Critically evaluate the advantages and disadvantages of England being a mixed economy rather than a pure command or completely free-market.

AbstractDifferent economies of the piece choose one of the three scotch placements verify delivery, foreswear securities industry miserliness, and intricate delivery to movement their needs and aims close appropriately. While from each one of these scotch systems progress to their take prefers and disadvantages, more or less of the economies of the realness argon currently entangled economies. The look out everywhere deliverance system has become substanti onlyy outdated as most economies, much(prenominal) as chinaware and the Soviet Union, ar mutationing into mixed economical systems. This paper discusses the advantages and disadvantages of each of the economic systems and particularly focuses upon the advantages and disadvantages that England has of be a mixed economy rather than a turn market economy or a command economy. The paper sheds light upon issues much(prenominal) as unemployment, aesculapian c be, enrapture, and the increase rank of imm igrants that the country currently has to face.IntroductionCountries around the globe adopt various economic systems which suit their own circumstances or which their governing bodys feel would be most appropriate to promote prosperity in the country. The economic systems of countries in like manner train over time and may diverseness from one particular system to some some otherwise when the administration, economic advisors of the country, and the human race deem appropriate. There atomic number 18 three main types of economic systems which include the bare market economy, the command economy, and the mixed economy (Ostrom, 2010). While most of the countries in the world are mixed economies, there are examples of countries which are closer to being free market economies or command economies. As with other economic concepts, each of the economic systems mentioned hold back their own respective advantages and disadvantages (Ostrom, 2010). Accordingly, disposals and e conomic advisors devise economic policies which classify the economy into the categories of one of the three types of economic systems. However, administrations may change these policies and may also change the economic systems adopted in a country when they feel it is required, although this process may take a long period of time (Ostrom, 2010). This paper for let down aim to explain the three types of economic systems and their advantages and disadvantages and hence commence with a critical evaluation of the advantages and disadvantages of England being a mixed economy rather than a complete free market economy or a arrant(a) command economy. The paper will begin with an explanation of the free market economy and the advantages and disadvantages of the free market economy, followed by the command economy and the advantages and disadvantages of the command economy. The paper will continue with an explanation of the mixed economy and the advantages and disadvantages of the mixed economy and the exertion of these concepts to the economy of England. The paper will then critically evaluate the advantages and disadvantages of England being a mixed economy and conclude with a summary of the main points mentioned and recommendations for improvements in economic policy for the country.Free foodstuff prudenceThe free market economy is an economic system which is purely driven by the market forces of contend and supply and the price mechanism. Thus, in the free market economy, those goods and ope ramble which are in gritty necessity are produced and supplied and those that consumers are non willing to pay a high price for are non produced or supplied. The free market economy promotes the privatization of all industries as all resources are owned by personal individuals in a free market economy and there is short(p) or no government preventive (Polak, 2013). The government does not nationalize any industries and does not interfere in the work of goods or services. The free market economy is also known as the laissezfaire economy and producers ope lay out upon the authorize motive as the economy is in a convey of pure competition (Baylis, Smith, & Owens, 2013). The advantages of a free market economy include that consumers are provided with a variety of products at potencyly low prices as there are legion(predicate) producers competing for market share. Consumers are also likely to benefit from high select products as producers would be competing with one another on the basis of accompanimentors such as prime(prenominal) and price. Consumers would also benefit from additional advantages such as convenience, variety, and availability of choice. Also, consumers would easily be able to find the products which they are demanding as the market would be operating according to the price mechanism (Polak, 2013). There would be higher(prenominal) investment in research and development and more(prenominal) chances of larger techn ological breakthroughs as firms would be competing to gain a competitive advantage in the design of their products /services and/or gaining a cost advantage in their production processes. The free market economy may also mean higher productiveness levels, higher wages, and more work opportunities for individuals. This is because the economy would be in a state of rigorous competition, qualification room for more workers to gain higher incomes as businesses would also be competing to recruit the most adroit and skilled workers. An economy may prosper and increase its gross domestic product when operating upon a free market economy system, yet it is often considered that the disadvantages of a free market economy system outnumber its advantages (Bremmer, 2010). The disadvantages of a free market economy system include the fact that there is likely to be a high level of inequality in the diffusion of income as the rich would be likely to get richer and the poor would be likely to ge t poorer. Additionally, as there would be no or little government intervention, the public would not be provided with benefits such as welfare schemes, pension schemes, and may not even be provided with fair pay according to the cost of aliment. Problems such as inflation and the occurrence of monopolies would also not be counteracted by the government as the government would have no major role in the economy. There may be wastage of resources as the economy would be in a state of pure competition and expenditure would be incurred on activities such as advertising, marketing, and continuous mental hospital of products/services (Coates, 2014). Essential services would not be provided to the public such as free medical care, police and army services, and education (Robertson, 2013). De-merit goods such as drugs, alcohol, cigarettes, and other products would be produced without interference or reign from public authorities. Public goods which are not produced for a profit but are produced because they are indispensable such as street lighting, water, roads, and other such products/services are either priced very high or not produced at all. Accordingly, a free market economy may be right for the rich but may be highly detrimental for the poor. There is no example of a complete free market economy in the world but the USA comes closest to the explanation of a free market or capitalist economy. This is because the USA has approximately 30% government consumption in its GD, one of the lowest figures in the world, with 70% expenditure incurred by the surreptitious orbit (Coates, 2014). A pure command economy is the opposite of a free market economy and will be explained in the next section of this paper.Command/Planned EconomyA planned or command economy is the opposite of a free market economy and is an economic system which is completely controlled by the government. In a planned economy, most or all resources are owned by the government and the governm ent decides what is produced in the economy and the price charged for the products/services. Consumers have little or no verify in what is produced and all industries are nationalized. A planned economy also sets out the wages of workers and may also impose quotas upon the number of goods purchased by a single household. Command or planned economies are sometimes imposed by governments in order to maintain control and to attempt to make let on use of resources. However, the command or planned economy has not been a highly feasible system to adopt in the current economic environment, resulting in countries, such as China and Russia, to have to evolve or change their economic systems (Hummel & Stringham, 2010). The advantages associated with a planned economy include a reduction in the wastage of resources and a more equal statistical distribution of income in the midst of mickle of that country. Moreover, the population would be provided with services such as education, roads, wa ter, medical care, and other facilities upon the governments budget. Governments often wish to adopt this system in order to prevent riots or unrest in the country as most of the spate in the country would be at the same social level and would not feel that the system is unjust. Therefore, it allows the government to have more control on the economy and control economic problems such as inflation, deflation, unemployment, poverty, and other similar issues (Calomoris, Fisman, & Wang, 2010). There are many disadvantages associated with a command economy which include the inefficient parcelling of resources as resources are not allocated according to the price mechanism. Thus, resources may be wasted in producing things that consumers may not want. Likewise, producers and workers do not have any incentive to work hard as they are not allowed to own wealth and are simply working for the government which would stunt the prosperity and go up of that country. Consumers would also have l ittle choice or variety and would also have lower standards of living as they would have a lack of products/services to choose from. Additionally, it is difficult for the government to provide all goods and services efficiently themselves and this may mean that the provision of some important goods/services may be prevented or may be provided inconveniently. Countries with planned economies may suffer in global plow and other such factors as they would not be able to motivate their citizens to exert their best efforts into production and trade without giving them personal incentives. Thus, this also causes a lack of foreign investment and a high tax revenue rate for the provision of government-funded services. Also, it is difficult to determine how the government would decide what should be produced in the economy and how they cease easily anticipate consumer demand (Warner, 2011). Accordingly, the planned economic system has become outdated as preceding communist or planned eco nomies such as China, Russia, and even Sweden are now in transition towards a more mixed economic system which will be explained in the next section of this paper.Mixed EconomyThe mixed economic system is a combination of the free market economy and the planned economy as this system has both a public sphere and a one-on-one sector. As mentioned before, most of the countries of the world are mixed economies as they have a public sector and a private sector. The mixed economy allows the government to intervene to provide essential goods and services such as police, medical care, education, welfare and pension schemes, and other similar services while the private sector is free to produce goods and services as well (Castells, 2011). However, the government will intervene where needed and prevent the production of de-merit goods and prevent producers from charging unfair prices amongst other things. Consumers receive the benefit of variety and choice in goods and services and are give n an incentive to work hard while they are also facilitated by the government in the form of free goods (public goods) and services (Meyer, 2011). The mixed economy combines the advantage of the free market economy and the planned economy and also shares some of the disadvantages of both respective economies. England is a mixed economy and then benefits from the advantages associated with not being a complete free market economy or a pure command economy, but also suffers from a few of the disadvantages of not being either of these economies (Meyer, 2011).Englands economical SystemEngland, while previously being one of the strongest economies in the world, is currently plagued with some(prenominal) economic problems, which have slightly weakened its economic system. Being a mixed economy, Englands government spends about 40% of its GDP upon government spending while the remaining 60% belongs to the countrys private sector. The 40% of government spending is 10% more than what is s pent in the USA as a helping of GDP (Cleaver, 2013). This is because Englands government spends a larger proportion of its tax revenue upon the provision of more comprehensive health services, unemployment, and welfare schemes for the poor, and the transport system of the United Kingdom (Castells, 2011). The country is benefitting substantially by not being closer to a pure free market economy as the government of the country plays a vital role in stabilizing several economic aspects of the country. First of all, the unemployment rate of England is increasing rapidly, which means that it is essential for the government to provide support for the unemployed. If the government had little or no role to play in the economy, the unemployment rate may have even been higher and the number of people that were currently out of jobs may have been out on the roads without provision of basic facilities (Gillespie, 2011).Moreover, as the country is currently in a state of recession, without gov ernment intervention, the living standards of people would have diminish substantially, putting the economy in further turmoil and in a possibly irreversible particular (Gillespie, 2011). England is also home to a large number of immigrants and students who form a large part of the GDP in the country annually. If the country had been a complete free market economy, the country was likely to be in a state of chaos as there would be no control upon the immigrants introduction the country and there would be no provision of facilities for these immigrants and students which would further burden the country with increasing abuse rates, further unemployment, and increasing numbers of homeless people filling the streets. Besides, with increasing numbers of immigrants and an increasing unemployment rate in the local population, the country is also benefitting from government spending upon free health services which lapse the citizens and visitors of the country under high quality healt hcare and helps prevent the spread of dangerous diseases from people who cannot spread out expensive medical treatment. The implications of this control imposed by the government include a better and fairer distribution of income along with the provision of unemployment benefits, free education, pension and welfare schemes, and high quality healthcare for all people alike (Cleaver, 2013). Furthermore, another essential part of the governments role in the economy includes the transport system which is subsidized for students, senior citizens, and people with lower incomes. Thus, the government is responsible for the provision of essential public goods and services which are needed to promote the welfare of the citizens of England and make them a prosperous economy (Bohstedht, 2010). Conversely, the disadvantages associated with England being a mixed economy rather than a free market economy include the fact that some services may be provided more efficiently by the private sector in cluding healthcare, as the National Health Service is taking up a substantial part of taxpayers funds and the standards of the service are also slightly deteriorating resulting in long waiting lists for patients who require treatment. Moreover, if the government privatized several more industries and promoted an environment of pure competition, it may result in the creation of additional jobs and help simplification the unemployment rate. Additionally, increased consumer spending and investment may also attract further foreign direct investment into the country and help bring the country out of its current recessionary state as Englands foreign direct investment rate has decreased over the years and UKs own companies have increased their investment in other emerging markets. The public has also been highly verbal and uncontrollable regarding the increasing tax rate in the country which would have been non-existent had the country been a free market economy (Cleaver, 2013). On the other hand, while there are advantages and disadvantages associated with the country being a mixed economy rather than a free market economy, there are also advantages and disadvantages associated with the country not being a pure command economy. The advantage that England has of not being a pure command economy is that it has been able to motivate its population to work hard and become a progressive state as workers are allowed to accumulate wealth instead of limiting the growth of its citizens and nationalizing all its industries. While there is some inefficiency in the allocation of resources, the countrys private sector does operate upon the price mechanism thus allowing the efficient allocation of resources according to the market forces of demand and supply (Boaden, 2010). England has also been able to move on high amounts of foreign direct investment and the immigration of skilled labour which would not have been manageable if the country had been a pure command economy. Consumers are also provided with a variety of high quality goods and services which has increased the countrys standard of living and has also enabled it to be an active role player in global trade (Boaden, 2010). Yet, there are certain disadvantages that the country has of not being a pure command economy and being a mixed economy which include the unequal distribution of wealth amongst its citizens which is causing increasing unrest. Moreover, there is ample wastage of resources in the economy because of increasing competition amidst firms and the country is suffering from several scandals in the realms of corporate social responsibility, quality, unfair pricing, and other problems in its private sector (Bohstedht, 2010).The country has also had to face immense problems because of the large number of immigrants entering the country each year and if the country had been a pure command economy, it would have not had so many potential immigrants to deal with (Boaden, 2010).Conclusi onEngland is best suited to be a mixed economy like most of the other economies of the world as this economic system enables the economy to combine the advantages of both the complete free market economy and the pure command economy. Additionally, while the country is progressing in the private sector, government intervention is essential for the provision of necessary public goods and services, without which the economy would substantially deteriorate the conditions of the poor. However, while the country has nationalized many of its essential services, the country should consider allowing privatization in the healthcare industry as the burden of taxes to pay for the NHS is increasing while the quality of the service provided by the NHS is deteriorating. Moreover, this is an essential industry which cannot be plagued with delays as is currently accident with the NHS. Thus, being a mixed economy, England should slightly further reduce its government spending to allow the private se ctor to benefit further while the government can exert legal control over the activities of firms in the private sector. Furthermore, the government must encourage private industries to increase employment, incomes, and consumer spending, and thus lead to a higher GDP and a more progressive nation. The country would also easily be able to pull itself out of its current recessionary state and reduce the tax burden on its citizens.ReferencesBaylis, J., Smith, S., & Owens, P. (Eds.). (2013). The globalization of world politics An introduction to international relations. Oxford University Press.Boaden, N. (2010). Urban policy-making influences on county boroughs in England and Wales. Cambridge University Press.Bohstedt, J. (2010). The Politics of commissariat Food Riots, Moral Economy, and Market Transition in England, C. 1550-1850. Ashgate Publishing, Ltd..Bremmer, I. (2010). The end of the free market who wins the war between states and corporations?. European View. Vol. 9(2) pp. 249 -252.Calomiris, C. W., Fisman, R., & Wang, Y. (2010). 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