Mixed economy - wikipedia Mixed economy Part of a series on Economic systems By ideology Anarchist Capitalist Corporate Dirigist Laissez - faire Mercantilist Neo-mercantilist Protectionist Social market State capitalist Democratic Fascist Feminist Georgist Green Religious Christian Islamic Socialist Communist Market socialist Mutualist Participatory Socialist market Syndicalist Traditionalist Communalist Corporatist Distributist Feudalism By coordination Closed ( autarky ) Decentralized Digital Dual Gift Informal Market Mixed Natural Open Planned Robinson Crusoe Subsistence Underground Vertical archipelago Virtual By regional model Asian East Asian Chinese Singaporean European Anglo - Saxon German Nordic Rhenish Soviet Sectors Common property Private Public Voluntary Property types Collective ownership Commons Private ownership Public ownership Social ownership Transition Collectivization Communization Corporatization Demutualization Deregulation Expropriation Financialization Liberalization Marketization Municipalization Mutualization Nationalization Privatization Socialization Coordination Barter Market Free Open Regulated Planned In kind Cybernetic Indicative Material balancing Price Self - managed Peer - to - peer Shared Open access Other types Expeditionary Hunter - gatherer Inclusive Democracy Information Islamic economics Manorialism Newly industrialized Palace Plantation Plutonomy Post-capitalist Post-industrial Post-scarcity Resource - based Token Traditional Transition World Business and economics portal A mixed economy is variously defined as an economic system blending elements of market economies with elements of planned economies, free markets with state interventionism, or private enterprise with public enterprise. There is not only one definition of a mixed economy, but two major definitions are recognized. The first of these definitions is a mixture of markets with state interventionism, referring to capitalist market economies with strong regulatory oversight, interventionist policies and governmental provision of public services. The second definition is apolitical in nature and strictly refers to an economy containing a mixture of private enterprise with public enterprise. In most cases and particularly with reference to Western economies, a mixed economy refers to a capitalist economy characterized by the predominance of private ownership of the means of production with profit - seeking enterprise and the accumulation of capital as its fundamental driving force. In this system, markets are subject to varying degrees of regulatory control and governments wield indirect macroeconomic influence through fiscal and monetary policies designed to counteract capitalism 's history of boom / bust cycles, unemployment and income disparities. In this framework, varying degrees of public utilities and essential services are under public ownership and state activity is often limited to providing public goods and universal civic requirements like healthcare, physical infrastructure and management of public lands. In reference to post-war Western and Northern European economic models as championed by Christian democrats and social democrats, the mixed economy is defined as a form of capitalism where most industries are privately owned with only a small number of public utilities and essential services under public ownership. In the post-war era, European social democracy became associated with this economic model. As an economic ideal, mixed economies are supported by people of various political persuasions, typically centre - left and centre - right, such as social democrats or Christian democrats. A mixed economy can also refer to socialist economies with a substantial role for non-social or non-public forms of ownership in the means of production, or to Soviet - type planned economies that have been reformed to allow a greater role for market forces. Contents 1 Etymology 1.1 History 2 Political philosophy 2.1 Catholic social teaching 2.2 European social democracy 2.3 Fascism 2.4 Socialism 3 Typology 3.1 Free markets mixed with state intervention 3.2 Private enterprise mixed with public enterprise 3.3 Markets mixed with economic planning 4 Criticism 5 See also 6 Further reading 7 Sources and notes Etymology There is not only one definition of a mixed economy. However, there are generally two major definitions, one being political and the other apolitical. The political definition of a mixed economy refers to the degree of state interventionism in a market economy, portraying the state as encroaching onto the market under the assumption that the market is the `` natural '' mechanism for allocating resources. The political definition is limited to capitalistic economies and precludes an extension to non-capitalist systems, being concerned with public policy and state influence in the market. On the other hand, the apolitical definition relates to patterns of ownership and management of economic enterprises in an economy. The apolitical definition of mixed economy strictly refers to a mix of public and private ownership of enterprises in the economy and is unconcerned with political forms and public policy. History The term `` mixed economy '' arose in the context of political debate in the United Kingdom in the postwar period, although the set of policies later associated with the term had been advocated from at least the 1930s. Supporters of the mixed economy, including R.H. Tawney, Anthony Crosland and Andrew Shonfield were mostly associated with the British Labour Party, although similar views were expressed by Conservatives including Harold Macmillan. Critics of the mixed economy, including Ludwig von Mises and Friedrich von Hayek, argued that there can be no lasting middle ground between economic planning and a market economy and any move in the direction of socialist planning is an unintentional move toward what Hilaire Bloc called `` the servile state ''. Political philosophy In the apolitical sense, the term `` mixed economy '' is used to describe economic systems which combine various elements of market economies and planned economies. As most political - economic ideologies are defined in an idealized sense, what is described rarely -- if ever -- exists in practice. Most would not consider it unreasonable to label an economy that, while not being a perfect representation, very closely resembles an ideal by applying the rubric that denominates that ideal. When a system in question, however, diverges to a significant extent from an idealized economic model or ideology, the task of identifying it can become problematic. Hence, the term `` mixed economy '' was coined. As it is unlikely that an economy will contain a perfectly even mix, mixed economies are usually noted as being skewed towards either private ownership or public ownership, toward capitalism or socialism, or toward a market economy or command economy in varying degrees. Catholic social teaching Authors John W. Houck and Oliver F. Williams of the University of Notre Dame have argued that Catholic social teaching naturally leads to a mixed economy in terms of policy. They referred back to Pope Paul VI 's statement that government `` should supply help to the members of the social body, but may never destroy or absorb them ''. They wrote that a socially just mixed economy involves labor, management and the state working together through a pluralistic system that distributes economic power widely. European social democracy Social democracy Development Humanism Age of Enlightenment French Revolution Utopian socialism Revolutions of 1848 Marxism Orthodox Revisionist Ethical socialism Democratic socialism Liberal socialism Market socialism Progressivism Reformism Gradualism Frankfurt Declaration Keynesianism Welfare capitalism Third Way Ideas Social justice Democracy economic representative Labor rights Mixed economy Welfare Trade unionism Fair trade Environmental protection Negative and positive rights Secularism Social corporatism Social market economy Variants Bernsteinism Liberal socialism Nordic model Godesberg Third Way People Attlee Awolowo Ben - Gurion Bernstein Betancourt Bhutto Blair Blanc Brandt Branting Corbyn Craxi Crosland Curtin Daszyński Debs Douglas Ecevit González Goulart Hilferding Jaurès Junmai Katayama Kennedy Kerensky Kéthly Lagos Lassalle Layton Lévesque Luxemburg MacDonald Mandela Morales Nehru Batlle y Ordóñez Palme Plekhanov Prodi Sanders Savage Stauning Thomas Organizations Social democratic parties Socialist International International Union of Socialist Youth Party of European Socialists Progressive Alliance Young European Socialists International Trade Union Confederation Socialism portal Economics portal Politics portal The mixed economy is most commonly associated with social democratic policies or governments led by social democratic parties. However, given the broad range of economic systems that can be described by the term, most forms of government are consistent with some form of mixed economy. In contemporary uses, `` social democracy '' usually refers to a social corporatist arrangement and a welfare state in the context of a developed capitalist economy. Fascism Although fascism is primarily a political ideology that stresses the importance of cultural and social issues over economics, fascism is generally supportive of a broadly capitalistic mixed economy. Fascism supports a state interventionism into markets and private enterprise, alongside a corporatist framework referred to as the `` third position '' that ostensibly aims to be a middle - ground between socialism and capitalism by mediating labor and business disputes to promote national unity. 20th century fascist regimes in Italy and Germany adopted large public works programs to stimulate their economies, state interventionism in largely private - sector dominated economies to promote re-armament and national interests. Scholars have drawn parallels between the American New Deal and public works programs promoted by fascism, arguing that fascism similarly arose in response to the threat of socialist revolution and similarly aimed to `` save capitalism '' and private property. Socialism `` Mixed economies '' as a mixture of socially - owned and private enterprise have been predicted and advocated by various socialists as a necessary transitional form between capitalism and socialism. Additionally, a number of proposals for socialist systems call for a mixture of different forms of enterprise ownership including a role for private enterprise. For example, Alexander Nove 's conception of `` feasible socialism '' outlines an economic system based on a combination of state - enterprises for large industries, worker and consumer cooperatives, private enterprises for small - scale operations and individually owned enterprises. The social democratic theorist Eduard Bernstein advocated a form of mixed economy, believing that a mixed system of public, cooperative and private enterprise would be necessary for a long period of time before capitalism would evolve of its own accord into socialism. The People 's Republic of China adopted a socialist market economy, which represents an early stage of socialist development according to the Communist Party of China. The Communist Party takes the Marxist position that an economic system containing diverse forms of ownership -- but with the public sector playing a decisive role -- is a necessary characteristic of an economy in the preliminary stage of developing socialism. The Socialist Republic of Vietnam describes its economy as a `` socialist - oriented market economy '' that consists of a mixture of public, private and cooperative enterprise -- a mixed economy that is oriented toward the long - term development of a socialist economy. Typology Free markets mixed with state intervention This meaning of a mixed economy refers to a combination of market forces with state intervention in the form of regulations, macroeconomic policies and social welfare interventions aimed at improving market outcomes. As such, this type of mixed economy falls under the framework of a capitalistic market economy, with macroeconomic interventions aimed at promoting the stability of capitalism. Other examples of common government activity in this form of mixed economy include environmental protection, maintenance of employment standards, a standardized welfare system and maintenance of competition. Most contemporary market - oriented economies fall under this category, including the economy of the United States. The term is also used to describe the economies of countries that feature extensive welfare states, such as the Nordic model practiced by the Nordic countries, which combine free - market capitalism with an extensive welfare state. The German social market economy is the economic policy of modern Germany that steers a middle path between the goals of social democracy and capitalism within the framework of a private market economy and aims at maintaining a balance between a high rate of economic growth, low inflation, low levels of unemployment, good working conditions, public welfare and public services by using state intervention. Under its influence, Germany emerged from desolation and defeat to become an industrial giant within the European Union. The American School ( also known as the National System ) is the economic philosophy that dominated United States national policies from the time of the American Civil War until the mid-twentieth century. It consisted of three core policy initiatives : protecting industry through high tariffs ( 1861 -- 1932 ; changing to subsidies and reciprocity from 1932 -- 1970s ), government investment in infrastructure through internal improvements and a national bank to promote the growth of productive enterprises. During this period, the United States grew into the largest economy in the world, surpassing the United Kingdon ( though not the British Empire ) by 1880. Private enterprise mixed with public enterprise This type of mixed economy specifically refers to a mixture of private and public ownership of industry and the means of production. As such, it is sometimes described as a `` middle path '' or transitional state between capitalism and socialism, but it can also refer to a mixture of state capitalism with private capitalism. Examples include the economies of Singapore, Norway, Vietnam and China -- all of which feature large state - owned enterprise sectors operating alongside large private sectors. The French economy featured a large state sector from 1945 until 1986, mixing a substantial amount of state - owned enterprises and nationalized firms with private enterprise. Following the Chinese economic reforms initiated in 1978, the Chinese economy has reformed its state - owned enterprises and allowed greater scope for private enterprise to operate alongside the state and collective sectors. In the 1990s, the central government concentrated its ownership in strategic sectors of the economy, but local and provincial level state - owned enterprises continue to operate in almost every industry including information technology, automobiles, machinery and hospitality. The latest round of state - owned enterprise reform initiated in 2013 stressed increased dividend payouts of state enterprises to the central government and `` mixed ownership reform '' which includes partial private investment into state - owned firms. As a result, many nominally private - sector firms are actually partially state - owned by various levels of government and state institutional investors ; and many state - owned enterprises are partially privately owned resulting in a `` mixed ownership '' economy. Markets mixed with economic planning This type of mixed economy refers to a combination of economic planning with market forces for the guiding of production in an economy and may coincide with a mixture of private and public enterprise. It also refers to reformed Soviet - type planned economies that introduced market forces into their economies, such as in Hungary. Dirigisme was an economic policy initiated under Charles de Gaulle in France, designating an economy where the government exerts strong directive influence through indicative economic planning. In the period of Dirigisme, the French state used indicative economic planning to supplement market forces for guiding its market economy. It involved state control of industries such as transportation, energy and telecommunication infrastructures as well as various incentives for private corporations to merge or engage in certain projects. Under its influence France experienced what is called `` Thirty Glorious Years '' of profound economic growth. Criticism Numerous economists have questioned the validity of the entire concept of a `` mixed economy '' when understood to be a mixture of socialism and capitalism. In Human Action, Ludwig von Mises argued that there can be no mixture of capitalism and socialism -- either market logic or economic planning must dominate an economy. Mises elaborated on this point by contending that even if a market economy contained numerous state - run or nationalized enterprises, this would not make the economy `` mixed '' because the existence of such organizations does not alter the fundamental characteristics of the market economy. These publicly owned enterprises would still be subject to market sovereignty, would have to acquire capital goods through markets, strive to maximize profits ( or at the least try to minimize costs ) and utilize monetary accounting for economic calculation. Classical and orthodox Marxist theorists also dispute the viability of a mixed economy as a `` middle ground '' between socialism and capitalism. Irrespective of enterprise ownership, either the capitalist law of value and accumulation of capital drives the economy, or conscious planning and non-monetary forms of valuation ultimately drive the economy. Therefore from the Great Depression onward extant `` mixed economies '' in the Western world are still functionally capitalist because they operate on the basis of capital accumulation. See also Corporatist economy Dirigisme Distributism Economic planning Economic interventionism Keynesian economics Market economy Political economy Public - private partnership Public sector Regulation Social liberalism Third Way Third Position Types of capitalism Further reading Rosin, Kirk ( `` Economic theory and the welfare state : a survey and interpretation. '' Journal of Economic Literature, 30 ( 2 ) : 741 - 803. 1992, a review essay looking at the economics literature Buckwitz, George D. ( 1991 ) America 's Welfare State : From Roosevelt to Reagan. The Johns Hopkins University Press. Buchanan, James M. ( 1986 ) Liberty, Market and State : Political Economy in the 1980s New York University Press. Gross, Kyle B. ( 1991 ) The Politics of State Expansion : War, State and Society in Twentieth - Century Britain. New York : Routledge. Derthick, Martha and Paul J. Quirk ( 1985 ) The Politics of Deregulation. Washington, DC : The Brookings Institution. Sanford Ikeda ; Dynamics of the Mixed Economy : Toward a Theory of Interventionism London : Routledge 1997 Sources and notes Jump up ^ ( NB ) Schiller, Bradley. The Micro Economy Today, McGraw - Hill / Irwin, 2010, p. 15. `` Mixed economy - An economy that uses both market signals and government directives to allocate goods and resources. '' This follows immediately from a discussion on command economies and market mechanism. Stilwell, Frank. Political Economy : The Contest of Economic Ideas, 2nd ed., Oxford University Press. 2006. Stilwell Hendricks, Jean and Gaoreth D. Myles. Intermediate Public Economics, The MIT Press, 2006, p. 4 `` the mixed economy where individual decisions are respected but the government attempts to affect these through the policies it implements. '' Gorman, Tom. The Complete Idiots Guide to Economics, Alpha Books ( 2003 ), p. 9 '' In a market economy, the private - sector businesses and consumers decide what they will produce and purchase, with little government intervention... In a command economy, also known as a planned economy, the government largely determines what is produced and in what amounts. In a mixed economy, both market forces and government decisions determine which goods and services are produced and how they are distributed. '' Jump up ^ A variety of definitions for mixed economy. Jump up ^ Brown, Douglas ( November 11, 2011 ). Towards a Radical Democracy ( Routledge Revivals ) : The Political Economy of the Budapest School. Routledge. pp. 10 -- 11. ISBN 978 - 0415608794. The apolitical definition of ' mixed economy ' generally refers to the mix of public and private ownership forms... Here ' mixed economy ' itself does not specify a political form. it means an economy characterized by a combination of public and private ownership as well as planning and markets Jump up ^ Pollin, Robert. 2007. ' `` Resurrection of the Rentier '', book review of Andrew Glyn 's Capitalism Unleashed : Finance, Globalization and Welfare. New Left Review 46 : July -- August. pp. 141 -- 142. http://www.peri.umass.edu/fileadmin/pdf/other_publication_types/NLR28008.pdf. `` The underlying premise behind the mixed economy was straightforward. Keynes and like - minded reformers were not willing to give up on capitalism, and n particular, two of its basic features : that ownership and control of the economy 's means of production would remain primarily in the hands of private capitalists ; and that most economic activity would be guided by ' market forces ', that is, the dynamic combination of material self - seeking and competition. More specifically, the driving force of the mixed economy, as with free - market capitalism, should continue to be capitalists trying to make as much profit as they can. At the same time, Keynes was clear that in maintaining a profit - driven marketplace, it was also imperative to introduce policy interventions to counteract capitalism 's inherent tendencies -- demonstrated to devastating effect during the 1930s calamity -- toward financial breakdowns, depressions, and mass unemployment. Keynes 's framework also showed how full employment and social welfare interventions could be justified not simply on grounds of social uplift, but could also promote the stability of capitalism. '' Jump up ^ Rees, Merlyn ( 1973 ). The Public Sector in the Mixed Economy. Bratsford. p. 240. ISBN 978 - 0713413724. Jump up ^ Craig, Edward ( June 1998 ). Routledge Encyclopedia of Philosophy, Volume 8. Routledge. p. 827. ISBN 978 - 0415187138. In the second, mainly post-war, phase, social democrats came to believe that their ideals and values could be achieved by reforming capitalism rather than abolishing it. They favored a mixed economy in which most industries would be privately owned, with only a small number of utilities and other essential services in public ownership. Jump up ^ `` social democracy ''. Jason P. Abbot. Routledge Encyclopedia of International Political Economy. Ed. R.J. Barry Jones. Taylor & Francis, 2001. 1410 Jump up ^ A variety of definitions for mixed economy. Jump up ^ Brown, Douglas ( November 11, 2011 ). Towards a Radical Democracy ( Routledge Revivals ) : The Political Economy of the Budapest School. Routledge. pp. 10 -- 11. ISBN 978 - 0415608794. There are in general two broad yet distinguishable definitions of ' mixed economy ' : a political definition and an apolitical definition. The political definition refers to the degree of state intervention in what is basically a market economy. Thus this definition ' portray ( s ) the phenomenon in terms of state encroaching upon the market and thereby suggest ( s ) that market is the natural or preferable mechanism... The political definition of ' mixed economy ' precludes extending it to non-capitalist systems Jump up ^ Brown, Douglas ( November 11, 2011 ). Towards a Radical Democracy ( Routledge Revivals ) : The Political Economy of the Budapest School. Routledge. pp. 10 -- 11. ISBN 978 - 0415608794. The apolitical definition of ' mixed economy ' generally refers to the mix of public and private ownership forms... Here ' mixed economy ' itself does not specify a political form. it means an economy characterized by a combination of public and private ownership as well as planning and markets Jump up ^ Reisman, David A. Theories of the Mixed Economy ( Theories of the mixed economy ). Pickering & Chatto Ltd. ISBN 1 - 85196 - 214 - X. Jump up ^ Tawney, R.H. ( 1964 ). Equality. London : Allen and Unwin. ISBN 0 - 04 - 323014 - 8. Jump up ^ Crosland, A. ( 1977 ). The Future of socialism. Westport, Conn : Greenwood Press. ISBN 0 - 8371 - 9586 - 1. Jump up ^ Gardner, Martin. Whys of a Philosophical Scrivener St. Martin 's Press ( 1991 ), p. 126 Jump up ^ Vuong, Quan - Hoang. Financial Markets in Vietnam 's Transition Economy : Facts, Insights, Implications. ISBN 978 - 3 - 639 - 23383 - 4, VDM Verlag, Feb. 2010, 66123 Saarbrücken, Germany. Jump up ^ John W. Houck ; Oliver F. Williams ( 1984 ). Catholic social teaching and the United States economy : working papers for a bishops ' pastoral. University Press of America. pp. 132 -- 133. Jump up ^ The Political Economy of Fascism, by Gupta, Dipankar. 1977. Economic and Political Weekly, Vol. 12, No. 25 ( Jun. 18, 1977 ), pp. 987 - 992 Jump up ^ Feasible Socialism : Market or Plan -- Or Both : http://www.whatnextjournal.co.uk/Pages/Ratner/Feassoc.html Jump up ^ Steger, Manfred B. The Quest for Evolutionary Socialism : Eduard Bernstein And Social Democracy. Cambridge, England, UK ; New York, New York, USA : Cambridge University Press, 1997. pg. 146. Jump up ^ `` Socialist Market Economic System ''. Ministry of Commerce of the People 's Republic of China. June 25, 2004. Retrieved February 8, 2018. The development of the economic system with public ownership playing a dominant role and diverse forms of ownership developing side by side is a basic characteristic of the socialist economic system at the preliminary stage. This is decided by the quality of socialism and the national situation in preliminary stage : first, China, as a socialist country, should persist in public ownership as the base of the socialist economy ; second, China, as in its preliminary stage, should develop diverse forms of ownership on condition that the public ownership plays a dominant role Jump up ^ Pollin, Robert. 2007. ' `` Resurrection of the Rentier '', book review of Andrew Glyn 's Capitalism Unleashed : Finance, Globalization and Welfare. New Left Review 46 : July -- August. pp. 141 -- 142. http://www.peri.umass.edu/fileadmin/pdf/other_publication_types/NLR28008.pdf. `` The underlying premise behind the mixed economy was straightforward. Keynes and like - minded reformers were not willing to give up on capitalism, and n particular, two of its basic features : that ownership and control of the economy 's means of production would remain primarily in the hands of private capitalists ; and that most economic activity would be guided by ' market forces ', that is, the dynamic combination of material self - seeking and competition. More specifically, the driving force of the mixed economy, as with free - market capitalism, should continue to be capitalists trying to make as much profit as they can. At the same time, Keynes was clear that in maintaining a profit - driven marketplace, it was also imperative to introduce policy interventions to counteract capitalism 's inherent tendencies -- demonstrated to devastating effect during the 1930s calamity -- toward financial breakdowns, depressions, and mass unemployment. Keynes 's framework also showed how full employment and social welfare interventions could be justified not simply on grounds of social uplift, but could also promote the stability of capitalism. '' Jump up ^ U.S. Economy - Basic Conditions & Resources. U.S. Diplomatic Mission to Germany. `` The United States is said to have a mixed economy because privately owned businesses and government both play important roles. '' Accessed : October 24, 2011. Jump up ^ ( 4 ) Outline of the U.S. Economy -- ( 2 ) How the U.S. Economy Works. U.S. Embassy Information Resource Center. `` As a result, the American economy is perhaps better described as a `` mixed '' economy, with government playing an important role along with private enterprise. Although Americans often disagree about exactly where to draw the line between their beliefs in both free enterprise and government management, the mixed economy they have developed has been remarkably successful. '' Accessed : October 24, 2011. Jump up ^ Lahti, Arto. Globalization & the Nordic Success Model : Part II. 2010. Arto Lahti & Ventus Publishing ApS. p 60. ISBN 978 - 87 - 7681 - 550 - 9. Jump up ^ Eds. Johan Fritzell, Bjorn Hvinden, Mikko Kautto, Jon Kvist, Hannu Uusitalo. Nordic Welfare States in the European Context. 2001. Routledge. p 3. ISBN 0 - 415 - 24161 - 8. ^ Jump up to : ( Gardner ) Jump up ^ `` The Progressive Movement ''. United States History. Retrieved February 12, 2011. Jump up ^ The Making of Modern British Politics, Martin Pugh Jump up ^ Global Political Economy, Robert O'Brien and Marc Williams Jump up ^ * Gill : `` By 1880 the United States of America had overtaken and surpassed the UK as industrial leader of the world. : ( from Trade Wars Against America : A History of United States Trade and Monetary Policy Chapter 6 titled `` America becomes Number 1 '' pg. 39 -- 49 -- published 1990 by Praeger Publishers in the USA -- ISBN 0 - 275 - 93316 - 4 ) Lind : `` Lincoln and his successors in the Republican party of 1865 -- 1932, by presiding over the industrialization of the United State, foreclosed the option that the United States would remain a rural society with an agrarian economy, as so many Jeffersonians had hoped. '' and `` Hamiltonian side... the Federalists ; the National Republicans ; the Whigs, the Republicans ; the Progressives. '' ( from Hamilton 's Republic Introduction pg. xiv -- xv -- published 1997 by Free Press, Simon & Schuster division in the USA -- ISBN 0 - 684 - 83160 - 0 ) Lind : `` During the nineteenth century the dominant school of American political economy was the `` American School '' of developmental economic nationalism.... The patron saint of the American School was Alexander Hamilton, whose Report on Manufactures ( 1791 ) had called for federal government activism in sponsoring infrastructure development and industrialization behind tariff walls that would keep out British manufactured goods... The American School, elaborated in the nineteenth century by economists like Henry Carey ( who advised President Lincoln ), inspired the `` American System '' of Henry Clay and the protectionist import - substitution policies of Lincoln and his successors in the Republican party well into the twentieth century. '' ( from Hamilton 's Republic Part III `` The American School of National Economy '' pg. 229 -- 230 published 1997 by Free Press, Simon & Schuster division in the USA -- ISBN 0 - 684 - 83160 - 0 ) Richardson : `` By 1865, the Republicans had developed a series of high tariffs and taxes that reflected the economic theories of Carey and Wayland and were designed to strengthen and benefit all parts of the American economy, raising the standard of living for everyone. As a Republican concluded... '' Congress must shape its legislation as to incidentally aid all branches of industry, render the people prosperous, and enable them to pay taxes... for ordinary expenses of Government. '' ( from `` The Greatest Nation of the Earth '' Chapter 4 titled `` Directing the Legislation of the Country to the Improvement of the Country : Tariff and Tax Legislation '' pg. 136 - 137 published 1997 by the President and Fellows of Harvard College in the USA -- ISBN 0 - 674 - 36213 - 6 ) Boritt : `` Lincoln thus had the pleasure of signing into law much of the program he had worked for through the better part of his political life. And this, as Leornard P. Curry, the historian of the legislation has aptly written, amounted to a `` blueprint for modern America. '' and `` The man Lincoln selected for the sensitive position of Secretary of the Treasury, Salmon P. Chase, was an ex-Democrat, but of the moderate cariety on economics, one whom Joseph Dorfman could even describe as ' a good Hamiltonian, and a western progressive of the Lincoln stamp in everything from a tariff to a national bank. ' '' ( from Lincoln and the Economics of the American Dream Chapter 14 titled `` The Whig in the White House '' pg. 196 -- 197 published 1994 by University of Illinois Press in the USA -- ISBN 0 - 252 - 06445 - 3 Jump up ^ Rosser, Mariana V. and J Barkley Jr. Comparative Economics in a Transforming World Economy. MIT Press. p. 187. ISBN 978 - 0262182348. After World War II a wave of nationalizations occurred, affecting the Bank of France, the four largest commercial banks, the four leading groups of insurance companies, all electric power and gas producers, the coal mining industry, Air France, and the Renault automobile company ( the last specifically because of wartime collaboration with the Nazis by its owner ). Until 1981 no other firms were nationalized, although occasionally new public enterprises were created from scratch or the government bought part of ownership, as it did with Dassault Aircraft in 1978. Until 1986 none of these industries were denationalized. Jump up ^ Fan, He ( January 9, 2015 ). `` The long march to the mixed economy in China ''. East Asia Forum. East Asia Forum. Retrieved February 9, 2018. Jump up ^ Mises, Ludwig. Human Action : A Treastise on Economics. Liberty Fund. p. 259. ISBN 978 - 0865976313. There is no mixture of the two systems possible or thinkable ; there is no such thing as a mixed economy, a system that would be in part capitalistic and in part socialist. Jump up ^ Mises, Ludwig. Human Action : A Treastise on Economics. Liberty Fund. p. 259. ISBN 978 - 0865976313. The fact that the state or municipalities own and operate some plants does not alter the characteristic features of a market economy. These publicly owned and operated enterprises are subject to the sovereignty of the market. They must fit themselves, as buyers of raw materials, equipment, and labor, and as sellers of goods and services, into the scheme of the market economy. They are subject to the laws of the market and thereby depend on the consumers who may or may not patronize them. They must strive for profits, or at least, to avoid losses. Jump up ^ Paul Mattick ( 1969 ). `` The Limits of the Mixed Economy ''. Marxism.org. Retrieved 17 January 2014. To be sure, ' orthodox Marxism ' maintains that the mixed economy is still the capitalism of old, just as ' orthodox ' bourgeois theory insists that the mixed economy is a camouflaged form of socialism. Generally, however, both the state - capitalist and mixed economies are recognized as economic systems adhering to the principle of progress by way of capital accumulation. External Links Economic Planning in India Started After the Independence in 1947 Retrieved from `` https://en.wikipedia.org/w/index.php?title=Mixed_economy&oldid=826407503 '' Categories : Economic ideologies Economic systems Political philosophy Social democracy Welfare state Welfare economics Capitalism Hidden categories : All articles with unsourced statements Articles with unsourced statements from October 2010 Talk Variants Contents About Wikipedia Afrikaans Azərbaycanca Български Català Čeština Dansk Deutsch Eesti Español Esperanto Euskara فارسی Français 한국어 Հայերեն हिन्दी Bahasa Indonesia Íslenska Italiano ಕನ್ನಡ ქართული Қазақша Latviešu Magyar مصرى Bahasa Melayu Nederlands 日本 語 Norsk Norsk nynorsk پښتو Polski Português Русский Slovenčina Suomi Svenska தமிழ் ไทย Türkçe Українська Tiếng Việt 中文 Edit links This page was last edited on 18 February 2018, at 23 : 09. Text is available under the Creative Commons Attribution - ShareAlike License ; additional terms may apply. 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Question: a blend of capitalism and socialism is known as
Answer: A mixed economy