A mixed economic system is a system that combines aspects of capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows governments to intervene in economic activities in order to achieve social goals.
Mixed economies are less efficient than pure free markets, but proponents of government intervention argue that the basic conditions required for efficiency in free markets, such as equality of information and rational market participants, cannot not be achieved in practice.
A mixed economy is an organized economy with free market elements and socialist elements, which lies on a continuum somewhere between pure capitalism and pure socialism.
Mixed economies typically maintain private ownership and control of most means of production, but often under government regulation. Mixed economies socialize certain industries deemed essential or that produce public goods.
All known historical and modern economies are examples of mixed economies, although some economists have criticized the economic effects of various forms of mixed economy.
From the book – ‘ All about corporate social responsibility ‘
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India CSR I November 23, 2021