard:

The absence of profit motives acts as a deterrent toindividual contribution. For that
sometimes products are not maintained standard.
Economic System followed by different countries

China
China once had a socialist, planned economy where the government controlled
andowned all the means and methods of production. It is now near a
mixedeconomy after privatization of most of the state owned enterprises andopenin
g up to western countries. For example, peasants now have their ownfirms; foreign
businesses are allowed to set up in China and so on.
U.S.A.
The USA economic system is mixed capitalism. It became mixed whengovernment
established operating guideline and laws for business to follow.
For example, postal service is a government business that competes with private bu
siness such as Federal Express.
Cuba
Cuba has a dual economy, with two distinct systems operating side by side.
Thesocialist peso economy applies to most Cubans, providing them with freeeducati
on, free health care, universal employment, unemployment compensation,disability
and retirement benefits and the basis necessities of life: food, housing,utilities and
some entertainment at very low cost. The market economy operates inthe tourist,
international and exports sectors, and substantially sustains the socialisteconomy.
Bangladesh
Bangladesh economic system is mixed economy. Both private and government
is producing and distributing goods and services. Defense, roads, education,
pensionand some medical care are under the authorization of government. Private
sectorsare also providing goods and services to the people.
Conclusion
Different countries follow different types of economic system. But now a daysmost
of the countries are adopting mixed economy system. Even capitalist countryU.S.A.,
socialist countries like China, Cuba are moving their economic systemtowards mixed
economy. Now pure capitalism and socialism are found in booksonly. Because of

flexibility, government support, international business policycountries are being

interested in mixed economy.