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Which Economic System Is The Best

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

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Lynnette Wofford eNotes educator | Certified Educator

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Pure economic systems are a theoretical construct but I don't think they actually exist in reality. Even in some of the most authoritarian and rigid planned economies such as that of North Korea, there are limited amounts of informal or other free market transactions. Similarly, free market economies such as that of the United States and most other developed nations, regulate, provide, or control certain products and services in such areas as medicine, utilities, education, and transportation. All systems are therefore mixed to a certain degree. 

Of mixed systems, some tend more towards market and some tend more towards planned models. Which type of system works best depends on the nature of economy. Examples like that of China show that central planning can be quite effective for countries that are rapidly industrializing, but many free market economies are also quite successful. Perhaps what countries need most is to be flexible and responsive. A country engaged in large scale...

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