Unit 2: Economic Systems Section 4: Mixed Economies

Mixed Economies Add a bit of Free Market Capitalism Laissez-faire Government keep your HANDS OFF! Let the market take care of itself

Mixed Economies Add some government controlled socialism limited government involvement Military Highways Education Protection (police) Society’s MASSIVE projects

Mixed Economies How much capitalism to mix with socialism??? Each society must make its own recipe based on what the society values

Shifting Economic Systems Economic TRANSITION – process of moving from one economic system to another economic system Privatization – process of selling off government owned businesses to private entrepreneurs

The US Economy Free enterprise system Limited government intervention FREE of excessive government interference Private ownership of businesses Limited government intervention The government acts like a referee The rules of the “game” are set (by the government) Penalties are called on businesses which break the rules of the “game”

The US Economy Economic Freedom High level of economic choice Little PROTECTIONISM against foreign companies Protectionism – using taxes/tariffs, embargoes, etc. to protect a nation’s businesses from foreign competition