Mixed economy is a planned economy. The public sector gets maximum benefits whereas private sector remains controlled. In certain fields of production, both public and private sectors operate in a competitive spirit. In the same way, the Private Sector cannot be left to develop in its own way.
Mixed economies have a high level of state participation and spending, leading to tax-funded libraries, schools, hospitals, roads, utilities, legal assistance, welfare, and social security. The Benefits of Mixed Economies A mixed economy allows private participation in production while ensuring that society is protected from the full swings of the market.
These factors increase efficiency, initiative, innovation and productivity.
The public and private sectors work in a co-operative manner to attain the social objectives under a common economic plan.