Explain what a mixed economy is.

The majority of the economies in the world should be considered a mixed economy. The mixed economy blends elements of a market model with characteristics of a command economy. It is an amalgamation of capitalism and socialism. The mixed economy affords private citizens the right to own private property and enterprise but attempts to control resources through regulation policies of some variety.

There are a number of ways that government can intervene on the private sector in a mixed economy. It may try to redistribute wealth by taxation policies aimed at corporations or entrepreneurs. Governments may heavily regulate industries that it views as essential for the public good. These industries are often associated with utilities or transportation.

In the United States, there are a number of government agencies that intervene in the capitalist system. Their intervention has been determined to protect the welfare of its citizens. The Department of Commerce, Securities and Exchange Commission, and Environmental Protection Agency are just three of many examples of government regulation of the American economy.