Economic System And Economic Systems Essay
From the beginning of civilization our world has progressed in so many ways. This changes and developments in the social economic and political form and structure took place along the way. At different stages in our history we had different types of governments and economic systems.
For a large part of our economic history, two classifications of economic systems played a major role, capitalist or free market economic system and socialist or command economic system. The main difference between these systems is the degree of economic freedom and control.
Mixed economy as the name implies has the element of both economic systems, it is an economic system that features characteristics of both capitalism and socialism. It is true that command and market economy have never been attained in wholly pure form but in reality an economic system will to some extent incorporate features of both systems.
Every economic system has its own advantages and disadvantages. Since mixed economy has elements of both capitalist and command economy systems, it also takes with it some of the advantages and disadvantages of both systems.
The Swedish economic model is a good example of a mixed economy system. Sweden stands as an example of a successfully developed state and well organized society with its own way between capitalism and socialism sometimes referred as the “third” way. The compromise created a middle way between…