Economics is not just a branch of abstract knowledge. This science is closely related to the daily life of every person. And experts in economics not only theoretically study their subject of research, but also influence world commodity-money relations. Therefore, to understand the development of modern society, it is necessary to find out why economists consider the best, for example, a mixed economy.
First, you need to understand what a mixed economy is. In the XX and XXI centuries, there are two main economic types, depending on the ownership of the means of production - public and private. In the first case, all land and industrial resources belong to the state, in the second, they are distributed among individuals. The first type was widespread in the countries of the socialist camp, and is still preserved, for example, in North Korea. The second type could be observed in the most striking form during the period of economic liberalism in Europe and the United States.
A mixed economy is a combination of these two types of ownership. Individuals can own both land and industrial enterprises, but at the same time they are limited in a number of rights by the state, which performs control functions. There is also a public sector, more or less extensive. It usually includes areas in which private capital cannot or does not want to be involved - schools, hospitals, cultural institutions, utilities, as well as the so-called "natural monopolies", which in Russia, for example, include railways.
As can be understood from the description of the mixed model, most modern states adhere to it. Economists attribute this to a number of advantages of this model. First, after the collapse of the socialist bloc, it became clear that an exclusively state economy was ineffective. In the absence of competition, the military-industrial complex developed mainly, while the production of goods for the needs of the population did not meet the needs of citizens. This led to a shortage of basic household products and the subsequent lag of the state in technical development.
Second, an economy in which virtually all assets are owned by private individuals and where there is insufficient government regulation will also have developmental problems. A similar situation could be observed in the late 19th - early 20th centuries, when excessive liberalism in state economic policy led to the monopolization of production. Cartels began to form, covering all stages of production, from the extraction of raw materials to the sale of the final product. The monopoly of any company in the market again leads to a lack of competition, which resulted in an uncontrolled increase in prices, deterioration in quality, and so on. Therefore, the governments of different countries were forced to take on more functions to regulate the market, for example, to issue special antitrust laws, as well as to nationalize some of the industries.
Also, uncontrolled private ownership of the means of production led to a deterioration in the situation of workers. And in order to avoid a social crisis and revolution, the state also assumed control over working conditions and wages.
Mixed ownership of the means of production, according to many economists, helps to avoid the problems listed above. Therefore, at the moment, this system is optimal.
