The mixed economy

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Most economists would say that there are no examples in the world today of a completely free market or a completely controlled economy. Instead, every country operates a mixture of the two systems. Even in

the freest economies, like the USA, there is some government control; even in the strictest planned economy there are some free enterprises.

Economies mix government control and free market values in different ways. One way is to let privately owned businesses exist alongside state-run industries. The economy becomes divided between the state sector and the private sector. The state sector often includes industries that the government thinks are important and need protection from the risks of the free market. These could include public transport, hospitals, schools and the postal service. The state sector can also include large industries that are important for a country’s economic health, such as oil, steel or agriculture. These are sometimes called primary industries because they provide basic materials to manufacturers.

These state sector industries use money that the government collects in taxes. Often, they do not need to compete with other companies because no other company is allowed to provide the same product or service. However, many countries have recently started a process called deregulation.

Deregulation means freeing up the economy to allow private businesses to compete with state-run industries. The state sector should then run more efficiently in order to compete in the free market and because it now has less government protection.

Deregulation of services like telecommunications, transport and banking has happened in many countries in recent years. People have generally accepted these changes. However, generally the public is less happy when governments start talking about deregulation in education and health services. Many people feel that profit motivation will harm these services rather than improve them.

Another way in which economies today are mixed is that governments put limits on free enterprises. For example, governments may decide to ban trade in certain goods if they are dangerous.

Words:

mixed economy — смешанная primary industry — добывающая

экономика отрасль

enterprise — предприятие to compete — конкурировать

alongside — рядом deregulation —

to let — позволять разгосударствление

state — государство state-run industry —

protection — защита государственная отрасль

public transport — motivation — мотивация

общественный транспорт to harm — вредить

oil — нефть to ban — запрещать

Post-text exercises

Working on the text

I. Find answers in the text:

I. Are there examples of a completely free market or a completely
controlled economy in the world today? 2. Is there any government
control in the free economy of the USA? 3. How are two different
economies mixed? 4. What industries are included in the state sector
and why? 5. How do we call industries that provide basic materials to
manufacturers? 6. Where do the governments get money to help primary
industries? 7. What does a process called deregulation mean? 8. Is it
possible to compete state-run industries with private businesses? 9. Is
it possible to start a process called deregulation in education and health
services? 10. Can government put limits on free enterprises?

Дата добавления: 2014-12-29