MIXED ECONOMY IN BRITAIN

Mixed Economy in Britain

Abstract

This research paper talks about mixed economy in Britain. It starts with the brief description of mixed economy. Further it explains the mixed economy system in Britain. It is elaborated by taking an example of tourism industry of UK where mixed economy has worked to strengthen the economy of the country.

Introduction

An economic system in which economy is directed by government and private sectors is called mixed economy. It reflects the characteristics of both planned and market economies. It is said that mixed economy is a market economy with stronger regularity frameworks along with various aspects of government sponsorships (Justman & Gradstein 1997, pp.n.d.).

Discussion

There is no particular definition for a mixed economy but all descriptions always involve a level of private economic freedom for private sector along with the contribution of government regulations. Economies ranging from U.K to U.S and India to Cuba are termed to be mixed economy systems. The term mixed economy is also used to explain the economies of countries that are welfare states. In mixed economy system, government often provides protection to environment, employments standards, a consistent welfare system and en courage competition (Ikeda 1997, pp. 15).

The economy of U.K is said to be the world's biggest economy system and it possesses mixed economy in which both public and private sectors play their parts to strengthen the economic system of the country. This type of economy is gradually reducing the public ownership in U.K for last two decades. There is a mixed economy system in UK. Market makes most of the decisions such as the purchasing of goods at market means that you give your money for the goods and services you want to purchase. On the other hand government also makes some decisions for e.g. building of infrastructures like schools, roads, ...