1. Unit 2: Economic Systems
Section 4:
Mixed Economies

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

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

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

5. 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

6. 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”

7. 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