some excerpts from a useful discussion:

The "mixture" in a mixed economy is one of private enterprise and public-sector controls and supports, of capitalism and socialism. That is to say, most economies that we think of as being "capitalist" are in fact mixed economies, including that of the United States. A similar term, often used to describe the transition economies of eastern Europe and elsewhere, is "market socialism."

To purists, government intervention might seem out of place in capitalism, which in theory puts great stock in the enterprising individual making personal decisions in the marketplace. But, in practice, members of capitalist societies also value economic security. The result is the mixed economy, offering government a voice in sustaining economic growth, while at the same time protecting people from the worst excesses of unfettered competition in the marketplace.

Some examples of intervention by the government include:

•agricultural subsidies or price supports for farmers
•protective tariffs for steelmakers
•deposit insurance for bank depositors
•social security for retirees


Read more: Mixed Economy http://www.referenceforbusiness.com/encyclopedia/Man-Mix/Mix...

http://www.referenceforbusiness.com/encyclopedia/Man-Mix/Mix...