Download Aim: Why is the United States considered to be a Mixed Economy?

9/24/2012
Aim: Why is the United
States considered to be a
Mixed Economy?
Do Now: What is one disadvantage of a
Centrally Planned, and Free Market
Economy?
Homework: STUDY
Limits of Laissez Faire
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There are things for
which the market does
not provide:
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Public goods
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National defense
Public libraries
Public education
roads
conservations
environmental
protection
What Laissez Faire CANT DO

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Regulates "natural monopolies," for
example, and it uses antitrust laws to
control or break up other business
combinations that become so powerful
that they can surmount market forces.
provides welfare and unemployment
benefits to people who cannot support
themselves,
It pays much of the cost of medical
care for the aged and those who live in
poverty
It regulates private industry to limit air
and water pollution;
It provides low-cost loans to people
who suffer losses as a result of natural
disasters;
Exploration of space, which is too
expensive for any private enterprise to
handle.
Balancing control and freedom
 Each society must
evaluate its goals.
 Depending on a given
time frame, a
government may need
to act in a certain way
 Guns and Butter
United States Economy
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Free enterprise: Private or
corporate ownership.
Investments are
determined in free markets.
Law protects private
property
The government does
intervene when goods and
services are not addressed
by market.