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Which economic system do you think is most effective: market, planned, or mixed?

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bigsteve2 | eNotes Newbie

Posted October 2, 2013 at 3:15 AM via web

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Which economic system do you think is most effective: market, planned, or mixed?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted October 2, 2013 at 3:34 AM (Answer #1)

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This is, of course, a matter of opinion.  My own opinion is that a mixed economy is the best economic system.  Specifically, I would argue that the best economy is one that is based mainly on market principles but which has some amount of government involvement.

Market economies are, in general, a good thing.  Market economies allow consumers to have the greatest possible choice.  They allow consumers to have the best quality of products at the lowest prices.  All of these things happen “automatically” because businesses compete to make profits.  This is a good situation for consumers.  Market economies are also good because they allow people to have the greatest possible amount of economic freedom.

However, a pure market economy would not be so great.  For example, in a pure market economy, there would be no laws to protect workers from having to work long hours.  There would be no minimum wage laws.  There would be no consumer protection laws.  Without laws like these, there would be too much room for businesses to abuse workers and consumers.

Therefore, a market economy with some protections imposed by the government is, in my view, the best system.

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