Economic Systems

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government tends to manage an economy poorly. Free market economists also criticize a mixed economy, as it allows excessive intervention of the government. In a mixed economy, the government might limit company sizes because of rules regarding anti-trust laws and monopolies. Companies may even be harshly taxed to support other economic aspects. Without particular security measures in place, entrepreneurial spirit may be destroyed. More state intervention in the economy, of course, requires greater investment from the government, which largely comes from tax revenues. This will lead to negative consequences, such as decreased motivation in work, as employees see a large proportion of their earnings going to the taxation agency.

Command Market Economy:

Pros of a Command Economy are it limits the monopolizing Command economy make it difficult for a monopoly to rule the market, as the major forces are controlled and regulated by the government. Though monopoly can exist in all ...

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